Business Wire News

CANONSBURG, Pa.--(BUSINESS WIRE)--#ETRN--Equitrans Midstream Corporation (NYSE: ETRN), today, announced financial and operational results for the third quarter 2020. Included in the "Non-GAAP Disclosures" section of this news release are important disclosures regarding the use of non-GAAP supplemental financial measures, including information regarding their most comparable GAAP financial measure.


Q3 2020 Highlights:

  • Delivered third quarter 2020 results ahead of guidance
  • Generated $168 million of net income and achieved $282 million of adjusted EBITDA
  • Recorded 68% of total operating revenue from firm reservation fees
  • Raised full-year 2020 adjusted EBITDA and free cash flow guidance

"Our third quarter results demonstrate our ability to generate predictable and stable revenue in any type of operating environment," said Thomas F. Karam, ETRN chairman and chief executive officer. "The transformative actions that we took earlier in the year have allowed us to focus on controlling costs and efficiently deploying capital, which ultimately enables us to strengthen our balance sheet and generate substantial free cash flow."

"Our results also reflect the benefits we are realizing as a result of the new gathering agreement executed earlier this year," said Diana M. Charletta, ETRN president and chief operating officer. "This new agreement allows us to optimize our assets by eliminating redundancies, scheduling efficient construction plans, and safely streamlining operations, all of which lead to meaningful capital reductions."

Charletta continued, "In addition, as our nation continues to navigate the uncertainties of the COVID-19 pandemic, ETRN is proud to play a part in safely transporting critical energy resources during these unprecedented times. By implementing strict pandemic-related working protocols early on, our operations teams have continued to provide safe, reliable, and uninterrupted midstream services for our customers."

THIRD QUARTER 2020 SUMMARY RESULTS

$ millions (except per share metrics)

 

Net income attributable to ETRN common shareholders

$

149.8

 

Adjusted net income attributable to ETRN common shareholders

$

135.1

 

Earnings per diluted share attributable to ETRN common shareholders

$

0.35

 

Adjusted earnings per diluted share attributable to ETRN common shareholders

$

0.31

 

Net income

$

168.4

 

Adjusted EBITDA

$

281.6

 

Deferred revenue

$

74.6

 

Net cash provided by operating activities

$

231.2

 

Free cash flow

$

44.6

 

Retained free cash flow

$

(20.3)

 

Net income attributable to ETRN common shareholders for the third quarter 2020 was impacted by a $21.0 million unrealized gain on derivative instruments. The unrealized gain is reported within other income and relates to the contractual agreement with EQT Corporation (EQT) in which ETRN will receive cash from EQT conditioned on the quarterly average of certain Henry Hub natural gas prices exceeding certain thresholds during the three years following the Mountain Valley Pipeline's (MVP) in-service, but in no case extending beyond December 2024. The contract is accounted for as a derivative with the fair value marked-to-market at each quarter-end.

As a result of the gathering agreement with EQT entered into in February 2020, revenue from the contracted minimum volume commitment (MVC) is recognized utilizing an average rate applied over the 15-year contract life. The difference between the cash received from the contracted MVC and the revenue recognized results in the deferral of revenue into future periods. In the third quarter 2020, deferred revenue was $74.6 million.

Operating revenue for the third quarter was lower compared to the same quarter last year by $58.4 million, primarily from the impact of deferred revenue. The reduction in operating revenue was partially offset by increased revenue from higher MVCs. Operating expenses decreased by $297.4 million compared to the third quarter 2019, primarily as a result of a $305.5 million impairment of goodwill in the third quarter 2019. Additionally, operating and maintenance expense decreased versus the prior year quarter while selling, general and administrative and depreciation expense increased.

QUARTERLY DIVIDEND
For the third quarter 2020, ETRN will pay a quarterly cash dividend of $0.15 per common share on November 13, 2020 to ETRN common shareholders of record at the close of business on November 3, 2020.

TOTAL CAPITAL EXPENDITURES AND CAPITAL CONTRIBUTIONS

$ millions

 

Three Months Ended
September 30, 2020

 

Nine Months Ended
September 30, 2020

 

Full-Year 2020
Forecast

MVP

 

$63

 

$142

 

$265 - $275

Gathering(1)

 

$77

 

$266

 

$330 - $340

Transmission(2)

 

$9

 

$36

 

$45 - $55

Water

 

$3

 

$8

 

$15

Headquarters

 

$1

 

$3

 

$5

Total

 

$153

 

$455

 

$660 - $690

(1)

Excludes $13.5 million and $37.1 million of capital expenditures related to noncontrolling interests in Eureka Midstream Holdings, LLC (Eureka) for the three and nine months ended September 30, 2020, respectively. Full-year 2020 forecast excludes approximately $45 million of capital expenditures related to the noncontrolling interests in Eureka.

