Friday, February 23, 2024

Ecoslops Announces Sale of Provence Operations and Refocuses on Portugal Business and Scarabox Technology

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Ecoslops, a pioneer in transforming petroleum residues into reusable fuel and light bitumen, has embarked on a significant shift in its business strategy. In a landmark move, it has sold its shares and shareholder loan in its Ecoslops Provence operation to energy giant TotalEnergies for a sum of 8 million euros. The transaction is slated to conclude by the end of February 2024.

Financial Impact and Future Projections

With the sale in motion, Ecoslops’ turnover noted a drop of 30%, amounting to 10.3 million euros on a like-for-like basis, compared to the previous fiscal year. The Portugal arm of the company, Ecoslops Portugal, witnessed a dip in turnover from 14.4 million euros in 2022 to 10.3 million euros in 2023. The decline is primarily attributed to a decrease in the sales of refined products, influenced by volume and price effects. However, not all was grim. The company saw a hike in Port Services sales by 14%, bringing in 2.4 million euros.

Looking ahead, Ecoslops Portugal aims to produce 24,500 tonnes in 2024, anticipating sales of approximately 13 million euros, including port services, based on the current Brent prices.

Scarabox – The Future of Ecoslops

The Scarabox business, a venture focusing on the local processing of used oils, is poised to become the centerpiece of Ecoslops’ growth strategy. Ecoslops has ambitious plans for Scarabox, with a demonstrator project in Cameroon in collaboration with Valtech Energy on the cards. The company also plans to progress with the sale of a Scarabox unit in Ivory Coast.

Financial Health and ESG Commitment

As of the end of 2023, Ecoslops reported a cash position of 3.2 million euros, with a net debt of 18.7 million euros. However, the net debt will see a significant reduction following the Ecoslops Provence disposal.

In its pursuit of sustainable business practices, Ecoslops has championed a strong focus on environmental, societal, and governance issues. This commitment is reflected in the company’s improved ESG rating and the renewal of the “Efficient Solution” label by the Solar Impulse Foundation.

The company will disclose its comprehensive annual results for 2023 on April 11, 2024.

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