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29 April 2021
Q1 2021 Highlights
Melbourne, New York 1 April 2021
Fluence Announces Key Orders In China and SE Asia
Fluence Secures First Volume Order From Three Gorges
Fluence Corporation Limited (ASX: FLC) is pleased to announce that it has been awarded its first volume contract for the Yangtze River Great Protection Program managed by China Three Gorges Group Corporation (“Three Gorges”). The orders with Three Gorges are worth an aggregate of US$2.2 million and involve a total of 29 Aspiral MABR units. Fluence will work with its existing volume partner, Aerospace Kaitian Environmental Protection Technology Co., Ltd.(“Kaitian”), as well as Yangtze River Ecological Environmental Protection Group Co., Ltd., a subsidiary of Three Gorges, to implement treatment systems in 14 towns and rural townships in Ningyuan and Dao counties, Hunan province. Three Gorges’ Yangtze River protection program impacts 11 provinces in China and includes rural wastewater treatment and upgrades to centralized wastewater treatment plants.
China Rail Order – First In China For Wastewater Reuse
Fluence is also pleased to announce that it has been awarded an additional contract by Beijing China Railway Science New Technology Co. Ltd., wholly owned by China Academy of Railway Sciences Cooperation Limited (“China Rail”). The contract is worth US$28K for two (2) Aspiral Micro units to treat and reuse wastewater at sites including Beijing. This is the first wastewater reuse project for Fluence in China. Wastewater reuse is a key part of the current Five Year Plan.1 Aspiral Micro was chosen on account of its ability to treat wastewater to the high quality needed for reuse for irrigation, operate remotely, and can be deployed and commissioned rapidly.
Fluence Secures First Multi-Unit NIROBOXTM Order in Taiwan
Finally, Fluence is pleased to announce that it has been awarded a US$2.4 million contract to supply three (3) NIROBOXTM units to drought-stricken Taiwan. Fluence was able to leverage a proven product and quick turnaround time to secure the order. Commissioning is expected in May 2021. The units will be installed in Taichung and will convert seawater into enough fresh water to meet the needs of up to 30,000 people in central Taiwan. Fluence partner ADE Corporation facilitated the order from the Water Resources Agency, which is part of the Ministry of Economic Affairs of Taiwan.
26 February 2021
Appendix 4E - 31 December2020
Net tangible assets (per share) $0.04 (31 December2020) from $0.05 (31 December2019)
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Cash and cash equivalentsat 31 December2020 amounted to US$31million (2019:US$22million).
In addition, other financial assets at 31 December 2020 included short term deposits of US$15million (2019:US$5million). As at 31 December 2020, the Group had borrowings of US$22million (2019:US$3million). Following the 2020 results, Fluence plans to continue its current growth strategy. Smart Solutions revenue in 2019 was US$26million. In 2020 this grew to US$32million and is forecast to reach US$35- US$50million in 2021.
Q4 2020 Highlights
Melbourne, New York 13 March 2020
Fluence Corporation Limited (ASX: FLC) is pleased to announce that it has entered into a new strategic market segment and new province with an Aspiral TM sale to Beijing China Railway Science New Technology Co. Ltd. for a project involving the Chinese Railway System in Inner Mongolia.
Utilizing Fluence’s proprietary MABR technology, this Smart Products Solution consists of an Aspiral™ L3 unit to treat an initial 35m 3/day of highly concentrated wastewater. The wastewater is unusually high in nitrogen, similar to Fluence’s Hubei highway Systems project s and, once treated, will meet standards equivalent to China ’s Class 1A effluent requirement . Fluence’s MABR technology has demonstrated its ability to comply with the required effluent standards in previous extreme cold temperatures, while maintaining treatment fidelity.
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Business Update for Quarter Ended 31 December 2019 (Q4 2019)
Fluence Achieves Financial Close for Ivory Coast Project
Melbourne, New York 8 January 2020
Fluence Corporation Limited (ASX: FLC) is pleased to announce that Financial Close on the €165 million (US$182 million) Ivory Coast water treatment plant (Project) has been achieved with the execution of the financing agreement by the Ministry of Finance of Ivory Coast (the Customer) and the Israeli Discount Bank (IDB). IDB was supported with export credit insurance from the Israeli Export Credit Agency ASHRA.
Following Financial Close, and upon meeting any outstanding conditions precedent, Fluence will start construction to fully erect and commission the 150,000 m3/day surface?water treatment plant over the next 24 months.
Having achieved Financial Close on the Project, Fluence Managing Director & CEO Henry Charrabé said: “We are very pleased to have reached this immensely important milestone for Fluence. The continued focus and cooperation with the teams from the Ministry of Finance and Ministry of Hydraulique in Ivory Coast, as well as with ASHRA and IDB, have allowed us to meet this objective. With planning work on the Project now largely completed, we can fully focus on moving towards construction commencement of this important turnkey water treatment plant.”
Achievement of Financial Close allows Fluence to immediately recognize no less than US$20 million (€18 million) of revenue for work that has already largely been completed. The delay in signing of the financing agreements may result in a short?term deferral of revenue that was expected to be recognized in 2019. However, there is a possibility that such revenue may still be able to be recognized, which would support Fluence’s ability to achieve an EBITDA positive quarter in Q4 2019.
