Fluence has announced it received multiple orders from large state-owned enterprises in China and Taiwan. In total, the orders are worth US$4.6 million, with the supplier of wastewater and reuse treatment products predicting more business to follow.
The company recently reported its first $1.4 million EBITDA positive quarter for the end of December, off the back of total revenue in FY20 of $96.5 million, up 58% from $61.0 million in FY19. Despite the improving numbers, Fluence's market cap currently sits at only $150 million, despite its 14% jump following Thursday's announcement.
First Volume Order From Three Gorges
Fluence was awarded its first volume contract for the Yangtze River Great Protection Program managed by China Three Gorges Group Corporation. The orders are worth an aggregate of US$2.2 million and involve a total of 29 Aspiral MABR units.
Fluence will work with its existing partner to implement treatment systems in 14 towns and rural townships in Ningyuan and Dao counties, Hunan province. Three Gorges’ Yangtze River protection program impacts 11 provinces in China and includes rural wastewater treatment and upgrades to centralized wastewater treatment plants.
China Rail Order - First In China For Wastewater Reuse
Fluence was awarded an additional contract by Beijing China Railway Science New Technology Co. Ltd. The contract worth US$28K for two Aspiral Micro units to treat and reuse wastewater at sites including Beijing. This is the first wastewater reuse project for Fluence in China. Wastewater reuse is a key part of China's "Five Year Plan". The Aspiral Micro was chosen on account of its ability to treat wastewater to the high quality needed for reuse for irrigation, operate remotely, and can be deployed and commissioned rapidly.
First Multi-Unit NIROBOX Order in Taiwan
Finally, Fluence was awarded a US$2.4 million contract to supply three NIROBOX units to drought-stricken Taiwan. Fluence was able to leverage a proven product and quick turnaround time to secure the order. Commissioning is expected in May 2021. The units will be installed in Taichung and will convert seawater into enough freshwater to meet the needs of up to 30,000 people in central Taiwan.
Commenting on these orders, Fluence Chairman and CEO Richard Irving said: “We believe our MABR family of products, extending all the way from the Aspiral Micro suitable for a cluster of homes, to SUBRE, suitable for central plant upgrades, present the most competitive solutions when top-quality wastewater treatment is required, such as is specified by China’s Class 1A standard. We look forward to tackling these and future projects together. China’s latest Five Year Plan (2020 - 2025) for the first time specifies wastewater reuse targets ranging from 25–35% in water-stressed regions which is anticipated to require significant deployment of new and upgraded treatment. Based on China Ministry of Housing Data, this represents a US$4 billion market opportunity over the next 4 years assuming new or upgraded treatment is needed to achieve these targets. The proven reliability of our NIROBOXTM solutions is evidenced by the 115 units installed worldwide. This order reinforces our recent decision to focus sales of NIROBOX in South East Asia, in addition to the Middle East and North America. Despite global logistical challenges, Fluence won the order by providing the best solution in the fastest delivery time."