EverGen sees Q2 revenues slide following RNG acquisition
EverGen Infrastructure, the Vancouver-based company that recently bought 50% equity in a major Canadian RNG development, reported August 23 that Q2 2022 revenues dropped from C$3.35mn to C$2.36mn yr/yr.
Despite lower turnover, EverGen reported a narrower net loss of around C$765,000, versus C$1.3mn in the year ago period. The company has two main businesses, focused on RNG production facilities and organic waste and composting. Costs at the RNG division ran slightly higher in April - June, reaching C$105,000 from C$74,000 one year ago. But revenues rose, from C$331,000 to C$389,000 yr/yr.
Meanwhile the organic waste division erased roughly one third of its revenues, from C$3.02mn to C$1.97mn, as gross margins tumbled from C$2.23mn to C$1.01mn yr/yr.
EverGen is expanding in the RNG space. It has entered a C$1mn agreement to buy 50% of the shares in Project Radius, an Ontario-based RNG development cluster, and says the investment is now fully funded.
Project Radius is EverGen's second big RNG bet in recent months. In July, it announced completion of a C$2.1mn deal for 67% in Grow the Energy Circle, a biogas producer whose facilities will be upgraded following the acquisition to produce RNG, in the region of 80,000-140,000 GJ/yr over two development phases.
In terms of financing, EverGen has secured a $31mn syndicated senior term loan to upgrade and build two existing RNG facilities in its portfolio, at the Valley Biogas and Net Zero Waste Abbotsford projects.