Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ECOSLOPS. We currently have 5 research reports from 1 professional analysts.
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Letter of Intent with the Egyptian authorities on Suez Canal feasibility study
16 Mar 17
Ecoslops has signed a Letter of Intent with EGPC (Egyptian General Petroleum Corporation), through its subsidiary SSCO, in order to study the feasibility of a residue collection and recycling plant in the region of the Suez Canal. Ecoslops and EGPC/SSCO have agreed that, following the feasibility study, they will both invest in the joint-venture that would be created, with Ecoslops as a major shareholder and project manager.
Sines refining volumes 2016 in line with expectations; >98% of waste processed
12 Feb 17
Sines refining volumes 2016 in line with expectations; >98% of waste processed EARNINGS/SALES RELEASES ANALYSIS 2016 revenues came in at €4.3m, beating our estimate (at €4.1m), growing from €2.3m in 2015 thanks to the ramp-up of the core business of micro-refining at Sines and sales of refined products (€2.2m vs. €0.3m in 2015). During H2 16, Ecoslops started studies on the Marseille project at Total’s site. Ecoslops confirms it aims at signing contracts for two new industrial units by end-2017; this would raise its outstanding balance to three projects, including Marseille. The Sines unit processed more than 17kt of slops during 2016 (of which 11 kt in H2), in line with our expectations. Ecoslops transformed over 98% of waste into refined products. This proves the potential and quality of Ecoslops’ process. The company reaffirmed it can treat 30kt of slops per year, as announced previously, and aims to process 25kt at Sines in 2017. The success of Sines’ operations supports Ecoslops’ commercial proposition and should help to sign the next projects.
Ecoslops wins ADEME SME initiative award
01 Dec 16
Ecoslops wins ADEME SME initiative award LATEST ANALYSIS Ecoslops’ project on 3D digital modelling and modularisation has been selected by France’s ADEME (Agence de l’environnement et de la maîtrise de l’énergie) within its “Recycling and valorisation of waste” initiative. The project will be eligible for a subsidy. The 3D digital model should help the company to streamline the engineering and construction of its plants through standardisation and modularisation. This in turn should reduce development costs and improve time-to-market.
Ecoslops to benefit from potential new green regulations on shipping hydrocarbon residues
23 Nov 16
Ecoslops to benefit from potential new green regulations on shipping hydrocarbon residues REGULATION ANALYSIS The Paris Agreement doesn’t directly address shipping. Global environmental regulations on the industry are drafted by the UN International Maritime Organization (IMO). At the end of October, the IMO agreed on a roadmap (2017 through to 2023) to develop a strategy to cut greenhouse gas emissions from ships to be adopted in 2023. According to the roadmap, IMO’s Marine Environment Protection Committee should define, among other things, the role of the “shipping sector in supporting the goals of the Paris Agreement.” Targets have not been set yet and it is unclear whether the framework would include stricter regulations on the disposal and treatment of sludges, bilge water and slops – not greenhouse emissions stricto sensu. However, additions to policies on hydrocarbon residues are likely in the context of regulating pollution from shipping and would probably support Ecoslops’ basket of opportunities, as the company offers a proven outlet to these by-products of the global maritime trade.
The path to green-solving slops
08 Nov 16
We initiate coverage of Ecoslops (BUY): the company renews the oil residues from shipping (slops and sludge), turning them into fuels through its unique technology. The current market capitalisation stands at c. €28m with the share price at €9.1; we see a large upside potential (+114%) based on the company’s project pipeline. Refining slops The world fleet generates more than 100m tons of oil residues. These wastes are rich in residues and heavy metals and therefore represent an environmental challenge. Ecoslops offers an integrated solution to port authorities, allowing them to comply with the regulations while recycling residues on shore. The company’s innovation lies in combining advanced refining techniques within a small processing plant, compared to typical refineries. Ecoslops operates its first industrial scale treatment unit (nominal capacity of over 30kt of recycled fuel) in the port of Sinès, Portugal. The group aims at signing contracts for three new projects by the end of 2017. It plans to build one in Marseille (we expect it to be a standard size, i.e. nominal capacity at 100t/day); we expect a larger plant in the ARA region (nominal capacity at 300 t/day) and another standard one in Abidjan (Ivory Coast). Ecoslops is a play on its ability to grow the volume of value-added products: 1) business development (expanding the asset base with new projects); 2) availability of slops; 3) smooth running of the plant; 4) commercial conditions in buying and collecting slops; 5) fuel product prices. The company has climbed a steep learning curve during the ramp-up of its Sines plant. Such an engineering development and industrial optimisation have taken several years. Ecoslops is the only player mastering this know-how and is partnered with Heurtey Petrochem, the downstream engineering specialist. This, coupled with a track record (being able to show a successful project in operation), represents a strong moat and contributes to position Ecoslops as the solution of choice to the slops conundrum across global ports. The effective roll-out of upcoming units should confirm Ecoslops’s proposition and enhance its attractiveness, while benefiting from the acquired experience. Growth runway By 2020, Ecoslops should be refining c. 210kt per year. This represents c. 0.2% of the world’s slops production and underlies a huge growth runway for the firm, which proposes a proven green solution to this by-product of global maritime trade. Therefore, there is a wide scope to expand the project pipeline beyond the next three units we are accounting for based on current visibility.
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
GMP FirstEnergy ― UK Energy morning research package
17 Mar 17
Pacific Exploration & Production1,6 (PEN CN); BUY, C$72.00: 4Q16 results and improving outlook | Serinus Energy (SEN CN)1, 3; Speculative Buy, C$0.65: FY16 results | IGas Energy (IGAS LN) (not covered): Final terms of a previously announced proposed capital restructuring | Tullow Oil (TLW LN): HOLD, £3.10: Right Issue at a discount & CNOOC exercises pre-emption rights in Uganda
The Momentum Continues - 2017 to be a Good Year
16 Mar 17
Welcome to IIR’s second “Blue Book” for Junior Resource Companies. This publication covers over 60 resource companies that were present at the 121 Group’s 2017 Cape Town Conference, held at Welgemeende in the Gardens district on February 6-7, 2016. The summaries in the book have been prepared with the assistance of the 121 Group based in London/ Hong Kong and Gavin Wendt from Minelife in Sydney, with the introduction being prepared by Mark Gordon and Gavin Wendt. The company information is accurate as at the time of the conference – and further information on the companies can be provided upon request.
Bang to rights
21 Mar 17
Tullow unexpectedly announced a US$750m rights issue on Friday at a 45.2% discount to the previous close. While this step confirms our investment thesis, the scale of the discount and the timing look like a slap in the face for investors and/or indicative of a weaker financial position than we are modelling. We publish revised estimates to reflect the impact of the issue and cut our Target Price to 215p per share (from 245p). We maintain our Hold recommendation.
Panmure Morning Note 22-03-2017
22 Mar 17
Acacia Mining and Endeavour Mining confirmed merger talks have now ended with Endeavour claiming an inability to “create adequate value for Endeavour shareholders”, most likely, we believe, given the disappointing ruling from the Tanzanian government on copper-gold concentrate sales. We were positive on the merger and believed a credible London listed Pan-African producer capable of challenging Randgold, would have been established. We make no change to our Hold recommendation today, and expect the shares to be marked lower in early trade.