EverGen Infrastructure Corp (TSX-V:EVGN) has posted third-quarter to September 30, 2022 revenue of C$2.0 million, up from C$1.9 million a year ago, despite lower renewable natural gas (RNG) revenues from flood-related production downtime, which has now been remediated.
“It is an exciting time for EverGen with strong momentum in the RNG market and as one of the first movers in Canada in terms of consolidating assets across the country,” said Chase Edgelow, CEO of EverGen in a statement.
“We are thrilled with the progress at our core RNG expansion projects that, once producing, will see us jump from C$3M to C$13M in run rate EBITDA and are fully funded. With our GrowTEC facility commissioning imminently and construction at Fraser Valley Biogas underway we are anticipating a strong start to 2023,” he added.
READ: EverGen Infrastructure breaks ground at the Fraser Valley Biogas RNG expansion project in Abbotsford
The independent renewable energy producer completed the acquisition of a 67% interest in Alberta’s Grow the Energy Circle Ltd. (GrowTEC) in July this year. GrowTEC is currently in the first phase of a core RNG expansion project designed to produce about 80,000 giga-joules per year (GJ/year) of RNG.
Construction of the facility is 80% complete, with commissioning expected before the end of the year. The facility will then move into the second phase of the project, which is expected to produce a total of 140,000 GJ/year of RNG.
The company said it had cash and cash equivalents of C$12.8 million as of the end of September post capex spend of C$3.5 million and C$1.5 million in insurance proceeds received.
Net loss in the third quarter was $1.8 million as a result of flood-related costs, the absence of a contingent consideration gain and an increase in general and administrative costs associated with its growth and transformation, which were partially offset by the insurance proceeds.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was little changed at $0.7 million from a year ago despite the carry-over impact from flood-related costs and increased general and administrative costs associated with future growth.
EverGen is an independent renewable energy producer which acquires, develops, builds, owns, and operates a portfolio of renewable natural gas, waste-to-energy, and related infrastructure projects. It commenced construction of its core RNG expansion project at Fraser Valley Biogas (FVB) in the city of Abbotsford, British Columbia in the third quarter.
Contact the author at jon.hopkins@proactiveinvestors.com