PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) has announced its results for the fourth quarter and fiscal year ended December 31, 2022, with the company’s CEO noting that the policy landscape for industrial decarbonisation continues to evolve in ways that will benefit the company.
“Forward leaning social sentiment has long been the major input driving public and corporate policy on matters like energy transition. Now, with political, structural, and economic forces quickly catching up, PyroGenesis sees itself in a privileged position of being asked not only to supply merchandise, but also directly help customers uncover new avenues for change and transition,” CEO P Peter Pascali said in a statement.
“It is why, despite a revenue pullback in 2022, that we continue to be excited for the future, and why we have refined our strategy to better reflect the opportunity to directly impact transformational outputs stemming from heavy industry policy change.”
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He noted that Q4 revenue was at $3.3 million while full-year revenue was $19 million, adding that renewed interest in business lines such as waste destruction and implementing cost and resourcing refinements helped the company to post an exceptional 42.8% full-year margin.
“From a revenue perspective, it is disappointing that a slower pace of technology adoption occurred in 2022 than was anticipated – particularly with our aluminum sector prospects, as companies adjusted at various points to shortages of raw materials, soaring energy prices, and ongoing international trade and supply chain volatility – which weighed negatively on our results compared to 2021,” he said.
Pascali said that revenues are likely to be irregular and unpredictable quarter to quarter, taking into account the time lags associated with customers’ due diligence efforts as they contemplate significant technological change.
“While a level of measured caution will continue to exist for even the most sophisticated of potential customers, the degree of uncertainty around decarbonization was reduced further during 2022. As governments – especially in North America with the US Inflation Reduction Act and the major increases to Canadian green energy investment tax credits – implemented billion-dollar incentive programs toward a low-carbon economy, PyroGenesis was engaged in several industry-requested technology research initiatives. While signed order intake slowed in 2022, customer-partnered studies and research increased substantially. There is no guarantee, but we feel that this level of client interaction at the business development level serves to deepen industry relationships and bodes well for future revenue opportunities,” he added.
Looking ahead, Pascali said that in 2023, the company will remain focused on driving major lines of business toward widespread acceptance, moving newer innovations closer to commercialization, and maintaining high margins
“Beyond all else, we will strive to close more deals as a result of the volume of client studies underway. With the introduction and rollout of our refined business strategy (...) we believe this to be possible.”
PyroGenesis Canada is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases and are economically attractive alternatives to conventional ‘dirty’ processes.
Contact the author at jon.hopkins@proactiveinvestors.com