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Northland Capital Partners View on the City - EQTEC

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EQTEC (LON:EQT)

SECTOR – UTILITIES

RATING – CORPORATE*

MARKET CAP – £31.2m

CURRENT PRICE – 1.7p#

ANALYST – MIKE JEREMY

 

Year-end**

12mths to June’17

6mths to Dec’17

 

 

 

Revenue (€’000)

40.8

20.2

 

 

EBITDA (€m)

(0.9)

(0.8)

 

 

Adj. pre-tax Loss (€m)

(1.8)

(6.0)

No

 

Adj. EPS (€c)

(0.14)

(0.009)

Forecasts

 

DPS (p)

N.M.

N.M.

Provided

 

Net Cash/(Debt) (£m)

(3.2)

(2.7)

 

 

P/E (x)

N.M.

N.M.

 

 

Dividend yield (%)

N.M.

N.M.

 

 

EV/EBITDA (x)

N.M.

N.M.

 

 

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Joint Broker to EQTEC and therefore this information should be viewed as a Marketing Communication. **Year-end change to December from June, reported period to Dec is 6mths

 

Contract worth c. €10m with Phoenix Energy

 

NORTHLAND VIEW

§  EQTEC announced its first equipment purchase contract, worth c. €10.0m, with Phoenix Energy - following the MoU of 24 September 2018 - to supply its proprietary EQTEC Gasifier Technology to two power plants in California.  The contract is expected to contribute to revenue in H119, continuing on into 2020.  The company also expects that this initial contract should generate further opportunities in the US market.

§  The company stated: “We look forward to providing shareholders with further updates in the near-term on the Company's pipeline of projects, which includes opportunities with values ranging from EUR10m to EUR100m."

§  Under the terms of the contract, EQTEC intends to deliver the first power plant engineering design within the next two months, after which Phoenix Energy and its client will review plans for equipment procurement for the first power plant.  EQTEC reported that Phoenix is progressing the required Permits, Licences and Authorisations (PLAs), Power Purchase Agreements (PPAs) and Feedstock Agreements for the project, which are expected to be in place before completion of the engineering design phase.

This is a significant, early realisation of EQTEC’s ‘Growth Optimisation Plan’, implemented by CEO, Ian Price, which focuses on executing contracts from its current project pipeline.  The contract extends to Phoenix’s second power plant and, as noted, should raise the company’s profile in the US market.

 

COMPANY DESCRIPTION

EQTEC is a technology solution company with a proprietary solution for energy generation based on high quality waste gasification.

 

 


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