ThermoEnergy Narrows Losses
Worcester-based ThermoEnergy Corp. announced that its revenues soared in the third quarter and first nine months of the year, rising 70 percent to $2 million, and 57 percent to $5.6 million, respectively.
The company, which develops and sells wastewater treatment and power generation technologies worldwide, said revenues were mostly driven by contracts with the New York City Department of Environmental Protection (NYCDEP) and the company's first sale of a mobile FracGen water production system to the oil and gas industry.
ThermoEnergy narrowed its losses for the quarter, from $6.5 million, or 11 cents per share last year, to $1.9 million, or 2 cents per share this year. Its net loss for the first nine months of the year was $5.9 million, compared to $15.3 million last year.
Chairman and CEO Cary Bullock said the company "made key inroads" into the oil and gas industry with the sale of its first water production system and the launch of its TurboFrac-produced water treatment system. It also signed a $1.1-million contract with Paiton Energy, owner of the largest power plant in Indonesia, to recover ammonia in the plant's condensate polishing system.
"On the power generation technology side, we kicked off our Department of Energy grant project to model, design, build, and test a bench scale flameless combustion system for pressurized oxy-combustion power generation. Management expects the progress made in both our wastewater and power generation business strategies will lead to significant long-term growth for our shareholders," Bullock added.
However, gross profit for the quarter, ended Sept. 30, tumbled from $120,000 in 2011 to $1,000 this year.
ThermoEnergy said the drop was because of lower margins on the FracGen system due to higher-than-expected production costs on the first unit and a stop work order issued in August from the NYCDEP. Because of the stop work order, ThermoEnergy incurred ongoing production-related costs that couldn't be passed on to the project during the quarter.
ThermoEnergy said it was notified by the NYCDEP on Nov. 13 that it's terminating its contract with the company. ThermoEnergy said the termination of the contract may negatively affect the fourth quarter and early 2013 revenues.
"However, given our new focus on the oil and gas and biogas industries, we expect the short-term negative effect of the termination of the NYCDEP contract will be offset over the long term by new business from implementing our strategy," the company said in a statement.
The company said it decreased its operating costs in September by reducing its workforce and eliminating certain sales and administrative costs. Benefits of those changes are expected to be evident in the company's fourth quarter financial results.
WBJ Web Partners
Most Recent
Most Recent
0 Comments