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)
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$50million in 2021.
Q4 2020 Highlights
Some good news ...still worries over China
DISC: I have a small holding
16-Nov-2020: Fluence Strategic Repositioning, Change in CEO
Fluence repositions strategy to focus on MABR and Smart Products Solutions, changes MD & CEO, and reaffirms guidance Summary
Fluence Corporation Limited (ASX:FLC) has become a leader in the decentralized water, wastewater and reuse treatment markets through Smart Products Solutions, including MABR-based Aspiral™ and SUBRE as well as our NIROBOX™ technology. To further leverage and build on this success, Fluence is repositioning its global business to focus on these products in the most attractive market segments with the goal of achieving more rapid, consistent and profitable growth.
--- click on the link above for the full announcement ---
[I do NOT hold FLC shares.]
The Fluence (FLC) Half Year (1st half of FY20) results have not yet been fully audited, so they're taking advantage of the recently announced ASIC relief titled “ASIC Corporations (Extended Reporting and Lodgement Deadlines—Listed Entities) Instrument 2020/451” dated 15 May 2020 and the corresponding ASX Class Waiver issued on 16 June 2020 titled “Extended Reporting and Lodgement Deadlines” to lodge its Half Year Accounts subject to audit review, and defer lodgement of the audit reviewed Half Year Accounts until no later than 30 September 2020. I notice that ISX (iSignThis) did the same thing last week.
Fluence's H1 2020 unaudited numbers were:
Fluence by the Numbers (from page 3 of the Results Deck):
H1 2020 Key Highlights (from page 4 of the Results Deck):
* = All numbers in presentation are USD (US$) if not otherwise stated.
--- click on the links above for more ---
[I'm not keen to hold China-facing smaller companies at this point in time, so FLC and PET (who reported last week - on the 26th) are two companies I am avoiding at the moment.]
08-July-2020: I can see why FLC might look like rediculously good value at around 20 cents per share, but their chart is truly horrible, and they are very exposed to China - who may well still be trying to punish Australia for daring to ask for an inquiry into the origins and early response to COVID-19. I have been out of FLC for a long time now, and haven't been following them very much. I also removed them from my Strawman.com scorecard some time ago because I saw little reason why their SE SP trajectory was going to suddenly change and head north again. I removed PET recently for much the same reasons. A small Australian company with too much invested in China at the wrong time.
Other issues specific to FLC, in my opinion, include:
Of course, 2 days later (on Friday 10th July, 2020) - they released this announcement: Fluence Achieves Positive Quarterly Cashflow. And rose +17.5%.
I think a number of my points do however remain valid. On the other hand, this could be a positive inflection point for FLC. Time will tell.
#Water Consumption is forecast to double by 2050.
#The production of biofuels has also increased sharply in recent years, with significant impact on water demand. Between 1,000 and 4,000 litres of water are needed to produce a single litre of biofuel.
#Almost 80% of diseases in so called "developing" countries are associated with water, causing some three million early deaths. For example, 5,000 children die every day from diarrhoea, or one every 17 seconds. Demand for freshwater is increasing by 64 billion cubic meters a year (1 cubic meter = 1,000 litres).
Fluence operates in the small to mid range of water treatment, desalination project size.... They work globally from a minesite in Chili, a chicken factory in Italy, a resort in the Philipines, the worlds longest highway in China....and on and on.
This market is saturated with huge multinationals that are chemical companies like ECOLAB, Solenis, filtration companies such as Pentair, some Chinese giants.
On the small cap space I also own Scidev Ltd (ASX:SDV) which imports chemicals that coagulate all the crap in the water that you can then filter out with standard processes.... SDV have a big market in coal mines and recently building sites.
None are as compelling as Fluence, which is weird as I am down on FLC and up on SDV even though I'm more bullish on FLC, as their product offering is diverse, scalable, environmentally friendly, energy efficient, and are fast approaching cashflow positive.
Some countries import water to survive...eg Turkmenistan imports 97% of its use!!! Ok that is an extreme example.. Zimbabwe imports 39%. Not only poor countries.. Switzerland imported 24% of its use ****All these stats are in 2017****
By reusing wastewater, having decentralised desalination plants in an energy efficient, environmentaly friendly, cost effective solution I believe and hope that Fluence and the communities it serves can prosper.
Business Update for Quarter Ended 31 December 2019 (Q4 2019)