ProSep announced its financial results for the three and twelve-month periods ended December 31, 2009. All amounts are reported in Canadian dollars unless otherwise stated.
Selected highlights of the year and subsequent events:
- Reported revenues of $41.4 million for the year ended December 31, 2009 compared to $51.6 million recorded for the same period ending December 31, 2008.
- Reported second consecutive annual positive EBITDA, at $0.140 million for the year ended December 31, 2009 compared to $3 million in 2008.
- Affected by non-cash items, Company reported net loss of $13.9 million compared to a net loss of $1.6 million in 2008. Excluding non-cash goodwill impairment, debt conversion and settlement, the 2009 loss would have stood at $5.3 million. The difference is principally explained by lower revenues in 2009.
- Strengthened financial position and provided additional liquidities by converting $8 million of principal amount of indebtedness into equity and subsequently completed a $5 million rights offering to shareholders.
- Ended the year with a sales backlog of $12.5 million, rebuilt to $ 16.6 million at the end of January 2010.
- Successful commissioning a new 55,000 square foot assembly shop in Houston, doubling the Company s production capacity.
- Strengthened South East Asian operations and gained an impressive share of the Malaysian offshore gas treatment processing market and introduced the Company s produced water offering, achieving 225% revenue growth in 2009.
- Expanded presence in the South American gas processing market by concluding the sale of the Company s largest gas processing system sold to date.
Commercial and technological developments:
- Launched a new complementary line of produced water treatment products.
- Received important industry recognition for the ProSalt, a compact and highly efficient crude desalting technology.
- Received $1.4 million from industry partners Total, Statoil and ConocoPhillips for the final phase of development of a new gas dehydration technology with potential future subsea applications.
- Achieved promising results from field trials of the Sorbloc, a revolutionary biodegradable flocculant to treat produced water and capable of removing a full spectrum of harmful components including heavy metals.
- Continued qualification process of several new technologies in the Middle-East with potentially interesting near term commercial opportunities.
- Ranked Deloitte s fastest growing technology company in Canada, twelfth in North America and received the coveted Leadership and Green Technology awards.
"Through a challenging recessionary business environment in 2009, ProSep successfully achieved several milestones. We completed a thorough balance sheet restructuring, providing the Company with necessary working capital in preparation for growth. After a difficult start in 2009, we saw our backlog return to growth during the second half of the year. Finally, we made significant progress with several of our proprietary technologies, setting the stage for market introduction in 2010 of two promising solutions for produced water treatment and gas dehydration," said Jacques L. Drouin, President & CEO of ProSep Inc.