Xebec to release financial results, warns of reduced revenues
Xebec launched and delivered its first fully containerized and standardized BGX Biostream™ unit for small-scale biogas upgrading applications in 2020.
Oil & Gas
MONTREAL — Xebec Adsorption Inc., a provider of clean energy solutions, announced on Mar. 12 that the Company is in the process of finalizing its financial results for the fourth quarter and year ended December 31, 2020, which will be released on March 25th, 2021. As a result of extraordinary items in its Cleantech business segment and due to the impact of the Covid-19 pandemic, Xebec no longer expects to achieve its previous full year 2020 revenue guidance of $70 to $80 million. While the financial review remains ongoing, revenues for the full year are expected to be approximately $57 million. This increase is mainly due to transaction expenses, provision for bad debt, and an accelerated amortization amount of capitalized R&D expenses.
Xebec launched and delivered its first fully containerized and standardized BGX Biostream™ unit for small-scale biogas upgrading applications in 2020. The Company expects that this new product will lead to more predictable cost management and improved gross margins for RNG projects going forward. Xebec continues to see a positive backdrop for the industry as organizations and governments around the world aim to manage organic waste more effectively and decarbonize their natural gas supplies.
Since Q4 2020, Xebec has some strategic investments to better position the company for long-term growth. This includes the launch of its hydrogen strategy and on-site oxygen and nitrogen generation business, with the acquisitions of HyGear and Inmatec, as well as the continued growth of its Cleantech Service Network in North America.
As a result of Xebec’s recent acquisitions and the increasingly diversified nature of its revenues, the company expects that approximately 20% of its revenues will come from its renewable natural gas business in 2021. The remainder of revenues are expected to come from hydrogen generation, recurring 15-year Gas-as-a-Service contracts, the Cleantech Service Network and industrial compressed air and gas products.