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MagneGas Corporation (MNGA)

Business description

MagneGas is a technology company that has developed a plasma-based system for the sterilisation and gasification of waste. This process generates a hydrogen-based fuel called MagneGas2 as a by-product which is sold as an alternative metal cutting fuel to acetylene.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 3.6 (9.6) (10.3) (3102.2) N/A N/A
2017A 3.7 (10.3) (11.0) (1531.0) N/A N/A
2018E 11.6 (8.1) (9.5) (71.1) N/A N/A
2019E 16.8 (5.4) (7.3) (46.4) N/A N/A

Last updated on 19/07/2018

Latest research

Investment summary

MagneGas's preliminary Q218 sales results show the benefit of the recent acquisitions of three distributors of metal cutting gases: Trico in Northern California; Complete Welding in Southern California; and Green Arc in Texas and Louisiana. These acquisitions complement its existing direct sales network in Florida, giving access to the two states with the highest consumption of metal cutting gases in the US. Q218 sales were $3.0m, a 213% increase on Q217. Both Complete Welding and Green Arc Supply showed significant quarter-on-quarter sales growth.

Last updated on 27/07/2018

Industry outlook

Management is also making progress in Europe. Having secured a $7.2m EU grant with its JV partner, it has formed a wholly-owned subsidiary in London so it can apply directly for further grants and government-backed financing as a European entity. The subsidiary also enables the company to begin directly marketing and manufacturing MagneGas2 in the UK and mainland Europe.

Last updated on 27/07/2018

Key management

Ermanno Santilli, CEO
Scott Mahoney, CFO

Company address

11885 44th Street N
Clearwater, FL
United States
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