Last checked at 3 Oct 2019 13:15
3 October 2019
EQTEC plc
("EQTEC" or the "Company")
Completion of Maintenance Contract with Transports Metropolitans de Barcelona
EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, is pleased to announce that, via its wholly owned subsidiary EQTEC Iberia SLU, it has completed its first maintenance contract with Transports Metropolitans de Barcelona ("TMB"), the public transport operator in Barcelona, following a successful tender for the project earlier in the year.
As part of its wider commercial strategy, EQTEC has been actively seeking to employ its engineering capacity, experience and credentials in co-generation applications to bid for maintenance contracts with significant clients which have extensive infrastructure. This strategy allows the Company to generate revenues from its Operations and Maintenance ("O&M") team, whilst its waste elimination and energy recovery technologies are being developed and constructed. This enables EQTEC to build its credentials in a given market, while developing potential new sales channels for projects and services within this new customer base.
The Company won a tender for a maintenance contract with TMB, consisting of the overhaul of the engine cogeneration unit at TMB's Horta Station in Barcelona, Spain. The Company secured financing for the project from CAIXA Bank and the works were completed in September 2019, with final sign off being received on 3 October 2019. The initial works have generated revenue of approximately €155,000 for the group.
Following completion of these works, EQTEC will retain the preventive maintenance contract until May 2020 for both TMB's Horta Station and a second project, at TMB's Triangle Station.
TMB is the main public transit operator in Barcelona, made up of two formerly separate companies, Ferrocarril Metropolità de Barcelona, SA. and Transports de Barcelona, SA. and it runs most of the metro and local bus lines in Barcelona and the wider metropolitan area. The bus network serves Barcelona and the metropolitan area through 109 lines that cover a total distance of 920.62 kilometres. The Barcelona Metro service has six lines comprising 123 stations and a funicular railway. In 2017, TMB carried 592.45 million passengers and had 7,935 active employees.
Yoel Aleman, EQTEC's Chief Technology Officer, commented:
"We believe our commitment to technology, innovation and customer support is second to none in the sector. The capabilities of our engineering team are ideally suited to securing maintenance contracts with blue chip counterparties such as TMB and we will continue to reinforce this to the market.
"This type of maintenance contract with large entities, with significant infrastructure, are ideal for EQTEC to scale up the Company's services portfolio with activities that are capable of generating recurrent income. We are targeting further similar contracts alongside our focus on the Company's ongoing projects."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
Enquiries
EQTEC plc | +353 (0)21 2409 056 |
David Palumbo / Gerry Madden
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Strand Hanson - Nomad & Financial Adviser | +44 (0) 20 7409 3494 |
James Harris / James Dance
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SI Capital Limited - Broker | +44 (0)1483 413 500 |
Nick Emerson / Jon Levinson
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IFC Advisory - Financial PR & IR | +44 (0) 20 3934 6630 |
Tim Metcalfe / Graham Herring / Zach Cohen |
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Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing assistance in developing waste elimination projects to which it will ultimately sell its EQTEC Gasifier Technology ("EGT") and O&M services. EGT enables project developers to construct waste elimination plants and recover electrical and thermal energy from the waste streams.
EQTEC sources projects that have a local supply of waste in need of elimination and conversion. It builds relationships and brings together the developers, the waste owners, the building contractors and funders. It then supplies the waste elimination and energy recovery technology and provides engineering services to the projects.
Furthermore, EQTEC will provide O&M services to the operating projects generating recurring revenues over the life of the projects. EQTEC also seeks to provide Operation & Maintenance services to established operating co-generation plants generating recurring revenues over the life of these projects.
The Company is quoted on AIM and trades as EQT. Further information on the Company can be found at www.eqtecplc.com