PyroGenesis Canada reports double revenue in Q2 2020, thanks to aluminium Drosrite contract

On Wednesday, July 29, PyroGenesis Canada Inc. reported that its revenue doubled in just three months of the second quarter of 2020 ended June 30, as its contract with waste management company Drosrite International LLC paid off. From C$913,769 in Q2 2019, PyroGenesis’ revenue increased to C$2.1 million over the year. Drosrite sales in the quarter were more than C$1.3 million.

The company’s comprehensive income came in at $C5.2 million, more than quadruple the C$2.3 million it saw a year earlier. Cash in hand also increased at the end of the quarter from C$34,431 at the end of December to C$1.5 million.

PyroGenesis Canada manufactures and sells aluminium dross processing Drosrite systems and technology to Saudi Arabia and other Middle Eastern countries. Aluminium dross is a by-product of smelting, which with treatment can be recycled.

PyroGenesis had signed the deal with Drosrite International LLC (DI) to manufacture and sell aluminium processing Drosrite systms and technology. Under the contract signed, DI had agreed to pay $20 million within the 12 months from the deal signed, and additionally, $2.5 million annually for the two years.

The current backlog of signed contracts is roughly C$28 million, and while that revenue is not officially recognised, the company said it would be able to reliably project considerable profits in the coming quarter and remaining fiscal.

“It is interesting to note that using this revenue recognition method, only C$1.8 million has been recognized under the C$22+ million Drosrite contract for which we have announced receipt of over C$7 million, and which will be completed within the next year,” CEO Peter Pascali said in a statement.

He added, “At this point, we expect that Q3 2020, and the nine months ending September 30, 2020, will both be profitable as will year end results.”

Specifically, PyroGenesis expects earnings per share to be more than C$0.06 for the third quarter and more than C$0.10 for the entire year.