17th December Conference Call: Post-Event Discussion Dustof - agree with your comments. I read recently that although the shipping industry are now adopting EGCS at a rapid uptake, that they (scrubbers) are relatively unproven for longjectivity and things like engine wear as a result of the higher back pressures on the engine. In the same vein msar remains untested in scrubber deployment. I wouldn’t expect the likes of Maersk to test scrubbers along with msar simultaneously but probably consecutively… if at all. MK did mention something about chartering HMS Quadrise to trial and get there own LONO as being discounted on costs, that makes sense but couldn’t they go to a shipper and offer MSAR at cost (perhaps even slightly discounted) and make it attractive in that respect, after all the infrastructure for producing the fuel is currently in place, tried and tested at CEPSA I’m sure the refiner would be onboard with that considering longer term sales.
17th December Conference Call: Post-Event Discussion One observation was that when the caller initially mentioned Maersk MK said I’m not going to comment on Maersk as per previous convention. I just wonder why he maintains the secret squirrel, top secret protectionism. What is it that Maersk hold over QFI to warrant non disclosure on this topic so as to be so tight lipped on past, present and future discussions concerning this shipper. My assumption is that QFI still see a possibility they could persuade Maersk to adopt MSAR, particularly given their turnaround on scrubbers and management changes. Hence, despite the damage Maersk have caused us, it makes sense to keep the door open and not sour the relationship. I’m sure there would be some satisfaction telling them to go jump, but it could be pyrrhic if we are still able to belatedly transform them into paying customers someday. My personal view is that nothing will come from Maersk for the foreseeable future, but I do agree that keeping the door open seems prudent.
17th December Conference Call: Post-Event Discussion Dustof - When MK was asked in the CC about Maersks vision 2050 carbon neutral mindset closing the door to MSAR he confirmed my own view; that MSAR is a plug and play fuel for the here and now. A stepping stone to the 2050 eventuality perhaps. One observation was that when the caller initially mentioned Maersk MK said I’m not going to comment on Maersk as per previous convention. I just wonder why he maintains the secret squirrel, top secret protectionism. What is it that Maersk hold over QFI to warrant non disclosure on this topic so as to be so tight lipped on past, present and future discussions concerning this shipper. Why not go to them and say hey you guys let QFI down so abruptly no doubt exercising a “force majeure” clause (although not disclosed to that effect) and say for goodness sake throw us a bone after all you are now going down the route of trialling scrubbers . But no all we are told is we still maintain a good relationship with this shipper. Were they not pitched and sold to us as a development partner! We effectively spent a large investment undertaking that trial, putting time and money in place to put that MMU at CEPSA, did that payoff? I’d say in the absence of a full LONO it didn’t pay the expected dividends but we are told the shipper got everything out of the trial they needed. Sorry if this is going over old ground.
17th December Conference Call: Post-Event Discussion Recording is available online: [link] Interested to hear people’s thoughts after listening to the whole thing.
17th December Conference Call: Post-Event Discussion I’ve added a note to clarify that point as it’s not 100% clear. AIUI, the end of this calendar year thing was a misstatement by MK (again!), and he corrected himself at the end of the call when someone prodded him on that exact point.
17th December Conference Call: Post-Event Discussion Ah…distracted again by the other half whilst typing so I missed your edit. Hopefully we’ll have clarification soon.