Fluence Receives First Bulk Follow-On AspiralTM Order from Kaitian in China
Melbourne, New York 30 December 2019
Fluence Corporation Limited (ASX: FLC) is pleased to announce that it has secured a follow-on AspiralTM order from Aerospace Kaitian Environmental Technology Co., Ltd (“Kaitian”) with a value of more than US$3 million. Shipments are expected to begin immediately and will extend into early 2020.
This first bulk order from Kaitian for a total of 15 wastewater treatment plants is comprised of 27 Aspiral™ L3 units and 18 Aspiral™ L4 units, which will collectively serve over a dozen towns and rural townships in Anhui Province in China. This order follows the Memorandum of Understanding (“MoU”) signed with Kaitian in August of 2019 to satisfy the expected capacity needs of 40,000 m3 /day or more through the end of 2021. Subsequent to the successful installation of the Xeilingang project in Huoqiu County for Kaitian, this particular volume order will deliver a combined capacity of 8,100 m3/day of Class 1A effluent.
Fluence Receives US$5 Million Contract for a Containerized System for Industrial Client in Argentina
Melbourne, New York 12 November 2019
Fluence Corporation Limited (ASX: FLC) is pleased to announce the execution of a
contract denominated in United States Dollars with a value exceeding US$5 million to provide a 10,320 m3/day pre-engineered and containerized Smart Products Solution water treatment system to a greenfield lithium mining project in Argentina. The system will combine proven technologies, such as ultrafiltration, high efficiency reverse osmosis, ion exchange, and enhanced sedimentation to treat well water and provide filtered, demineralized, high purity, and potable water. Delivery of the system is expected in late 2020, with commissioning to occur in early 2021.
Fluence Receives US$3 Million Follow-On AspiralTM Order from ITEST
Melbourne, New York 01 November 2019
Fluence Corporation Limited (ASX: FLC) is pleased to announce the execution of a US$3 million follow-on order from a subsidiary of ITEST. The order is comprised of 10 AspiralTM S1 units, 18 AspiralTM L4 units and auxiliary equipment, bringing the total capacity of this purchase order to 1,950 m3/day. The units will be deployed at service stations and toll stations along highways in Hubei province as contemplated in the original agreement signed in October 2018. Shipments will begin immediately and are expected to extend into early 2020.
Fluence launches Share Purchase Plan
Melbourne, New York - 28 October 2019
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The SPP Offer allows Eligible Australian Shareholders (including retail shareholders) to subscribe for up to
the Maximum Application Amount in respect of each Eligible Shareholder (being an amount up to A$30,000) worth of new fully paid ordinary shares in Fluence , without paying brokerage costs.
The per share offer price under the SPP Offer will be A$0.44, being the per share issue price of the sharesissued under the Placement. The SPP is capped at raising up to a maximum of A$6.0 million under the SPP Offer. If applications for s hares under the SPP Offer exceed A$6.0 million, Fluence may , in its discretion ,undertake a scale -back to the extent and in the manner that it sees fit.
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Applications can be made to purchase a parcel of Shares in respect of a minimum amount of A$5,000 with A$1,000 increments thereafter.
Business Update
Smart Products Solutions
Pre-engineered Smart Products Solutions revenue was US$7.3 million in Q3 2019, representing 189% Y/Y growth. Through the first nine months of 2019, pre-engineered Smart Products Solutions revenue was US$12.9 million, representing 122% Y/Y growth compared to US$5.8 million through the prior year comparable period.
We reaffirm our revenue guidance of US$26 million from pre-engineered, standardized Smart Products Solutions for 2019, which implies segment revenue of US$13.1 million in Q4.
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Recurring Revenue and Aftermarket Sales
We are pleased to announce that our project in Bimini, Bahamas, has passed the customer performance test, met all specifications in the contract, and is awaiting final regulatory approval to begin providing water to the customer.
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Q3 2019 Cash Flow Report
Cash and Cash Equivalents were US$11.0 million at 30 September 2019 (which excludes net proceeds of the recent capital raising that occurred after quarter end). Net Cash Used from Operating Activities in Q3 2019 4 was US$4.8 million, approximately US$1.2million better than forecast in the 30 June 2019 Appendix 4C. Revenue in Q3 was US$13.8 million.
Based on current contracts, the Company expects US$22.0 million of cash receipts from customers during Q4 2019 and cash payments of US$28.0 million, resulting in an expected net operating cash outflow for Q4 2019 of US$6.0million.
Reaffirming 2019 Outlook
Fluence reaffirms its previously communicated expectations for 2019 as follows:
Fluence Receives Multimillion Dollar Contract for Lithium Mining ApplicationMelbourne, New York 24 October 2019
Fluence Corporation Limited (ASX: FLC) is pleased to announce the execution of a contract to provide alithium brine treatment solution for a battery-grade lithium carbonate manufacturer located in Argentina. The project will utilize Fluence’s ion exchange technology to remove naturally occurring contaminants from lithium brine, resulting in the highest product quality for the customer. The project is expected to be completed before the end of 2020. The contract value exceeds Fluence’s disclosure threshold of US$3 million.
