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Quadrise Fuels (QFI) Share Price Plunged 15.9% After Reporting a £4.3M Annual Loss

Simon Mugo trader
Updated 4 Oct 2021

Quadrise Fuels International Plc (LON: QFI) share plunged 15.9% after reporting a £4.3 million loss for the financial year ended 30 June 2021.

Investors reacted negatively to the news despite reporting a minor loss than last year’s £4.8 million loss.

It seems that investors expected better results following the significant milestones achieved by the clean fuels company during the past year.

Quadrise Fuels’ crucial milestones include faster development of its innovative low-carbon bioMSAR™ fuel that uses renewable glycerine as a clean fuel component.

The company can adjust glycerine content in its fuels to meet the needs of each client’s mandated CO2 reductions and help companies meet their decarbonisation goals.

Quadrise Fuels’ testing of its bioMSAR™ fuel demonstrated impressive results, including a 26% average reduction in CO2 emissions compared to marine diesel. The company intends to fast track testing targeted at other industries.

The company also signed a joint development agreement with global shipping company MSC to test its bioMSAR™ fuels onboard their commercial container vessels. The company is almost done with the preparations for the tests, which are set to begin in H1 2022.

Quadrise is also conducting advanced tests for the use of Bitumen to generate MSAR™ fuels at a client site in Morroco despite slow progress due to COVID-19 related travel restrictions. Still, the project is now back on track since August 2021.

The sustainable fields company also has another client in Morrocco set to pay £100,000 after delivering a feasibility study in Q4 2021.

Today’s selloff seems like an overreaction, given all the positive milestones achieved by Quadrise over the past year.

From a technical perspective, the sustainable fuels company’s shares are trading in the middle of a wide trading range, which does not present an excellent trading opportunity.

*This is not investment advice.

Quadrise Fuels share price.

IG chart of Quadrise Fuels share price 04-10-2021

Quadrise Fuels share price plunged 15.92% to trade at 3.275p, falling from Friday’s closing price of 3.895p.

Should you invest in Quadrise Fuels shares?

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading