PyroGenesis swings to a profit in 2020 with $42M in earnings

PyroGenesis Canada Inc (TSE:PYR) (NASDAQ:PYR) (FRA:8PY) announced strong year-end results on Wednesday evening that saw the company deliver nearly $42 million in earnings during the year. 

The technology company’s 2020 revenue came in at $17.8 million, a 269% increase over the $4.8 million it put up in 2019. 

What’s more, the Montreal-based firm swung to a profit, posting net earnings of $41.8 million or $0.28 per share compared to the $9.2 million loss or $0.07 per share in the financial year 2019. 

READ: PyroGenesis Canada receives grant to develop pot lining waste recovery process

The Canadian company harnesses the unique properties of thermal plasma to melt and transform metal, carry out high-temperature chemical reactions and convert waste into energy. 

PyroGenesis ended the 2020 financial year with a contract backlog of $30 million, according to a statement.

“We are happy to announce Q4, and fiscal year-end results for the period ending December 31st, 2020, which continue the historical trends began earlier in the year,” CEO Peter Pascali said in a statement accompanying the numbers.

“Our full-year revenues of $18 million reflects the successful processing of backlog from signed contracts previously disclosed. The Board’s choice of strategy has been validated with the reporting of the second profitable quarter in a row.”

Net income from operations (before share-based expenses) was $3.3 million for the year, which Pascali called “quite significant”, given the uncertain environment of 2020. The company also retired nearly all of its debt, but also uplisted to the Toronto Stock Exchange and positioned itself for a NASDAQ listing in the first quarter of 2021.

“The successes of 2020, when combined with the results from our strategic investment, have contributed to a basic EPS of $0.16 for the quarter, and $0.28 for the year, both of which have exceeded previous guidance,” the CEO added.

“With a strong balance sheet and approximately $27 million of cash-on-hand as at this writing, the company is well-positioned to execute on its strategy of growth and solidify its position as an emerging leader in the reduction of greenhouse gas emissions, and as such, we expect these trends established in 2020 to continue.”

Green ambitions

PyroGenesis told shareholders that it recently repositioned its offerings to highlight the greenhouse gas emissions reduction benefits associated with the majority of its products. The company said its products do not require environmental incentives like tax credits, certificates, and environmental subsidies to make sense economically.

“We believe these incentives will be a tailwind that will add directly to shareholder value,” the company wrote.

“We consider this repositioning to be timely as many governments around the world are considering stimulating their respective economies by promoting environmental technologies. As such, Management expects that this repositioning will result in increased revenues.”

Shares of the company were trading 7.5% higher premarket Thursday on the NASDAQ at US$7.28 and at C$8.46 in Toronto at Wednesday’s close.

Separately, on Thursday morning, the company said it had appointed DGWA, the German Institute for Asset and Equity Allocation and Valuation, a German investment banking boutique, as its Investor and Corporate Relations advisor in Europe, effective April 1st, 2021 for a period of 12 months.

“We are delighted to be working with DGWA to increase our visibility within the European financial markets, and also raise awareness of our product offerings amongst potential clients in Europe,” PyroGenesis CEO Pascali said. 

“Our sales growth and momentum in backlog, which should drive near-term profitability, paired with our commitment to green manufacturing while helping mining and metallurgical companies meet their carbon-neutrality goals, matches the expectations of sustainability-conscious European investors and stakeholders.”

Contact Angela at [email protected]

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Story by ProactiveInvestors