November 15, 2021 07:00 ET | Source: Questor Technology Inc. Questor Technology Inc.
Calgary, Alberta, November 15, 2021 (Global News Agency)-Questor Technology Inc. ("Questor" or "Company") (TSX-V: QST) today announced its financials for the third quarter of 2021 And business performance.
(Unaudited, expressed in Canadian dollars, except per share and unit data)
Questor’s unaudited condensed consolidated financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2021 are available on the company’s website www.questortech.com and SEDAR website www.sedar.com Check it out.
At the 26th Climate Conference of the United Nations Conference of the Parties ("COP"), more than 100 countries including the United States, Canada and the European Union signed a new pledge to reduce methane emissions by 30% from 2020 levels By 2030. These countries that have signed the global methane pledge account for 70% of the global economy and account for nearly half of anthropogenic methane emissions. Inger Anderson, Executive Director of the United Nations Environment Programme ("UNEP"), said: "Reduce methane is our most powerful means of mitigating climate change in the next 25 years, and it is also a complement to the necessary efforts to reduce carbon dioxide." A scientific report stated that in addition to drastically reducing carbon dioxide ("CO2") emissions, the "strong, rapid and sustained reduction" in methane emissions could have a rapid impact on the climate. People are paying more and more attention to methane as a way to buy extra time to deal with climate change. All these concerns have led to increased interest in our technical solutions. Our efficiency and ability to handle methane emissions are world-renowned. Our 99.99% combustion efficiency obtained ISO 14034 certification means that our customers can feel comfortable because we can not only eliminate methane, but also other harmful air pollutants. Many countries in the world are enacting new regulations not only to address climate change, but also to improve air quality, especially the impact on marginalized communities that usually live near industrial facilities.
As proof of the increased interest, Questor received two large orders for high-reactor incinerators from companies operating in the Montene area in northeastern British Columbia this quarter, with an order value of US$3.9 million. We expect that as producers build production capacity before LNG Canada is expected to start in 2025, substantial investments in this area will continue. In addition to seeing an increasing number of orders in the North American oil and gas sector during the quarter, Questor continues to enter markets outside of North America and the energy sector. After this quarter, the company has reached an agreement with OiLSERV Oilfield Services (British Virgin Islands) Co., Ltd. to actively cooperate and conduct joint market surveys on the potential of selling the company's products in specific regions of the Middle East. The company will cooperate with OiLSERV to establish mutually beneficial sales targets and negotiate commercial terms.
We continue to see companies in multiple industries becoming more and more interested in our technology, and they want to reduce harmful emissions.
We are pleased with the continuous improvement in activity levels and the strengthening of orders, but please note that most of the impact of the market improvement will have on Questor in 2022.
During the quarter, Questor continued to work with government and industry partners to improve existing regulations and develop new technologies to strengthen and diversify our products and services to support our customers’ sustainability goals:
We are pleased with the recent increasing focus on methane, because this is one of the key areas for reducing emissions if we are to succeed in meaningfully reducing greenhouse gas ("GHG") emissions on a global scale. The global focus on methane as a "low-hanging fruit" for mitigating global warming is arousing great interest in our technology. Many jurisdictions and companies have begun to focus on methane emission reduction opportunities in order to achieve their emission reduction targets and net zero commitments. We are recognized globally as a cheap and reliable way to eliminate methane emissions and reduce the carbon footprint of oil and gas activities. The ever-evolving voluntary carbon market has created a strong and sustainable business case to reduce methane emissions and generate a healthy return on investment through thermal power generation.
Questor provides a series of low-cost, proven and reliable solutions to help the energy and other industries achieve emission reduction targets. With the continuous development of our waste heat power generation products, in addition to meeting regulatory requirements, we are also positioning our customers to obtain returns from these emissions reduction investments.
As of September 30, 2021, Questor continues to maintain a strong financial position, with $15.3 million in cash and $17.8 million in working capital. As we continue to see the market recovering and moving forward, this strong financial situation has laid the foundation for growth investment.
The company's financial performance continues to be affected by the impact of COVID-19 on the global economy. For the three months ended September 30, 2021:
Research and development projects are very important to the company's overall strategy to diversify products and services, provide clean, cost-effective solutions to reduce greenhouse gases, and support customers to achieve the sustainable development goal of net zero emissions. This quarter:
The impact of COVID-19 continues to affect the global economy and the company's operations and financial performance. It is difficult to predict how long these market conditions will continue to have a negative impact on the business, but as the recent discussions at the COP26 climate summit in Glasgow, Scotland and the recently issued regulations on reducing methane pointed out, the global impact on reducing methane emissions Attention is increasing by the US Environmental Protection Agency. The company is ready to meet any growing demand through its proven cost-effective technical solutions.
