EverGen Infrastructure Corp (TSX-V:EVGN) has revealed that it ended its second-quarter to June 30, 2022, with cash and cash equivalents of $17.4 million, and said it is poised for a catalyst-rich second half having reached key milestones in its expansion projects.
Canada's renewable natural gas (RNG) infrastructure platform said its 67%-owned subsidiary Grow the Energy Circle Ltd (GrowTEC) is expected to complete the first phase of a core RNG expansion project designed to produce about 80,000 gigajoule per year (GJ/year) of RNG in the fourth quarter. The unit will subsequently progress into the second phase of the project, which is expected to produce a total of 140,000 GJ/year of RNG.
"We are excited to see the recent transformative tailwinds develop for the RNG sector with governments and utilities around the globe increasingly focused on supporting sustainable energy infrastructure,” EverGen CEO Chase Edgelow said in the results statement.
READ: EverGen Infrastructure inks term sheet for $31M senior term loan to support funding of RNG facility upgrades
“We have positioned EverGen as a leading RNG platform with a core operating portfolio and pipeline of projects in Canada set to deliver significant RNG volumes and accelerate the energy transition. Having achieved key milestones in our core expansion projects, we have a clear path to deliver increased RNG production in excess of 2 million GJ per year and are primed for a catalyst-rich second half of 2022," he added.
EverGen said its operating results for the three months ended June 30, 2022, were impacted by unseasonal weather during the period and the timing of flood-related lost revenue and expenditures incurred relative to the recognition of insurance proceeds.
The company reported lower revenue of $2.4 million year-over-year for the second quarter, due to a fall in the volume of incoming organic feedstock and the seasonal impact on organic compost and soil sales.
EverGen said this month it had received confirmation from its insurers that an additional $1.5 million of partial insurance proceeds have been approved, of which a significant portion of the amount will be included in net income (loss) and adjusted EBITDA for 3Q 2022.
The company's net loss for the second quarter was $500,000 due to lost revenue and expenses related to the November 2021 flooding in British Columbia that affected the surroundings of its Fraser Valley Biogas facility and Net Zero Waste Abbotsford facility. Adjusted EBITDA was $400,000 after taking into account estimated flood-related lost revenue and expenditure of approximately $1 million and lower revenue due to unseasonal weather.
EverGen also announced that it has appointed Apollo Shareholder Relations to provide investor relations services to the company, effective August 29, 2022 for an initial term of three months for a monthly fee of up to $10,500 per month based on the fulfilment of key performance indicators.
EverGen saod it will hold a results and corporate update conference call at 10.00am ET on Wednesday, August 24, 2022, hosted by its CEO Chase Edgelow. Investors can join the call here.
EverGen is combating climate change and helping communities contribute to a sustainable future. Headquartered on the west coast of Canada, EverGen is an established independent renewable energy producer which acquires, develops, builds, owns and operates a portfolio of Renewable Natural Gas, waste to energy, and related infrastructure projects.
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