Fluence Corporation Limited (ASX: FLC) announced about EPC contract of US$74 Mn to design and construct a 40,000-meter cube /day seawater desalination plant, with infrastructure designed and built for future capacity expansion to 80,000-meter cube /day. The contract has been received by the Egyptian joint venture partnership between Fluence’s The International Co. for Water Services & Infrastructure (IWSI) and Hassan Allam EPC.
Fluence through IWSI will act as the technology provider designing the process and supplying the pre-treatment, reverse osmosis skids, post-treatment equipment, and the start-up and commissioning of the plant for a total contract share of US$20 Mn. Hassan Allam EPC will provide the local works including the marine design and execution of the intake and outfall.
The plant after completion will serve under construction New Mansoura city which is at Egypt’s northern coast on the Mediterranean Sea. As per the expectation, during the inauguration, the new city will have a population of around 250,000 people. Keeping in mind the growth expectation, the plant will eventually be expanded to 80,000 m3 /day capacity. It is expected to become operational after 18 months.
Fluence MD and CEO Henry Charrabé stated that the New Mansoura plant would be among the more substantial desalination plant references for Fluence to date and, on expansion, it will be one of the largest in all of Egypt. This contract along with its existing US $7.6 million NIROBOX™ Smart Packaged desalination plant order IWSI secured in Egypt in October 2018, will reinforce the company’s growth strategy. They find Egypt market as one of the most promising desalination markets in the world, and they would be deploying both Smart Packaged Solutions and custom engineered solutions to meet the growing water requirements.
In a previous announcement, FLC unveiled its SUBRE submerged membrane aerated biofilm reactor solution with two configurations, i.e. as a new greenfield plant and retrofit upgrade. The SUBRE modules are immersed in existing chambers, it improves effluent quality, and saves cost & energy, instead of enlarging current plants and building new basins.
About the company: Fluence Corporation Limited is Australian listed leading decentralized water and wastewater treatment solution provider. It operates in North America, South America, Europe, and the Middle East. It is also expanding its operation in the Chinese market.
In its quarterly report, it reported an increase in its revenue by 73% pcp to US$43.7 Mn in Q4FY18. It reported a gross profit of US$16.2 Mn in Q4FY18 including accounting benefits of US$7.1Mn reversal of onerous contract provision from the previous year.
At the time of writing (20 March 2019, AEST 02:18 PM), the share price of the company is trading at $0.420, up 6.329% intraday. The market capitalization of FLC stood at ~$212.26 Mn. Its day's high price was noted at $0.435 and days low at $0.410, with average daily volume of more than 1,328,832. Its 52 weeks high was reported at $0.575 and 52 weeks low at $0.29 with average volume of ~836,433. Its absolute return for 5 years, 1 year, and 3 months are 295%, -4.82%, and 19.70%, respectively.
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