Shares of EQTEC PLC (LON: EQT) have been falling over the past few days despite the waste to energy gasification company recently making some positive announcements.
The company recently announced that it is on track to hit its profitability targets for 2021, driven by the recent expansion of its pipeline of non-contracted projects.
Eqtec has signed several lucrative partnerships, with the latest one being with MetalNRG to develop sustainable green energy projects in the UK jointly.
The company has received significant interest in its products from Asia, the Middle East and Australia, translating into 75 new projects compared to the 41 recorded in a similar period last year, an 83% improvement.
Eqtec said that it expects to generate at least €15 million in revenues this year and report its first profitable year in 2021.
The firm also announced that Idex, a French energy company, may enter the UK market by partnering with Eqtec on its Billingham project. Eqtec plans to act as a co-developer on the project once it secures the requisite funding.
Eqtec will supply the gasification technology that would transform refuse-derived fuel (RDF) into clean energy. The firm intends to process 200,000 metric tonnes of municipal residual waste into RDF while generating 25 MWe of electricity.
The company noted that the distribution of its projects across the UK, Ireland and Spain had left it well-positioned to deal with Brexit, given that it still maintains a strong presence in the European Union.
It is not clear why Eqtec shares have not rallied despite the latest positive announcements, but maybe it is because of the controversy that its Billingham project attracted. Investors may be adopting a wait and see approach to see if similar issues will arise with the firm’s other projects.
Eqtec share price.
Eqtec shares have been falling despite the company’s positive updates as investors remain cautious.
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