17th December Conference Call: Post-Event Discussion Dusty, Thanks for the excellent summary, and it was very good to hear that the significant shareholders are backing the offer with hard cash. However I would wish to question the bit which states “We probably shouldn’t expect announcements until towards the end of 2019 – that might rule out some of our short-term LTB theories(?). MK yet again misspoke and said end of THIS calendar year, when he meant 2019” since my notes state that MK was " confident that we can get something we can announce towards the end of the calendar year" and then “highly confident that we will have definitive project proposals by the end of this calendar year”. I was however subsequently distracted by an engineer who was installing our new Sky Q system here and missed a few snippets where he might have corrected both those statements. I was hoping to ask MK what he was in the USA for but the call closed just after I pressed the buttons. I guess he would have had to duck that one anyway though! I’ll have a listen to the recording when it is put up on the website to see if we can get to the bottom of the issues highlighted above. ATB, Tot
17th December Conference Call: Post-Event Discussion Thanks much appreciated for quick report it leaves me in no doubt that holding on and sticking with the company is the wise course of action again many thanks
17th December Conference Call: Post-Event Discussion Here’s my brief summary of the event. As usual, I’m not recommending anything regarding investment; just reporting. Team have spoken to major shareholders; expecting good participation. Continuing to deliver on opportunities as described at AGM. MK & JM been in NA and Japan as anticipated. Agree that environmental aspects should be emphasised more (although some customers don’t care if there aren’t regs around this, e.g. NOx). MK points out that refining and desulphurisation use a huge amount of energy; this needs to be accounted for when making environmental impact calculations (e.g. well-to-wake/well-to-burn rather than just burn). We probably shouldn’t expect announcements until towards the end of 2019 – that might rule out some of our short-term LTB theories(?). MK yet again misspoke and said end of THIS calendar year, when he meant 2019. Last caller clarified this, thankfully. But, if they can bring stuff forwards they will – not a hard constraint. O/O approach was chosen because it limits dilution and allows existing holders to participate rather than external entities. Other options, including venture capital type approaches were considered, but they would be at a dramatic discount to current SP and use up share issuance allowance. This approach is more beneficial to company and especially shareholders. Several of us here speculated this was the reason, and we can all pat ourselves on the back! They acknowledge criticism of offer price, was a hard decision and taken collectively with advisors and BoD. Team are confident they could have raised more, and they have alternative plans, but the blunt language is a legal requirement to be clear and transparent. The idea is that this funding bridges us to the point in 2019 that commercial operations should be clearer – opening up more favourable and less dilutive options. Team seemed confident on that (given history, take with appropriate salt). Question was asked about refineries self-consuming MSAR as a testbed for the product, JM did say that it was something “they are looking at” outside of Europe . MK mentioned that chartering a vessel to test burn/LONO is extremely expensive (wasn’t what questioner was asking). Loss of marine manager will not impact marine pipeline, as still significant expertise within the company. Talked about cost reduction at same time, which implies to me that this was a contributing factor. Agent operations (e.g. Madagascar) are longer term opportunities, but MK said “not necessarily smaller”. Working to update website as many sections are outdated. Some odd lady turned up for a chat whilst at the bar. Hard to understand! Many commitments by callers to participate in the O/O.
Today's RNS The conference call will tell us nothing that we did not know, or believe already. I have instructed my broker to take up the full entitlement and am going for nearly a third again to commit my available cash. You either want to support this company in its hour of need, save it going to the wall. Or you are prepared to lose everything you already own. The company has good irons in the fire, it needs time to develop them into deals. I want to help and cash is what QFI needs just now. Good luck all in whatever you decide to do.
Today's RNS 979matagordabay: conference call at 3.00pm (UK) on Monday 17 December 2018 Lets see what the wash up on Monday has to say. conference call at 3.00pm (UK) on Monday 17 December 2018
Today's RNS So what is the consensus of this open offer. Are we throwing good money after bad or is this a genuinely excellent time to get in again at ground level? MrP
Quadrise Fuels - QFI Investor call - 3.00pm, Monday 17th December A few queries I hope can be rasied in the coming call: Q1: Are Cenkos Securities plc the best Advisors to advise seeing that their company saw 90% pre-tax profit loss owing the the EU regs? How were they nominated/ by whom? How are they equipped to be a positive force in the short-term coming decisions? It is said that if QFI do not gather the required investment, the business could wind down by EO January 2019. Q2: I would like like to also ask about the building move MAERSK was involved with 2015: ( 2015 May - planning application submitted Ref no PA/15/01209 development.towerhamlets.gov.uk) [link] Maesrk moved from MAESRK HOUSE, 13th Floor, Aldgate Tower, 2 Leman St, London, E1 8FA - to plush new offices at 27 Market St, Maidenhead, SL6 8AA. [link] Aldgate Tower was knocked down at the point of all businesses moving to build: ONE BRAHAM - [link] The move was inotiated around the time of their contract with QFI, after which time the TRIAL SHIP in question was docked for some months (with a slight promise of all going ok) and eventually they backed put, leaving QFI in a quandry. Please cover these issues where possible. Regards, email@example.com
Quadrise Fuels QFI - Investor call Mon 17th Dec New thread for this coming call…
Today's RNS “whet the appetites” TOT, this is what I like about your posts, you are forever optimistic! Steady as she goes shipmate…