(2)

Includes capital contributions to Mountain Valley Pipeline, LLC (MVP JV) for the MVP Southgate project.

OUTLOOK

$ millions

Full-Year 2020

Net income attributable to ETRN

$430 - $450

Adjusted EBITDA

$1,200 - $1,220

Deferred revenue

$225

Free cash flow

$320 - $340

Retained free cash flow

$(90) - $(70)

BUSINESS AND PROJECT UPDATES
Outstanding Debt and Liquidity
As of September 30, 2020, ETRN reported $6.4 billion of consolidated long-term debt; $485 million of borrowings and $235 million of letters of credit outstanding under the $3 billion revolving credit facility; and $182.5 million of cash.

Water Services
Water operating income was $10.1 million and water EBITDA was $18.2 million in the third quarter 2020. Water EBITDA is forecast to be approximately $70 - $75 million for the full-year 2020.

Volume Curtailment Update
Third quarter 2020 gathered volumes and revenue were impacted by temporary production curtailments by EQT. The curtailed volumes averaged approximately 570 MMcf per day during the month of September and were brought back online in a phased approach during the first half of October.

Mountain Valley Pipeline
Recently, the MVP JV obtained a number of key permits and authorizations. In September, the MVP JV received the project's new Biological Opinion, and the U.S. Army Corps of Engineers (USACE) approved the project's Nationwide Permit 12 (NWP12); and in early October, the MVP JV received approval from the U.S. Federal Energy Regulatory Commission (FERC) to resume forward construction along the majority of the route. In mid-October, the Fourth Circuit Court of Appeals issued a temporary administrative stay of the project’s NWP12, which prevents construction of waterbody crossings under the USACE's NWP12 program until the Court rules on the full motion to stay. The Court has scheduled oral arguments for November 9 on the full motion to stay. Additionally, in late October, a challenge was filed against the project's new Biological Opinion.

Due to unanticipated delays during the prime 2020 construction seasons resulting from the current inability to complete certain construction work related to the NWP12 and the remaining FERC stop work order related to approximately 25 miles of the project, the MVP JV is targeting a full in-service date for the project during the second half of 2021. The total project cost estimate is $5.8 - $6.0 billion, of which ETRN expects to fund approximately $2.9 billion. As of September 30, 2020, ETRN had funded approximately $2.1 billion. Based on the midpoint of the total project cost estimate, ETRN expects to have an approximate 47.6% ownership interest in MVP and will operate the pipeline.

MVP Southgate
In June 2020, the FERC issued the Certificate of Public Convenience and Necessity for the MVP Southgate project. In August 2020, North Carolina regulators denied the MVP JV's application for a Section 401 water quality certification, which was appealed in September 2020. Project construction is expected to begin in 2021, upon receiving all necessary permits and authorizations, and MVP Southgate is targeted to enter service during 2022. The approximately 75-mile pipeline is expected to receive gas from MVP in Virginia and transport the gas to new delivery points in Rockingham and Alamance Counties, North Carolina. With a total project cost estimate of approximately $450 million to $500 million, MVP Southgate is backed by a 300 MMcf per day firm capacity commitment from Dominion Energy North Carolina and, as designed, the pipeline has expansion capabilities that could provide up to 900 MMcf per day of total capacity. ETRN has a 47.2% ownership interest in MVP Southgate and will operate the pipeline.

Q3 2020 Earnings Conference Call Information
ETRN will host a conference call with security analysts today, November 3, 2020, at 10:30 a.m. (ET) to discuss third quarter 2020 financial results, operating results, and other business matters.

Call Access: All participants must pre-register online, in advance of the call. Upon completion, registered participants will receive a confirmation email that includes instructions for accessing the call, as well as a unique registration ID and passcode. Please pre-register using the appropriate online registration links below:

Security Analysts :: Audio Registration
Your email confirmation will contain dial-in information, along with your unique ID and passcode.

All Other Participants :: Webcast Registration
Your email confirmation will contain the webcast link, along with your unique ID and passcode.

