Thermal Energy sees steep drop in Q3 revenues amid stricter COVID protocols

Thermal Energy

Ottawa cleantech firm Thermal Energy International says its revenues took a hit in the third quarter after tougher measures aimed at curbing a new wave of coronavirus infections hampered the firm’s ability to install new products.

In its latest financial statements filed this week, Thermal Energy (TSX-V:TMG) reported revenues of $3.7 million for the three-month period ending Feb. 28, down from $5.8 million a year earlier as COVID-19 continued to wreak havoc with the global economy.

The company posted a net loss of $34,000 in the third quarter, compared with a $430,000 profit a year earlier.

CEO William Crossland said that while sales of steam traps and easier-to-install heat recovery systems tracked well ahead of the previous year’s pace in the company’s third quarter, installations of its high-revenue turnkey heat recovery systems stalled as COVID-19 safety protocols prevented the company’s engineers and technicians from visiting customer sites.

New orders up

But Crossland also said growing global demand for Thermal’s technology that recycles wasted energy from boiler plant and steam operations helped push its order backlog from $3.4 million at the end of February 2020 to $6.1 million this year. 

In a statement, Crossland said new orders were up nearly 90 per cent year-over-year in the first nine months of fiscal 2021.

“We also continue to have a very strong financial position with cash and working capital balances of $4.4 million and $4.2 million respectively, indicating we are in a strong position to continue growing the business,” he said.

Thermal Energy also said it’s landed a couple of significant new contracts early in the fourth quarter, including a $1.2-million deal with a major U.S. dairy group and a $500,000 order from a “leading global brewer” in Russia.

The company’s shares were unchanged at 23 cents in mid-morning trading on the TSX Venture Exchange.