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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 21/06/2018

Latest research

Investment summary

During Q118, MagneGas announced the acquisition of three distributors of metal cutting gases: Trico in Northern California; Complete Welding in Southern California; and Green Arc in Texas and Louisiana, bringing total annualised revenues to $14m. 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. Management intends to double annualised revenues over the next three to five years by strengthening the existing sales team and making further small acquisitions in California and Texas. Management is also developing a direct route into Europe, which is the second largest market for industrial gases globally, focusing on supplying super-ports with hundreds of potential customers.

Last updated on 29/06/2018

Industry outlook

Sales increased by 34% y-o-y during Q118 to US$1.2m. $2.9m operating losses and recent acquisitions (total cash cost US$3.8m) were funded by drawing down $7.6m convertible preferred stock, representing 9.7m new shares, and a further 1.0m new shares issued as part consideration.

Last updated on 29/06/2018

Key management

Ermanno Santilli, CEO
Scott Mahoney, CFO

Company address

11885 44th Street N
Clearwater, FL
United States
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