Commenting on this award, Fluence Managing Director & CEO Henry Charrabé said: “We are pleased tocontinue to expand our solutions capabilities into large and growing industries such as lithium production. Fluence engineers were able to offer the client a custom engineered solution that maximizes the removal of contaminants while minimizing the removal of valuable lithium that will be used to create the final product. Argentina has some of the most significant lithium brine resources globally and this will be Fluence’s fourth lithium project there in just the last couple of years. We expect our execution of this project will lead to future business opportunities in the lithium industry.”
Fluence Signs Additional China Volume Commitment for Aspiral TM and SUBRE and Provides Update on Ivory Coast Project.
Melbourne, New York 24 September 2019
Fluence Corporation Limited(ASX: FLC) has signed an Investment Cooperation Agreement (the “Agreement”) with The People’s Government of Xinglongtai District (a district under the administration of the City of Panjin ) and Liaoning Huahong New Energy Co., Ltd. (“Liaoning Huahong”) for:
The Agreement will make Fluence the preferred supplier for wastewater treatment equipment for Liaoning Huahong.
The manufacturing of Fluence’s proprietary MABR modules will continue exclusively in Fluence’s wholly owned factory in Changzhou, Jiangsu Province.
Liaoning Huahong expects to deploy Fluence’s MABR products to meet the growing wastewater treatment needs of Panjin City, Liaoning and surrounding provinces . This Agreement follows the first commercial SUBRE order in China from Liaoning Huahong for the 3,000 m 3/day greenfield wastewater treatment plant being constructed by the Panjin City Government earlier this quarter.
Fluence Receives Emergency Order for Five NIROBOX TM in the Middle East
Melbourne, New York 23 September 2019
Fluence Corporation Limited(ASX: FLC) is pleased to announce that it has received an order for five (5) NIROBOX TM from a customer in the Middle East for an emergency application for drinking water. These units will be used for seawater desalination in a region with limited access to fresh, potable water. The units are expected to ship within two weeks and be recognized as revenue in Q4 2019.
Commenting on this award, Fluence Managing Director & CEO Henry Charrabé said: “This win further validates our view that decentralized pre-engineered Smart Product Solutions are the future of the water treatment industry. The ability to rapidly build, ship, and install these units, which will provide 5,000 m3per day of drinking water,was a key differentiating factor in Fluence’s value proposition to the customer, as competitive centralized solutions would require significantly longer lead time to deliver drinking water. This is another indicator that Fluence is increasingly recognized as a leader in the fast-to-deploy, standardized, decentralized water and wastewater treatment solutions segment around the globe. The Middle East is a key target market for our NIROBOX TM product and we are placing greater emphasis on growing orders in this region.”
Fluence Signs First Commercial SUBRE Order in China
Melbourne, New York 19 August 2019
Fluence Corporation Limited (ASX: FLC) is pleased to announce that it has executed a contract for the delivery of a 3,000 m3/day SUBRE system (the submerged version of its proprietary MABR technology) in Panjin, China. This represents Fluence’s first commercial SUBRE order in China and the first order originated by partner Liaoning Huahong New Energy Co., Ltd. (“Liaoning Huahong”). The units will be installed in a greenfield wastewater treatment plant being constructed by the Panjin City Government.
This project will consist of 28 SUBRE units , each of which contains 3 of Fluence’s proprietary Membrane Aerated Biofilm Reactor (“MABR”) modules. Delivery is expected in the fall with an anticipated completion date by year - end 2019. Importantly, the SUBRE units will help the Panjin City Government meet the stringent discharge requirements under China’s Class 1A wastewater discharge standards
New York, Melbourne, 30 July2019
Fluence June 2019 - Quarterly Report
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Smart Product Solutions
Smart Product Solutions revenue was US$5.6millionin H1 2019, representing 74% Y/Y growth.
Recurring Revenue and Aftermarket Sales
We have completed construction on our project in Bimini, Bahamas,whichisnowin the final stages of commissioning.
Ivory Coast
We remain on track to reach financial close on the €165 million Ivory Coast contract in Q3 2019.
Since signing the commercial contract in Februarythis year, we have made significant progress with the financing parties towards meeting pre-conditionsto financial closeand continue to expect up to US$20 million of revenue in 2019, US$80 million in 2020, and the remainder in 2021.
San Quintin, Mexico
Following ongoing discussions through Q2 2019,it became apparent that our minority equity partners in the San Quintin, Mexico project would likely be unable to meet their equity capital commitments. The minority equity partners’ funding issues have delayed the project’s first disbursementfrom the project finance facilityand negatively impacted revenue in Q2 by approximately US$4.5 million
Generate Capital Term Loan
Fluence and Generate Capital have executed a term sheet and are in advanced discussion regarding a term loan facility for up to US$40 million with funds earmarked for specific projects, such as the equity portion of San Quintin (outlined above), and the short-term working capital needs in China and Ivory Coast. Securing the loan is subject to customary conditions, including completion of due diligence and execution of definitive documents, which we expect to occur late in Q3 or early Q4.
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