Call Replay: For 14 days following the call, an audio replay will be available at (800) 585-8367 or (416) 621-4642. The ETRN conference ID: 7529126.

ETRN management speak to investors from time-to-time and the presentation for these discussions, which is updated periodically, is available via www.equitransmidstream.com.

NON-GAAP DISCLOSURES
Adjusted Net Income Attributable to ETRN Common Shareholders and Adjusted Earnings per Diluted Share Attributable to ETRN Common Shareholders
Adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders are non-GAAP supplemental financial measures that management and external users of ETRN’s consolidated financial statements, such as investors, may use to make period-to-period comparisons of earnings trends. Management believes that adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders as presented provide useful information for investors for evaluating period-over-period earnings. Adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders should not be considered as alternatives to net income attributable to ETRN common shareholders, earnings per diluted share attributable to ETRN common shareholders or any other measure of financial performance presented in accordance with GAAP. Adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders as presented have important limitations as analytical tools because they exclude some, but not all, items that affect net income attributable to ETRN common shareholders and earnings per diluted share attributable to ETRN common shareholders, including, as applicable, the premium on redemption of a portion of EQM Midstream Partners, LP (EQM) Series A Perpetual Convertible Preferred Units (EQM Series A Preferred Units), separation and other transaction costs, impairments of long-lived assets, changes in the fair value of derivative instruments and loss on early extinguishment of debt, which items affect the comparability of results period to period. The impact of noncontrolling interests is also excluded from the calculations of adjustment items to adjusted net income attributable to ETRN common shareholders, as is the tax impact of non-GAAP items. Additionally, because these non-GAAP metrics may be defined differently by other companies in ETRN's industry, ETRN's definitions of adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders may not be comparable to similarly titled measures of other companies, thereby diminishing the utility of the measures. Adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders should not be viewed as indicative of the actual amount of net income attributable to ETRN common shareholders or actual earnings of ETRN in any given period.

The table below reconciles adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders with net income attributable to ETRN common shareholders and earnings per diluted share attributable to ETRN common shareholders as derived from the statements of consolidated comprehensive income to be included in ETRN’s Quarterly Report on Form 10-Q for the three months ended September 30, 2020.

Reconciliation of Adjusted Net Income Attributable to ETRN Common Shareholders and Adjusted Earnings per Diluted Share Attributable to ETRN Common Shareholders

 

Three Months Ended September 30,

(Thousands, except per share information)

2020

 

2019

Net income (loss) attributable to ETRN common shareholders

$

149,838

 

 

$

(65,825)

 

Add back / (deduct):

 

 

 

Separation and other transaction costs

984

 

 

256

 

Impairments of long-lived assets

 

 

305,459

 

Unrealized gain on derivative instruments

(21,005)

 

 

 

Noncontrolling interest impact of non-GAAP items

 

 

(96,913)

 

Tax impact of non-GAAP items(1)

5,265

 

 

(54,909)

 

Adjusted net income attributable to ETRN common shareholders

$

135,082

 

 

$

88,068

 

Diluted weighted average common shares outstanding

432,821

 

 

254,915

 

Adjusted earnings per diluted share attributable to ETRN common shareholders

$

0.31

 

 

$

0.35

 

(1)

The adjustments were tax effected at the Company’s federal and state statutory tax rate for each period.

Adjusted EBITDA
As used in this news release, Adjusted EBITDA means net income, plus income tax expense, net interest expense, loss on early extinguishment of debt (as applicable), depreciation, amortization of intangible assets, impairments of long-lived assets, payments on the preferred interest in EQT Energy Supply, LLC (Preferred Interest), non-cash long-term compensation expense (income), and separation and other transaction costs, less equity income, AFUDC-equity, unrealized gain (loss) on derivative instruments and adjusted EBITDA attributable to noncontrolling interest.

The table below reconciles adjusted EBITDA with net income as derived from the statements of consolidated comprehensive income to be included in ETRN's Quarterly Report on Form 10-Q for the three months ended September 30, 2020.

