H1 17 revenues came in at €2.9m, almost doubling from H1 16. Sines posted its first positive EBITDA; group EBITDA was just below break-even but €1.8m higher vs. last year. The net loss was €0.9m, a €2m improvement.

These results highlight very strong project management and business development capabilities.

The increase in value-added products in the product mix resulted in a higher selling price per ton. As announced earlier this month, the company has already managed to complete two deliveries to the nearby Galp refinery in August.
At Sines, operating expenses declined thanks to a larger contribution of locally-sourced slops (vs. imported) and a further reduction in staff costs.
In 2018, some relatively inexpensive modifications may be made to the Sines plant which should lead to higher daily production volumes.

On the technology side, Ecoslops’s work on the mini-P2R (4-8,000 tons per year) is an attractive avenue for the company’s know-how. A plant should fit within a 20 feet container. The technology could require some hundred thousand euros for laboratory development, and a few millions euros for a first project. A mini-P2R plant would probably be moveable.

The release confirms our upbeat views on Ecoslops.