Pacific Green Technologies Inc. reported significant financial improvements for the fiscal year ending March 31, 2024, with total revenues reaching $14.5 million, a 90.4% increase from $7.6 million in the previous year. This growth was primarily driven by a substantial rise in product sales, which increased by 88.4% to $8.9 million, largely due to the recognition of previously postponed contracts for marine scrubbers. Service revenues also saw a notable increase of 93.7%, totaling $5.6 million, attributed to new revenue streams from Battery Energy Storage System (BESS) construction management agreements and growth in marine services.
The company reported a gross profit of $8.7 million for the fiscal year, compared to $1.8 million in the prior year, reflecting a gross profit margin of approximately 60%. This improvement was aided by a significant gain of $42.3 million from the derecognition of BESS project subsidiaries, specifically from the sales of Richborough Energy Park and Sheaf Energy, which were completed during the fiscal year. However, total expenses surged to $34.7 million, up from $12.4 million, largely due to increased management and consulting fees, including substantial bonuses for the CEO.
Operationally, Pacific Green Technologies has made strategic advancements, including the acquisition of a 51% interest in five BESS projects in Italy, which are expected to reach "ready to build" status by 2026. The company also expanded its project pipeline significantly, with a total of 2,000 MW of BESS projects under development, compared to 349 MW in the previous year. This expansion includes major projects in Australia and Italy, positioning the company to capitalize on the growing demand for renewable energy solutions.
Despite these positive developments, the company faces challenges, including a working capital deficit of $8.2 million as of March 31, 2024, and substantial short-term debt obligations totaling $16.7 million due within the next year. The company is actively seeking to secure additional financing, including a proposed AUD 50 million development loan facility, to support its ongoing operations and project development. Management has expressed confidence in their ability to meet these financial obligations, citing strong interest from potential lenders and the anticipated sale of the Limestone Coast West project in the second half of fiscal year 2026.
Looking ahead, Pacific Green Technologies aims to continue its focus on delivering clean energy technologies and expanding its market presence. The company is optimistic about its growth trajectory, driven by increasing demand for BESS solutions and environmental technologies, while also addressing the identified weaknesses in its internal controls over financial reporting. The management is committed to implementing necessary improvements to ensure compliance and enhance operational efficiency.
About Pacific Green Technologies Inc.
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