SGR Energy is a fuel blending and manufacturing company that has developed a platform for cost-effectively incorporating cleaner burning blendstocks and additives into a 1% Sulfur, #6 Fuel Oil, ready for commercial and industrial burning. SGR’s proprietary methodology with the additives, when blende…
SGR Energy is a fuel blending and manufacturing company that has developed a platform for cost-effectively incorporating cleaner burning blendstocks and additives into a 1% Sulfur, #6 Fuel Oil, ready for commercial and industrial burning. SGR’s proprietary methodology with the additives, when blended, produce a cleaner burning fuel oil that can be produced at a large scale. The SGR Energy technology is wholly owned by SGR Energy and has no styrenes or butylenes incorporated in its fuel.
Companies aimed at producing fuel oils that are clean burning have encountered cost, scaling issues, and a much less desirable product when using a “used lube oil” to lower cost, thus making SGR’s Fuel Oil the most logical solution that is currently available for the petroleum stream. Our mission is to address the problem from within the infrastructure to avoid large capital costs. Our proprietary fuel blending methods allow for cleaner burning with blendstocks that work as additives to improve the quality, and extend the volume to produce a cleaner burning fuel.
SGR’s finished utility spec, #6 Fuel Oil, will meet or exceed the specifications of our competitors and can be delivered to the customer at a much lower cost. Since the process is not feedstock specific, it allows for versatility, it can utilize inputs derived by various suppliers and can be modified based off of availability of inputs and price. SGR Energy has experienced significant growth by focusing on our core business of blending the highest quality #6 Fuel Oil and providing a reliable supply of fuel to our customers. We are very excited about the opportunities in front of us and expect our rapid growth to continue.
The Company is operated by a veteran of the fuel oil industry with over 27 years experience. He has previously been involved in the initial and growth stages of two other fuel oil companies and has utilized his direct and well-established relationships with customers and suppliers in growing the Company to its current level.
Founded in late 2011, SGR Energy has rapidly grown revenue to over $170MM in FY2018. There is currently a backlog of additional contracts for which the Company needs to acquire storage and terminal assets to execute on these contracts.
The Company is currently selling private shares and paying above average annual dividends. Assuming the company comes even close to hitting projected targets, those shares are expected to have a 9-10 multiple when we take the company public in the next few years..
The Company currently services customers in several countries in the Western Hemisphere with a vision of having a global presence from its Texas Corporation headquartered in Houston, Texas, USA.
Purpose of the Offering: The Company has an immediate need to raise $50 million in capital to fund the execution of existing fuel oil blending and distribution contracts. Additionally, the Company will raise over $250MM pre-IPO. These funds will purchase an ownership interest in the Company and be used to facilitate and support significant revenue growth via additional secured midstream assets, expanded working capital, and an expanded line of credit.
Operations: SGR Energy secures feedstock from refineries, blends to customer’s specification at a land-based terminal, and ships its product via waterway to customers.
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