Pacific Green Technologies Reports Revenue Growth to $3.66 Million, Net Loss of $7.49 Million for Six Months Ending September 30, 2024

Pacific Green Technologies Inc. reported its financial results for the six months ending September 30, 2024, revealing total revenues of $3.66 million, a significant increase from $2.35 million during the same period in 2023. The company’s revenue growth was primarily driven by a new product line, which contributed $725,000 in sales, alongside service revenues that rose to $2.94 million from $2.35 million year-over-year. Despite this increase in revenue, the company recorded a net loss of $7.49 million, compared to a loss of $52,000 in the prior year, reflecting ongoing operational challenges and increased expenses.

The financial performance indicates a notable shift in the company's operational landscape. Total expenses for the six months reached $7.55 million, down from $14.04 million in the previous year, largely due to reduced management and consulting fees. However, the company faced increased costs in areas such as salaries and wages, which totaled $1.73 million, compared to $2.44 million in the prior year. The overall gross profit for the period was $165,000, a recovery from a gross loss of $464,000 in the same period last year, highlighting improved efficiency in product and service delivery.

Strategically, Pacific Green Technologies has made significant organizational changes, including a realignment of its reportable segments to focus on Battery Energy Storage Systems (BESS) and Environmental Technologies. This restructuring aims to enhance operational efficiency and better align with market demands. The company is also actively pursuing geographic expansion, particularly in Australia and Italy, where it has several BESS projects under development. As of September 30, 2024, the company reported $14.45 million in projects under development, up from $8.47 million in March 2024, indicating a robust pipeline for future growth.

Operationally, the company has seen an increase in customer engagement, with a notable rise in accounts receivable, which reached $1.35 million, up from $1.12 million in March 2024. The total cash and cash equivalents decreased to $2.58 million from $4.22 million, reflecting cash outflows related to project development and operational expenses. The company’s total liabilities increased to $36.59 million, up from $22.46 million, primarily due to new loans and increased accounts payable, which rose to $11.87 million from $6.80 million.

Looking ahead, Pacific Green Technologies is optimistic about securing additional funding to support its ongoing projects and operational needs. The company is in discussions to establish a larger development loan facility, anticipated to be approximately AUD 50 million, which would enhance its capacity to meet obligations and accelerate project development. Management remains confident in the value of its project pipeline and is actively working to finalize sales agreements for key projects, including the Limestone Coast West BESS project, which is expected to generate significant cash flow in the coming fiscal year.