Oil price collapse drives Quadrise shares and market capitalisation down

Emulsion fuel manufacturer Quadrise Fuels International said the drop in oil prices and uncertainty in the energy sector has affected investor sentiment, which affected the group's share price and market capitalisation.

However, the group said the economics of its fuel oil production "remains sound", as the 60% reduction in heavy fuel oil price only led to a 20% reduction in the MSAR value-add.

The company said the production remains "compelling even in such apparently adverse circumstances".

During the six months to December, Quadrise said it continued to operate on a low cost base, having £9.8m in treasury.

Despite oil price uncertainties, marine refineries have seen some substancial progress with several prostective refining partnerships.

"Recent evaluation of the current key programmes and the associated funding requirements suggests that the Quadrise group has sufficient cash reserves to meet all currently planned requirements," it added.

Shares fell significantly by 12.6% to 13.33p on Monday at 12:47.