Growth underpinned by multiple contract wins
March 2018 Quarterly Report
Key Q1 2018 highlights: On track to deliver accelerated growth in 2018
- Contract revenue backlog of US$94.9 million (including San Quintin) at 31 March 2018
o of which US$68.0 million is anticipated to convert into revenue in 2018, on top of US$10.2 million revenue generated in Q1 2018, with further revenues to come from the current sales pipeline and sales activities
- Achieved financial close for the US$48 million San Quintin, Mexico project, including 30-year-recurring revenues
- China market opportunity materialising - relationships and product awareness building with five operational reference sites and an additional sale through Jinzi of an MABR wastewater treatment plant for the local government of Zhenfeng County, Guizhou province
- Rapid deployment of Nirobox to a resort facility in Philippines foreshadows further opportunities in the region, while brackish water treatment Nirobox sales in Argentina highlight Nirobox's continued global expansion
- Strengthened management team with CFO and CMO appointments
- On track to deliver accelerated growth in 2018:
o Revenue expected to nearly double from 2017 to between US$105 million to US$115 million
o Gross profit expected to be between US$22 million to US$25 million.
Henry Charrabé, Managing Director and CEO of Fluence commented:
"Over the first quarter of 2018, Fluence has achieved new contract wins in new regions that will support our accelerated growth objectives for this year. We are investing in our partner relationships and have recently created the new role of Chief Marketing Officer to strengthen our global sales efforts and build on our existing partner relationships.
"The technologies Fluence has developed can be deployed cost-effectively, quickly and with more flexibility than alternative solutions available in the market. This was evidenced by the deployment of a Nirobox SW unit in the Philippines, which was installed and operational within one week of receiving the order.
"Water scarcity is a global issue that affects people and governments around the world. There are multiple opportunities in the pipeline and we expect this to build over time. It was encouraging that we were recently able to achieve financial close on the US$48 million San Quintin water desalination project in Mexico. In addition to the construction component, this project will also provide Fluence with recurring revenues from a 30-year operating and maintenance agreement."
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About Fluence Corporation Ltd
Fluence Corporation (ASX:FLC) (OTCMKTS:EMFGF) has experience operating in over 70 countries worldwide and employs more than 300 highly trained water professionals around the globe. The Company provides local, sustainable treatment and reuse solutions, while empowering businesses and communities worldwide to make the most of their water resources.
Fluence offers an integrated range of services across the complete water cycle, from early stage evaluation, through design and delivery to ongoing support and optimization of water related assets. With established operations in North America, South America, the Middle East and Europe, Fluence is also expanding into China's rural wastewater treatment market.
Global consultancy Frost and Sullivan recently awarded Fluence Corporation "2018 Global Decentralized Water and Wastewater Treatment Company of the Year", noting in their award dissertation:
"While typical decentralized water treatment systems are relatively expensive, complicated, and inefficient, Fluence Corporation leverages innovative and smart technology solutions backed by decades of industrial know-how to excel in water and wastewater treatment solutions. Fluence's excellence becomes apparent through its success, as the company continues to expand its existing offerings as well as partnerships with other prominent companies in the industry. With its easy to use, sustainable, smart and cost-effective solutions as well as a remarkable year of growth, innovation, and leadership, Fluence Corporation earns Frost & Sullivan's 2018 Global Company of the Year Award in the decentralized water and wastewater treatment industry."
Further information can be found at http://www.fluencecorp.com/
Fluence Corporation Ltd