Eqtec Share Discussion Threads

[m4rtinu] 09/5/2023 10:26

Still think Eqt has a lot of proving of itself to do over the next couple of years. And whilst Eqt have reined in finance, there still seems the desire to expand (too) quickly. Cash, completion and credibility should be the mission in the short-term. Let's hope they succeed.

[m4rtinu] 09/5/2023 10:18

About Movialsa.

[stevea171] 09/5/2023 10:08

It's a commercial operation not owned by EQT. If it wasn't profitable it would have closed years ago. EQT has been allowed recently to use it to show case to potential customers ahead of the Italia MDC taking over for this purpose.

[desflurane] 09/5/2023 10:00

Re post 4074. But is it generating cash?

[stevea171] 09/5/2023 09:06

What about Eqt's Movialsa, Spain plant, 6MW, and operational for the past 10+ years?

[yump] 09/5/2023 09:01

I don’t think it will ever be viable. Spreading all around the world before just one plant is fully operational and profitable and before any strategy has been proven - seen that before and it ends badly.

[vatnabrekk] 09/5/2023 08:42

Good heavens juju, steady on with the positivity!

[juju44] 09/5/2023 08:21

I may have lost the plot but I have added .

[stevea171] 08/5/2023 22:30

EQT stake in the 2 MW North Fork plant is reduced to 28.5% as quoted in the AR but subject to on going legal process. Valuation of NF approx $20 million. So that would indicate the EQT holding in NF is $5-6 million.

"As part of the agreed terms, it was specified that the Group will remain as an equity shareholder in NFCP with the final shareholding being determined during the legal process post 31 December 2022 as 28.52%."

For comparison, the larger 3MW Wilseyville, Blue Mountain, California EQT biomass plant which is due FC is expected to cost of the order of $33 million.
"Total Project Cost: $32,899,462"

"The additional funding required for construction will be provided by Phoenix Energy from sources including a $25 million United States Department of Agriculture-backed loan and $7 million from the sale of tax credits."

[juju44] 08/5/2023 14:06

Technically bombed out . very oversold . Bottom could be in

[m4rtinu] 05/5/2023 13:40

Steve, I agree all of the above is promising. But Eqtec now have to prove they can get these projects to meaningful milestones in the timescales indicated. Let's hope they do. Cheers. MU.

[stevea171] 05/5/2023 13:07

If this project sale comes off in the next 8 weeks as expected what revenue will it raise for EQT?
Up to EU5 million (revised)?

-- Acquisition of France MDC in July 2022, followed by engagement of prospective buyer, confirmation of planning, feedstock and offtake arrangements; project sale expected in H1 2023.

Also FC on Croatia MDC is way overdue and is expected to be in operation before year end.
We expect financial close, commissioning and live operation of the plant in late 2023.

Also refi of Italia MDC should release funds tied up there with Bank finance.

North Fork ditto following commissioning this summer.

[aja2] 05/5/2023 12:16

01 Dec 22: revenue forecast, as presented in its Interim Results on 29 September 2022, to EUR5 - 7 million. The Company forecasts an updated FY 2022 EBITDA loss in the range of EUR4 - 5 million. So the loss was accurate and the revenue was up by €2M.

[aja2] 05/5/2023 12:11

I actually see NF as a positive given that the losses have now been declared, it will soon be in operation and they'll have access to how the equipment performs.Longspur and Panmure released their notes earlier today; Panmure had a 1.3p target and was pretty happy that it's deploying a more focussed business strategy as a tech supplier and licensor and move away from significant capex outlay for projects. To be fair EQT had a more capex lite plan in mind a few years ago but due to struggling to get financiers involved, funded the first plants.

[marktime1231] 05/5/2023 12:10

Did anyone spot an outlook or forecast for revenues and ebitda or have they completely given up on that? Last year I think they quickly cut back to E9M from a starting ambition of E27M revenues?

How long will the March fund raise keep the lights on, about until the end of the year unless EQT actually make some money this year?

[2 risky] 05/5/2023 12:07

Best hope for a return here is a take out by a larger player.

That's assuming the tech is as good as it appears to be and the company stays solvent long enough for enough profits to roll in.

Fun punt for me now,not throwing any more amounts of serious cash at it.

