AlphaValue Corporate Services Fundamental Analysis FR
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Ecoslops

CR
Bloomberg   ALESA FP
Other Energies  /  France  Web Site   |   Investors Relation
The cleantech making oil residues green
Latest14/06/2017

MoU for the Antwerp micro-refinery

Fact

Ecoslops has signed a memorandum of understanding (MoU) with the Port of Antwerp and ATPC (Antwerp Terminal and Processing Company), refiner and storage provider for the VTTI Group (Vitol Tank Terminals International).

The parties will collaborate on the economic, technical and regulatory studies, aiming to file construction and operation permits quickly. These studies are expected to be completed by the end of 2017.


Analysis

The micro-refinery in Antwerp should have a minimum processing capacity of 60,000 tons per year, hence it is expected to be the largest plant to date. Sines has a capacity of 30,000 tons per year. The larger capacity offers economies of scale, which in turn should improve the project’s returns.

ATPC has fuel storage and refining facilities in Antwerp; the project will benefit from significant industrial synergies between Ecoslops and ATPC.

The unit will position Ecoslops at the heart of one of the largest port regions in the world. Altogether, an estimated 250,000 tons per year are collected in Antwerp, Rotterdam, Amsterdam and Hamburg.

To summarise the status of Ecoslops’ most advanced projects:
1) The Sines unit should achieve positive EBITDA in 2017 and process around 25kt (85% of capacity). In 2018, Sines is expected to run at 30kt (3,000 tons/month for ten months) and contribute a net operating profit;
2) Marseilles: construction should start in Q2 18 and the plant should become operational by the end of 2018;
3) Antwerp: economic, technical and regulatory studies should be completed by the end of 2017.


Impact

This confirms our expectation of a large project in the ARA region. We expect the unit to start operations in 2019.


Target
Upside 82.8%
Price (€) 12.9
Market Cap (€M) 56.9
Perf. 1W: 3.61%
Perf. 1M: 13.2%
Perf. 3M: 10.7%
Perf Ytd: 13.2%
10 day relative perf. to stoxx600: 3.94%
20 day relative perf. to stoxx600: 12.0%
Updates

06 Apr 18 Earnings/sales releases
Lighter, greener, richer

01 Feb 18 Earnings/sales releases
2017 brought strong business development and...

30 Oct 17 EPS change
Integrating the capital increase

28 Sep 17 Earnings/sales releases
Positive EBITDA at Sines

23 May 17 EPS change
H2 16 update

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