Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ECOSLOPS. We currently have 6 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.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
24 Apr 17
Lok’nStore* (LOK): Growth supported by a strong balance sheet (CORP) | Mortice* (MORT): UK acquisition (CORP) | Avacta* (AVCT): Another milestone – 1st non-therapeutics licence (CORP) | Petra Diamonds (PDF): Trading update and Q3 results (BUY) | Nasstar* (NASA): Growth and margin focus (CORP)