Reconciliation of Adjusted EBITDA

 

Three Months Ended September 30,

(Thousands)

2020

 

2019

Net income (loss)

$

168,439

 

 

$

(61,489)

 

Add:

 

 

 

Income tax expense

28,440

 

 

1,948

 

Net interest expense

86,411

 

 

65,606

 

Depreciation

66,772

 

 

59,460

 

Amortization of intangible assets

16,204

 

 

14,540

 

Impairments of long-lived assets

 

 

305,459

 

Preferred Interest payments

2,765

 

 

2,746

 

Non-cash long-term compensation expense (income)

3,048

 

 

(718)

 

Separation and other transaction costs

984

 

 

256

 

Less:

 

 

 

Equity income

(60,917)

 

 

(44,448)

 

AFUDC – equity

(192)

 

 

(474)

 

Unrealized gain on derivative instruments

(21,005)

 

 

 

Adjusted EBITDA attributable to noncontrolling interest(1)

(9,363)

 

 

(9,149)

 

Adjusted EBITDA

$

281,586

 

 

$

333,737

 

(1)

Reflects adjusted EBITDA attributable to noncontrolling interest associated with the third-party ownership interest in Eureka. Adjusted EBITDA attributable to noncontrolling interest for the three months ended September 30, 2020 was calculated as net income of $4.0 million plus depreciation of $2.8 million, plus amortization of intangible assets of $2.1 million and plus interest expense of $0.5 million. Adjusted EBITDA attributable to noncontrolling interest for the three months ended September 30, 2019 was calculated as net loss of $29.7 million, plus depreciation of $2.6 million, plus amortization of intangible assets of $1.3 million, plus impairments of long-lived assets of $34.0 million and plus interest expense of $1.0 million.

Free Cash Flow
As used in this news release, free cash flow means net cash provided by operating activities plus principal payments received on the Preferred Interest, and less net cash provided by operating activities attributable to noncontrolling interest, capital expenditures (excluding the noncontrolling interest share (40%) of Eureka capital expenditures), capital contributions to MVP JV, and distributions/dividends and redemption amounts paid to Series A Preferred unitholders/shareholders (as applicable).

Retained Free Cash Flow
As used in this news release, retained free cash flow means free cash flow less dividends paid to common shareholders and distributions paid to noncontrolling interest EQM common unitholders (as applicable).

The table below reconciles free cash flow and retained free cash flow with net cash provided by operating activities as derived from the statements of consolidated cash flows to be included in ETRN's Quarterly Report on Form 10-Q for the three months ended September 30, 2020.

Reconciliation of Free Cash Flow and Retained Free Cash Flow

 

Three Months Ended September 30,

(Thousands)

2020

 

2019

Net cash provided by operating activities

$

231,195

 

 

$

267,926

 

Add back / (deduct):

 

 

 

Principal payments received on the Preferred Interest

1,259

 

 

1,173

 

Net cash provided by operating activities attributable to noncontrolling interest(1)

(13,828)

 

 

(4,744)

 

ETRN Series A Preferred Shares dividends(2)

(2,251)

 

 

 

EQM Series A Preferred Unit distributions(3)

(10,929)

 

 

(22,979)

 

Capital expenditures(4)(5)

(95,243)

 

 

(280,394)

 

Capital contributions to MVP JV

(65,630)

 

 

(211,677)

 

Free cash flow

$

44,573

 

 

$

(250,695)

 

Less:

 

 

 

Dividends paid to common shareholders (6)

(64,871)

 

 

(114,634)

 

Distributions paid to noncontrolling interest EQM common unitholders

 

 

(96,526)

 

Retained free cash flow

$

(20,298)

 

 

$

(461,855)

 

(1)

Reflects 40% of $34.6 million and $11.9 million, or Eureka’s standalone net cash provided by operating activities, representing the noncontrolling interest portion for the three months ended September 30, 2020 and 2019, respectively.

(2)

Reflects cash dividends paid of $0.075 per ETRN Series A Perpetual Convertible Preferred Share.

(3)

Reflects partial period distributions paid for the period 4/1/2020 through 6/17/2020 and cash distributions of $1.0364 per EQM Series A Preferred Unit in the third quarter of 2019.

(4)

Does not reflect amounts related to the noncontrolling interest share of Eureka.

(5)

ETRN accrues capital expenditures when the work has been completed but the associated bills have not yet been paid. Accrued capital expenditures are excluded from the statements of consolidated cash flows until they are paid.

(6)

Second quarter 2020 dividend of $0.15 per ETRN common share was paid during the third quarter 2020.

