ECOSLOPS - H1 2016: Operational Report

Regulatory News:

ECOSLOPS (Paris:ALESA) (ISIN: FR0011490648; Ticker: ALESA / PEA-PME eligible), an innovative technology company that upgrades ship-generated hydrocarbon residue into new fuels and light bitumen, is reaffirming, in its H1 2016 operational report, after a full year of operation by the world’s first plant capable of transforming maritime slops into commercial products, that it is on track to meet its annual production target of at least 30,000 metric tons for its Sinès industrial site in Portugal.

Vincent Favier, CEO of ECOSLOPS, says: "It is one year to the day since the official inauguration of our Sinès site, and its performances are clear to see. Having proven its industrial efficiency by recycling and upcycling over 98% of the hydrocarbon residue collected, we can confirm that the monthly production target of 2,500 metric tons will be reached by the end of 2016 and that at least 30,000 metric tons will be produced in 2017, which was our initial objective. Simultaneously, our prospective and development projects and partnerships are progressing well. This industrial and commercial momentum further increases our confidence, and we are reiterating our objectives of signing deals for three new sites by the end of 2017 and seeing our Sinès site break even by the end of 2016.”

• In conjunction with the regular acquisition of client on a monthly basis, the Sinès plant continues to deliver a regular increase in its production. In April and May 2016, it produced almost 2,100 metric tons a month. These results strengthen our confidence in our ability to achieve a regular monthly output of 2,500 metric tons by the end of the year. Moreover, in June, after a year of operation, we successfully carried out an in-depth technical verification of our installations, and no issues were found.
• Since establishing itself in the Port of Sinès, ECOSLOPS has developed a win-win partnership with ship owners (notably MSC) that call in the port to discharge their slops. The quality of service provided by ECOSLOPS, as well as competitive prices have enabled the amount of slops collected each month to grow from 400 metric tons (dehydrated) to more than double that figure today. This shows that ECOSLOPS is capable of substantially boosting the collection of local slops due to the proven viability of its business model, which is based on transforming slops into commercial products rather than on the high collection prices that have to be paid by shipping companies elsewhere. Implementing ECOSLOPS’ model on a widespread basis will serve to drive the sustainable disposal and regeneration of slops across the shipping industry.
• The inability of traditional collectors to find long-term outlets for hydrocarbon waste has led to a slump in slop prices in Northern Europe. ECOSLOPS has capitalized on this situation by supplementing its supplies through the regular importing of slops. In June 2016, the site took delivery of a fourth tanker in order to allow the plant to rapidly increase its activity. Since the first tanker delivery (in August 2015), the average cost of imported slops (including transport) has fallen by 70%. Expressed as a percentage of the average selling price of products, the standard gross margin has more than doubled, enabling the Company’s business model to be strengthened during a time of low crude prices.
• Finally, following ECOSLOPS’ commercial and industrial successes, the Company has received its first backing from a Portuguese bank in the form of €1 million in medium-term (4 years) financing.
• Development and partnership projects are progressing well, which will be reported upon in future announcements.

About ECOSLOPS: ECOSLOPS has developed and implemented a unique technology to upgrade maritime transport oil residues (slops and sludge) into new fuels and light bitumen. The solution proposed by ECOSLOPS is based on a unique micro-refining industrial process that transforms these residues into commercial products that meet international standards. ECOSLOPS offers an economical and ecological solution to port infrastructure, waste collectors and ship-owners through its processing plants. The first industrial unit is based in Sinès, Portugal’s largest commercial port.

ECOSLOPS is listed on Alternext in Paris (ISIN: FR0011490648; ticker: ALESA) and is PEA PME eligible.

http://www.ecoslops.com

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