EverGen Infrastructure Corp (TSX-V:EVGN) reports that it is advancing operations to bolster its standing as a leader in the Canadian renewable natural gas (RNG) market.
For its third quarter ended September 30, 2021, the company said it generated a gross profit of $1.58 million (81% of revenue).
“The increase from the previous quarter is reflective of the consolidation of a full quarter of RNG operations representing a higher proportion of gross profit, in addition to improved efficiencies across the group,” the company said.
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It also said it marked adjusted EBITDA of $0.8 million, “which is reflective of the seasonal business performance in comparison to the prior period”.
EverGen noted that its operating results in its RNG business were ahead of expectations as a result of an optimized performance at the Fraser Valley Biogas facility.
However, the company said its quarterly revenue of $1.95 million decreased by 42% quarter-over-quarter, primarily due to seasonal demand for tipping and compost driving down sales volumes.
“Our third quarter performance aligned with our seasonal expectations for our composting facilities, and we are pleased with the continued optimization of our sites, in particular Fraser Valley Biogas which saw production highs in the quarter,” said Chase Edgelow, CEO of EverGen, in a statement.
“Our IPO in August strengthened our position as a leader in the Canadian renewable natural gas market and as we continue to build the portfolio and advance our facility optimizations, we are furthering Canada’s efforts in combating climate change.”
In August 2021, EverGen completed an initial public offering (IPO) of 3,080,000 units at $6.50 each that raised $20,020,000 on the TSX Venture Exchange.
Following the acquisition of Fraser Valley Biogas Ltd in the second quarter of 2021, the company said immediate enhancement and optimization projects were completed and resulted in record production in the month of September, supporting the growing demand for RNG in the British Columbia.
EverGen added that optimization activities contributed an additional 18% of Renewable Natural Gas production for September compared to last year and 9% higher year-to-date production compared to last year.
Subsequent to the end of the 3Q, EverGen’s wholly owned subsidiary Net Zero Waste Abbotsford announced that the 20-year offtake agreement with FortisBC had been approved by the BC Utilities Commission, marking the final regulatory step with regards to the offtake agreement.
Under this agreement, FortisBC will purchase up to 173,000 gigajoules of RNG annually for injection into its natural gas system upon completion of an anaerobic digester project at EverGen’s existing Net Zero Waste Abbotsford composting and organic processing facility in Abbotsford, British Columbia. Once constructed this project will convert municipal and commercial organic waste into enough energy to meet the needs of more than 1,900 homes.
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