Ottawa’s Thermal Energy adds major new order in solid Q3

Thermal Energy
Thermal Energy

Ottawa’s Thermal Energy International continues to report a significant order backlog as the company’s heat recovery systems attract new customers, the clean-tech firm said while announcing its third-quarter financial results Monday.

Thermal Energy (TSX-V:TMG) reported revenues of $3.2 million for the three-month period ending Feb. 28, about the same total it booked a year earlier. Fuelled by rising sales of its FLU-ACE heat recovery systems, the firm said revenues for the first nine months of fiscal 2018 were up nearly 20 per cent year-over-year to $10.1 million.

Thermal Energy, which doesn’t usually name its customers, also announced it has landed a new contract worth $690,000 to install its technology at a Canadian hospital. The deal brings its order backlog to $16.3 million, more than double the $8 million it reported a year earlier.

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The latest deal follows a number of big contract wins for Thermal Energy, which inked an $11-million agreement with Canadian pulp and paper firm Resolute Forest Products late last year and scored an $820,000 deal with a teaching hospital in March.

“This is tracking to be a banner year for us, and given the strong order backlog, our outlook beyond this fiscal year remains very positive,” CEO William Crossland said in a statement, adding the company recently added to its sales and marketing staff in Texas, the U.K. and Germany and is looking to hire additional salespeople in North America and Europe.

“We remain focused on growing our business, and to do so we must continue to grow and invest in our team,” he said.

Thermal Energy reported a third-quarter net loss of $159,000, up from $56,000 a year earlier. The firm attributed the loss partly to “higher operating expenses as a result of continued investment in growing the company.”

The company said its cash and cash equivalents totalled $2.1 million, down from just under $3 million as of May 31, 2017.

Shares of Thermal Energy were down just over six per cent in morning trading to 7.5 cents.

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