Adjusted EBITDA, free cash flow and retained free cash flow are non-GAAP supplemental financial measures that management and external users of ETRN's consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies, may use to assess:

  • ETRN’s operating performance as compared to other publicly traded companies in the midstream energy industry without regard to historical cost basis or, in the case of adjusted EBITDA, financing methods
  • The ability of ETRN’s assets to generate sufficient cash flow to pay dividends to ETRN’s shareholders
  • ETRN’s ability to incur and service debt and fund capital expenditures and capital contributions
  • The viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities

ETRN believes that adjusted EBITDA, free cash flow, and retained free cash flow provide useful information to investors in assessing ETRN's financial condition and results of operations. Adjusted EBITDA, free cash flow, and retained free cash flow should not be considered as alternatives to net income, operating income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA, free cash flow, and retained free cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income, operating income and net cash provided by operating activities. Additionally, because these non-GAAP metrics may be defined differently by other companies in ETRN's industry, ETRN's definitions of adjusted EBITDA, free cash flow, and retained free cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing the utility of the measures. Free cash flow and retained free cash flow should not be viewed as indicative of the actual amount of cash that ETRN has available for dividends or that ETRN plans to distribute and are not intended to be liquidity measures.

ETRN is unable to provide a reconciliation of projected adjusted EBITDA from projected net income (loss), the most comparable financial measure calculated in accordance with GAAP, or a reconciliation of projected free cash flow or retained cash flow to net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. ETRN has not provided a reconciliation of projected adjusted EBITDA to projected net income (loss), the most comparable financial measure calculated in accordance with GAAP, due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy. Net income (loss) includes the impact of depreciation expense, income tax expense, the revenue impact of changes in the projected fair value of derivative instruments prior to settlement, potential changes in estimates for certain contract liabilities and unbilled revenues and certain other items that impact comparability between periods and the tax effect of such items, which may be significant and difficult to project with a reasonable degree of accuracy. Therefore, a reconciliation of projected adjusted EBITDA to projected net income (loss) is not available without unreasonable effort.

ETRN is unable to project net cash provided by operating activities because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occurred. ETRN is unable to project these timing differences with any reasonable degree of accuracy to a specific day, three or more months in advance. Therefore, ETRN is unable to provide projected net cash provided by operating activities, or the related reconciliation of each of projected free cash flow and projected retained free cash flow to projected net cash provided by operating activities without unreasonable effort.


Contacts

Analyst inquiries:
Nate Tetlow – Vice President, Corporate Development and Investor Relations
412-553-5834
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media inquiries:
Natalie Cox – Communications and Corporate Affairs
412-395-3941
This email address is being protected from spambots. You need JavaScript enabled to view it.


Read full story here

DUBLIN--(BUSINESS WIRE)--The "Global Offshore Drilling Rigs Market 2020-2024" report has been added to ResearchAndMarkets.com's offering.


The author has been monitoring the offshore drilling rigs market and it is poised to grow by $ 3.92 billion during 2020-2024 progressing at a CAGR of 4% during the forecast period.

The reports on offshore drilling rigs market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.

The report offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment. The market is driven by the increase in deepwater and ultra-deepwater drilling activities and new oil and gas exploration policies. In addition, increase in deepwater and ultra-deepwater drilling activities is anticipated to boost the growth of the market as well.

The offshore drilling rigs market analysis includes type segment and geographic landscapes. This study identifies the high potential of offshore marginal fields as one of the prime reasons driving the offshore drilling rigs market growth during the next few years.

The publisher presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources by an analysis of key parameters.

Companies Mentioned

  • Archer Ltd.
  • China Oilfield Services Ltd.
  • Helmerich & Payne Inc.
  • KCA Deutag Alpha Ltd.
  • Nabors Industries Ltd.
  • Noble Corp. Plc
  • Patterson-UTI Energy Inc.
  • Transocean Ltd.
  • Valaris Plc
  • Weatherford International Plc

The offshore drilling rigs market covers the following areas:

  • Offshore drilling rigs market sizing
  • Offshore drilling rigs market forecast
  • Offshore drilling rigs market industry analysis

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to an analysis of the key vendors.

The publisher presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources by an analysis of key parameters such as profit, pricing, competition, and promotions. It presents various market facets by identifying the key industry influences. The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast an accurate market growth.

