Fluence Corporation Limited (ASX: FLC) is an industrial sector company. FLC is engaged in the business of providing delivery of cost-effective decentralised water and reuse solutions for business and communities in the world. The company was officially listed on ASX on 18th Dec 2007.
Today, on 13th May 2019, via ASX release, Fluence Corporation Limited declared that it has entered in a US$10 million agreement for the design, engineering and construction of 12,000m3 per day seawater desalination plant for one of the world’s leading steel producers. The company reported that the location of the plant is in the customer’s steel facility in eastern Brazil. FLC is expected to commence the construction of custom engineered solution by Q2 2019 and will be fully operational by Q4 2020.
The desalination plant was selected via an international tender process by the customer to highlight water security and less dependency on the local utilities. The largest desalination plant in Brazil will be designed to expand up to 24,000m3 per day to 36, 000m3 per day.
Fluence Corporation Limited reported their results for the quarter ended March 2019. Its quarterly bookings of US$223 million in the quarter ending March 2019, reflected strong sales of Aspiral™ in China, along with the custom engineered solutions wins in Egypt and Ivory coast and company’s first commercial orders of SUBRE.
The company remains focused on recurring revenue opportunities. FLC reported a recurring revenue base of US$14.7 million at 31st March 2019, which includes revenues from the Bahamas, Peru and San Quintin of US$1.7 million, US$3 million and US$10 million, respectively. The company expects the amount of US$0.9 million to flow into revenues as some project construction is completed in 2019.
The company’s cash and cash equivalents stood at US$24.3 million at the quarter ended 31st March 2019. FLC projected an additional cash inflow of US$3.5 million in Q1, which was linked to the first disbursement of funds from the North American development bank for the debt facility for the San Quintin Project.
On the Cash flow statement front, the net cash used in operating activities stood at US$14.7 million, more than a forecasted number for Q1 2019 of US$10.1 million. This was due to a US$5 million delay in the customer collections. The company’s operating expense was in line with the previously provided estimate.
Subject to the current business contract, the company is expecting cash receipts from customers of US$24.1 million and cash payments of US$30.6 million, which will result in an expected net operating cash outflow of US$6.5 million for Q2 2019. FLC expects net cash used in operating activities will continue to decrease in the subsequent quarters.
The revenues of Smart Products Solutions is expected to be greater than US$44 million, reflecting the growth of more than 100% Y-o-Y.
At market close on 13th May 2019, the stock of FLC was trading at $0.465 per share, with a market capitalisation of $236.45 million. The stock has generated returns of 31.34% for the three months, 15.79% for six months and 2.33% for the one-year period.
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