Quantafuel releases its first quarter results

- Viridor becomes controlling shareholder of Quantafuel
- Viridor provides Quantafuel with a NOK 250 million loan facility, but new Equity will be required within Q2
- Quantafuel announces completion of Geminor share sale
- ReSource, Denmark’s largest plastic sorting facility, begins installation of main equipment
-Skive is not yet cash positive, but the increase of plastic processed in Q1 was 63% higher compared to Q4 2022
- MK IIplants in Dubai and Sunderland continue to progress, but the planned FID in Dubai will be delayed

Quantafuel today reported its fourth quarter results. We have put a challenging, but at the same time, rewarding quarter behind us. Following a broad process to secure a platform for growth for Quantafuel, we are pleased to welcome Viridor as the controlling shareholder of the company as of 5th May. Viridor will provide Quantafuel robust foundations for the company’s portfolio of growth projects and the two companies complement each other very well. The Board has called for an Extraordinary General Meeting on 12th May where Viridor is expected to assume control of the group and elect a new Board of Directors.

With the term loan facility of NOK 250 million in place, the group can manage ongoing commitments until around mid 2023. To finance the needs beyond Q2 2023, the group will need to issue new Equity to finance remaining commitments as well as the development of the MKII projects. The current board which is set to be replaced on May 12th recommends that raising new Equity is prioritised as an urgent matter going forward.

Quantafuel is also pleased to report that the construction of ReSource in Esbjerg, Denmark’s largest plastic sorting facility, is on schedule. The main structure is complete and installation of the plastic sorting treatment equipment has begun. The plan to commence commercial operations from the first quarter in 2024 is maintained.

In Skive, the focus remains to run three lines in parallel with the fourth line in standby. Although we will not reach positive cash flow for another few months, we see good improvements; During the first quarter, we increased our processing of plastic by 63% compared to the fourth quarter in 2022.

Quantafuel’s pipeline projects are progressing well, both in Dubai and in the UK. All our partners are confident that the end results will be plants defining a new standard within plastic recycling.

In Sunderland, the project is targeted to reach financial close in Q1 2024, with the plant starting operations late 2025. In Dubai, the FID decision will be slightly delayed, but work continues to optimise the CapEx, as well as for MKII in general.

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