Anaergia | Our July Review

Anaergia Inc (TOR: ANRG) is a Canadian based company, with their focus on clean energy, fertiliser, recycling water from waste streams, and the conversion of waste into resources, such as biogas. They offer a range of in depth resource recovery technologies for the municipal, industrial, commercial, and agricultural markets. Recent activity includes a deal with Eqtec to build a waste-to-energy plant in Merseyside, UK - with the recovered organics from 80,000 tonnes of municipal waste turned into biomethane per year, which is then injected into the national gas transmission system.

(Source: Anaergia Inc)

The positives of Anaergia’s income statement is they achieved a record revenue of C$153.58m in FY2021, which has increased incrementally since their FY2018 revenue of C$63.54. Their net income has improved from a (C$22.69m) loss in FY20 to a (C$11.21m) loss in FY21, while also having previously achieved a net profit of C$8.72m in FY2019, before covid onset.

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Their FY21 net income margin was a (7.3%) loss, edging towards break even. According to their most recent Q1 for FY2022 released May 12th, Anaergia saw a revenue of C$40m and a net loss of (C$9.20) for the quarter - representing a worsening net income margin of (23%) loss.

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The positives of Anaergia’s balance sheet is their most recent quarter posted record total assets of C$709m, however, their total debt also increased to C$235m - equalling a debt-to-assets margin of 33.1% (higher than their FY21 figure of 31.4%). Cash levels for the current quarter have decreased to C$50m from a recent high of C$170m in last year's Q2, however, they’re still up YoY by C$16m.

When comparing FY19 - FY21, both total assets and total cash have increased significantly each year, while debt has been fairly controlled, with a similar figure to the current levels of C$218m in FY19.

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Anaergia's next earnings is released on approximately Sep 06, 2022.