As of the close of the second quarter, order intake for the year-to-date period stood at $18.1 million, exceeding order intake at the same point in each of the previous five fiscal years of the Company by at least 90%. These results come from a wide variety of orders of varying size and value, and from a combination of both Custom Equipment and Turn-key Projects.
Custom Equipment orders continued to grow throughout the pandemic, but Thermal Energy is now seeing further growth as customers’ operations return to normal. Custom Equipment order intake for the first half of fiscal 2023 is more than double what it was last year at the same point and exceeds full-year Custom Equipment order intake levels in each of the five prior fiscal years of the Company.
Turn-key Project pipeline and resulting orders were heavily impacted by COVID lockdown measures, however fiscal 2023 has seen a turnaround in this area of the business.
Turn-key projects require a significant amount of engineering development before a project order is received, so are often preceded by a paid Project Development Agreement (“PDA”) as a precursor to the full Turn-key Project order. The number of PDA orders received in the first half of fiscal 2023 is double that of the same period last year. In addition to this, full Turn-key Project order intake for the first six months of fiscal 2023 exceeds order intake at the same point in each of the previous five fiscal years of the Company by at least 39% and is already 3.5 times the order intake amount for the full twelve months of fiscal 2022.
“Market conditions are such that all manufacturing industries are looking to save energy in their operations as quickly as possible. Combine that with aggressive carbon reduction targets and increases in the cost of carbon, and we find our customer’s enthusiasm for our suite of technologies and our skilled engineering continues to grow, and as a result, we are now seeing record levels of order intake in all major product categories,” said William Crossland, Thermal Energy CEO.
The most notable orders for fiscal 2023 so far are highlighted below.
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About Thermal Energy International Inc.
Thermal Energy International Inc., ranked as one of Canada’s Top Growing Companies in 2021, 2020 and 2019, is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors. We save our customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions. Our customers include many Fortune 500 and other leading multinational companies across a wide range of industry sectors.
Thermal Energy is a fully accredited professional engineering firm, and by providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, we can deliver unique turn-key energy and carbon emission reduction projects with significant financial and environmental benefits for our customers.
Thermal Energy's proprietary products include GEM™ - Steam Traps, FLU-ACE® - Direct contact condensing heat recovery, HEATSPONGE – Indirect contact condensing heat recovery systems, and DRY-REX™ - Low-temperature biomass drying systems.
Thermal Energy has engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, Italy, and China. TEI’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG and the OTCQB® Venture Market (“OTCQB”) in the United States operated by the OTC Markets Group Inc., under the symbol TMGEF.
For more information, visit our website at www.thermalenergy.com, our investor website at investors-thermalenergy.com, or follow us on Twitter @GoThermalEnergy
This press release contains forward-looking statements relating to, and amongst other things, based on management’s expectations, estimates, and projections, the anticipated effectiveness of the Company’s products and services, the timing of revenues to be received by the Company, the anticipated effects of COVID-19 on the business, backlog, and revenue, and the expectation that orders in backlog will become revenue.
Information as to the amount of heat recovered, energy savings, and payback period associated with Thermal Energy International’s products are based on the Company’s own testing and average customer results to date. Statements relating to the order-intake, expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company’s products, statements about the expected environmental effects and cost savings associated with the Company’s products, and statements about the Company’s ability to cross-sell its products and sell to more sites are forward-looking statements. These statements are not guarantees of future performance and involve several risks, uncertainties, and assumptions. Orders received in a fiscal year may not become revenue for the Company within such fiscal year. Many factors, some of which are outside of the Company’s control, could cause events and results to differ materially from those stated. Fulfilment of orders, installation of products, and activation of products could all be delayed for several reasons, some of which are outside of the Company’s control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Actions taken by the Company’s customers and factors inherent in the customer’s facilities but not anticipated by the Company can have a negative impact on the expected effectiveness and lifespan of the Company’s products and on the expected environmental effects and cost savings expected from the Company’s products. Any customer’s willingness to purchase additional products from the Company and whether orders in the Company’s backlog as described above will turn into revenue is dependent on many factors, some of which are outside of the Company’s control, including but not limited to the customer’s perceived needs and the continuing financial viability of the customer. The Company disclaims any obligation to publicly update or revise any such statements except as required by law. Readers are referred to the risk factors associated with the Company’s business as described in the Company’s most recent Management’s Discussion and Analysis available at www.SEDAR.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.