The company saw some minor signs of recovery during the quarter, including restarting jobs that were put on hold by customers before restarting, a small increase in rental utilization, and the sale of two high-reactor incinerators to be delivered in 2022. The company is optimistic that as methane emission-intensive industries continue to recover from the pandemic, these companies will refocus their efforts to achieve emission reduction commitments, which is expected to lead to an increase in the company's clean technology demand.
In addition, the company continues to promote its strategic initiatives by strengthening the strength of the sales and engineering teams, and further promoting R&D activities in product development and commercialization. These efforts will enable the company to diversify into new markets, expand remaining thermal power generation products, and build digital capabilities focused on emission platforms, thereby achieving reliable emission reduction quantification for its customers.
The company sees signs of increasing demand for its products in this market. As mentioned above, two incinerators were sold last quarter with a total value of 3.9 million U.S. dollars and will be delivered in 2022. Both devices will be specifically designed to safely handle hydrogen sulfide in compliance with the stringent emission regulations of northeastern British Columbia.
In October, the Canadian government announced that Canada supports the global methane pledge, which aims to reduce global methane emissions by 30% by the 2030s from 2020 levels. In addition, at the COP26 climate summit, the Canadian government announced that it will set a cap on Canada's oil and natural gas emissions by 2025. The company will continue to work with potential customers in Canada to provide products and services to help them meet their needs. Emission reduction goals.
Since the company's previous customers were concentrated in the oil and gas market, the US market has proved difficult in the past year. However, as the energy industry and drilling activities continue to recover, the company expects a rebound in demand for its services.
In addition, the US Environmental Protection Agency recently issued new regulations specifically for methane emission reduction. These rules require U.S. companies to focus on reducing methane opportunities in order to achieve emission reduction targets. Questor provides an inexpensive, proven, and reliable way to reduce its carbon footprint, and has positioned its operations, sales, and marketing teams in the United States to be ready to take advantage of this anticipated increase in demand after the implementation of these new rules.
There is increasing attention and recognition around the world that reducing methane is a key part of achieving emission reduction targets. The company has recently been discussing and exploring opportunities and needs for its products in other countries such as Australia, the Middle East and Mexico.
During the quarter, the company continued to work hard to promote the final commissioning of three waste heat power generation facilities in Mexico. However, COVID-19 continues to affect the global supply chain and causes further delays in obtaining the necessary equipment and personnel on-site to complete the work. The company is working with customers to develop a revised project plan to restart commissioning in the fourth quarter of 2021. In view of the country’s aggressive goal of addressing energy emissions, the company continues to be optimistic about further business in this area.
After this quarter, the company has reached an agreement with OiLSERV Oilfield Services (British Virgin Islands) Co., Ltd. to actively cooperate and conduct joint market surveys on the potential of selling the company's products to energy companies in specific regions of the Middle East. The company will cooperate with OiLSERV to establish mutually beneficial sales targets and negotiate commercial terms.
Questor Technology Inc. was incorporated in Canada under the Business Company Act (Alberta). It is an environmental emission reduction technology company established in 1994 with operations in North America. The company focuses on clean air technology to safely and cost effectively improve air quality, support energy efficiency and reduce greenhouse gas emissions. The company designs, manufactures and services efficient exhaust gas cleaning combustion systems that can destroy harmful pollutants in the exhaust gas stream, including methane, hydrogen sulfide gas, volatile organic hydrocarbons, harmful air pollutants and BTEX (benzene, toluene, ethyl Benzene and xylene) gas. 99.99% efficiency. This enables customers to meet emission regulations, reduce greenhouse gas emissions, solve community problems, and improve safety on industrial sites. The company also has proprietary thermal power generation technology and is currently targeting new markets, including landfill biogas, syngas, engine exhaust, geothermal and solar energy, waste heat from cement plants, and various oil and gas projects. The company is also researching and developing data solutions to provide an integrated system that incorporates all available emission detection data and demonstrates how to use Questor's clean combustion and power generation technology to help customers achieve zero emissions goals.
The company's common stock is traded on the TSX Venture Exchange under the symbol "QST". The address of the company and registered office of the company is 2240, 140-4 Avenue SW Calgary, Alberta, Canada, T2P 3N3.
QUESTOR is traded on the TSX VENTURE exchange under the trading code "QST".
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