EQTEC – Full year results update

Landmark year in 2021 places the company at a growth inflection point and ready to enable the Net Zero Future

EQTEC’s leading-edge, clean syngas technology is at the centre of sustainable waste-to-value plants, with the company providing project development, engineering and design services to plant operators and investors. The aim is for its technology to enable the Net Zero Future through advanced solutions for production of hydrogen, biofuels, SNG and other energy from a broad variety of waste streams.

  • Full year results confirm progress in 2021 with expectations for an even better 2022

    During 2021 EQTEC made significant progress across its opportunity pipeline and active development projects. At year end, there were 17 projects under construction or development, with the company active in seven international markets. Two Market Development Centers in Italy and Croatia are expected to be operational in H2 2022, showcasing EQTEC’s technology in more, live commercial settings. Three other plants are under construction in the U.S., Greece and Croatia, with a growing set of projects under development. As a result, strong revenue growth is expected in both 2021 and 2022 versus previous years.

  • 2022 strategy – focus on revenue growth, new syngas applications, ESG, promoting gasification technology and becoming a technology licensor

    With EQTEC now firmly in the “deal growth” stage of its lifecycle, a key objective for 2022 will be further revenue growth, with the number of projects under construction and development increasing. The company will also test and develop more high-margin feedstock types and extend its technology into new syngas applications such as waste-to-hydrogen, waste-to-SNG and waste-to-biofuels. A range of ESG goals has been added to the three-year business strategy and annual business plans, with EQTEC looking to give clean, waste-to-syngas a greater profile, showcasing its technology as the market leader. Longer-term and taking lessons from digital technology companies, EQTEC is positioning itself to be a technology licensor, a trajectory it believes gives it potential to become a multi-billion revenue business.

  • Significant, long-term growth potential suggests a much higher justifiable valuation

    Following the 2021 results, we have updated our forecasts and valuation for EQTEC. On our new 2024 forecasts and on an EV/EBITDA multiple basis we derive a value of 3.03p per share, which discounted back to end 2022 at a rate of 12% gives a price of 2.41p per share, a figure which we adopt as our updated target price. Conviction Buy.


    EQTEC is a research client of Align Research. Align Research holds an interest in the shares of EQTEC. Full details of our Company & Personal Account Dealing Policy can be found on our website http://www.alignresearch.co.uk/legal/ 

    For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.

Table: financial overview
Year to Dec 2021A 2022E 2023E 2024E
Revenues (€m) 9.17 30.2 61.5 121.6
Adjusted EBITDA (€m) (3.84) 1.90 5.60 22.10
EPS (p) (0.058) 0.0083 0.033 0.142
Source: Company accounts & Align Research