GLA

[siprince2512] 05/5/2023 11:55

EQT is on the right track even if it shows losses the future is promising

[m4rtinu] 05/5/2023 11:47

There is a lot to read through and digest in the full report. First impressions:
Negative: N Fork
Positive: France

And whilst costs have been reined in, there still seems a desire to accelerate before stabilisation is assured. I am still trying to get my head around likely revenue streams (and value of these) for 2023. Italy, Croatia, Greece, France. All still with question marks over actual timescale (for now).

The report did say company forecasts have been made up to Apr 24. Though f/c were well wide of the mark before, due to UK project. I guess there may be an update from in house analysts.

[aja2] 05/5/2023 10:58

Mainly because they declared the NF losses.

[stevea171] 05/5/2023 10:58

OUTLOOK
2022 was a challenging year in a rapidly changing market, but for EQTEC it was also the start of a significant pivot from small-scale projects with local developers and partners to larger-scale projects with the world’s best developers, technology partners and delivery partners. The tighter capital markets accelerated our strategic focus and forced choices that will facilitate completion of the pivot toward technology licensing.

The pivot continues in 2023 and will carry on until the momentum of growth takes over. Not only will our ecosystem of partners provide essential capability across the value chain of developing, building and running plants with EQTEC technology, but they will also take EQTEC technology to market with us. The partners we have built are already bringing us projects and prospective clients. They are spreading the word and attaching their respected brands to it.

As the Company pivots away from legacy projects and sheds the burden of the liabilities they carry, and as we apply our business strategy to make the right choices about the projects ahead in France, in Italy, in the UK, in the USA and beyond, we will gain momentum toward our objective of becoming a leading, global technology licensor and innovator of new energy infrastructure.

[volsung] 05/5/2023 10:53

Losses widening

[scrutable] 05/5/2023 10:52

Stupendous report.
Investors selling today must be completely unable to judge the potential for any of the multiple lines of development radiating from this extraordinary company. I have never seen so many opportunities opening simultaneously from a single small company.

The main downside was the possibility that David Palumbo could not control it all and that a major project could run into trouble as North Fork did but has now been rescued. The report shows that he has seen the light and relaxed financial involvement in several SPVs he could not get financed..

There is simultaneous relief in this report from:
1) E15m reduction in liabilities

2) University of Lorraine increasing its back-up to control the gasification science of the widening range of eco/scientific targets like contaminated plastics and SAF etc production

3) Confirmation that several Billion £ companies like Wood are confirming EQTEC's credibility amongst bankers etc for, and resolving the project financing problems, which were out of control last year.

4) the program of visits to the Italian DMC during 2023, demonstrating that EQT is the first company globally since Movialsa's start-up to convert biomass wastes controllably into useful gas supplies,power and salable char

5) that viral commercial progress in California, stymied at North Fork, has been revived by the State just at the same time as the USA passes the huge Inflation Reduction Act largely to fund alternate energy projects..

6) The much improved business model, DMC, and early projects in France empowered by EU legislation, should propel EQT France into faster growth than EQT in the UK.

[stevea171] 05/5/2023 10:39

AR:

France is the Group’s best example of a market following EQTEC’s business strategy. The pipeline there is founded on a MDC. The projects being progressed there are funded before EQTEC engages with them, so the Company need not invest its own capital and can devote its efforts and resources to design, engineering and technology supply.
It is the first market wherein EQTEC will charge for its services from the outset of work all the way through to plant commissioning and beyond.

In France, we engaged local, regional and national government-level funding sources as well as Tier 1 and Tier 2 owner-operators of infrastructure. The engagement started in late 2022 has already born fruit in early 2023 with several announcements of pre-funded projects through government and private sources. We look forward to further updating during the course of the year.

In Croatia, we confirmed completion of manufacturing for key components and continued progress with investors in and operators of the recommissioned Croatia MDC plant in Belišće, Croatia. We expect financial close, commissioning and live operation of the plant in late 2023.
The Croatia MDC will demonstrate EQTEC’s syngas solutions for Industrial business models, which offer on-premise or near-premise, circular transformation of industrial and/or other waste into valuable energy or biofuels. Typically, the waste taken from a given industrial site is cleanly and efficiently returned to that site as electrical power, thermal energy and/or biofuels in support of industrial operations.
Not only is this circular process clean, but it replaces the business costs of both waste removal and energy generation with a single, cost-effective solution.

[juju44] 05/5/2023 09:13

Its not good but its not all bad either . A new competent CEO could work wonders as the potential is there

[stevea171] 05/5/2023 08:55

Excellent. Small but very welcome assistance from the US Government at a critical time for completion and commissioning of the plant.