Key Topics Covered:

1. Executive Summary

  • Market Overview

2. Market Landscape

  • Market ecosystem
  • Value chain analysis

3. Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 - 2024

4. Five Forces Analysis

  • Five forces summary
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

5. Market Segmentation by Type

  • Market segments
  • Comparison by Type
  • Bottom-supported rigs - Market size and forecast 2019-2024
  • Floating rigs - Market size and forecast 2019-2024
  • Market opportunity by Type

6. Customer landscape

  • Customer landscape

7. Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • APAC - Market size and forecast 2019-2024
  • MEA - Market size and forecast 2019-2024
  • North America - Market size and forecast 2019-2024
  • Europe - Market size and forecast 2019-2024
  • South America - Market size and forecast 2019-2024
  • Key leading countries
  • Market opportunity by geography
  • Market drivers
  • Market challenges
  • Market trends

8. Vendor Landscape

  • Competitive scenario
  • Vendor landscape
  • Landscape disruption
  • Industry risks

9. Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • Archer Ltd.
  • China Oilfield Services Ltd.
  • Helmerich & Payne Inc.
  • KCA Deutag Alpha Ltd.
  • Nabors Industries Ltd.
  • Noble Corp. Plc
  • Patterson-UTI Energy Inc.
  • Transocean Ltd.
  • Valaris Plc
  • Weatherford International Plc

10. Appendix

  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations

For more information about this report visit https://www.researchandmarkets.com/r/h13sz4


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

BROOKLYN HEIGHTS, Ohio--(BUSINESS WIRE)--GrafTech International Ltd. (NYSE: EAF) (GrafTech or the Company) today announced financial results for the quarter ended September 30, 2020, including net income of $94 million, or $0.35 per share, and Adjusted EBITDA(1) of $153 million.


"We are pleased with GrafTech's third quarter financial results while operating in a challenging environment and appreciate the ongoing commitment of our team through the COVID-19 pandemic," said David Rintoul, President and Chief Executive Officer. "We continue to work closely with our customers and are committed to helping them navigate the current market conditions."

Third Quarter Results and Key Financial Measures

 

For the Three Months
Ended September 30,

 

For the Nine Months
Ended September 30,

(dollars in thousands, except per share amounts)

2020

2019

 

2020

2019

 

 

 

 

 

 

Net sales

$

286,987

 

$

420,797

 

 

$

886,351

 

$

1,376,181

 

Net income

$

94,234

 

$

175,876

 

 

$

309,278

 

$

569,680

 

Earnings per share (2)

$

0.35

 

$

0.61

 

 

$

1.15

 

$

1.96

 

Adjusted EBITDA(1)

$

153,105

 

$

245,454

 

 

$

483,408

 

$

813,673

 

(1)

A non-GAAP financial measure, see below for more information and a reconciliation of EBITDA and Adjusted EBITDA to Net income, the most directly comparable financial measure calculated and presented in accordance with GAAP.

(2)

Earnings per share represents diluted earnings per share.

Net sales for the quarter ended September 30, 2020 were $287 million, compared to $421 million in the third quarter of 2019. Lower net sales reflect reduced sales volumes driven primarily by the impact of COVID-19 on steel production levels and continued customer inventory destocking.

Net income for the third quarter of 2020 was $94 million, or $0.35 per share, compared to $176 million, or $0.61 per share in the third quarter of 2019. Adjusted EBITDA was $153 million in the third quarter of 2020 compared to $245 million in the third quarter of 2019.

Cash flow from operating activities was $129 million in the third quarter of 2020, compared to $226 million in the third quarter 2019. We ended the quarter with a strong liquidity position of approximately $406 million, consisting of cash and cash equivalents of $159 million and availability of $247 million under our revolving credit facility.

Key operating metrics

 

For the Three Months
Ended September 30,

 

For the Nine Months
Ended September 30,

(in thousands)

 

2020

2019

 

2020

2019

Sales volume (MT) (1)

33

 

40

 

 

98

 

130

 

Production volume (MT) (2)

32

 

40

 

 

98

 

136

 

Production capacity excluding St. Marys (MT) (3)(4)

48

 

48

 

 

150

 

150

 

Capacity utilization excluding St. Marys (3)(5)

67

%

83

%

 

65

%

91

%

Total production capacity (MT) (4)(6)

55

 

55

 

 

171

 

171

 

Total capacity utilization (5)(6)

58

%

73

%

 

57

%

80

%

(1)

Sales volume reflects only graphite electrodes manufactured by GrafTech.

(2)

Production volume reflects graphite electrodes we produced during the period.

(3)

In the first quarter of 2018, our St. Marys facility began graphitizing a limited number of electrodes sourced from our Monterrey, Mexico facility.

(4)

Production capacity reflects expected maximum production volume during the period under normal operating conditions, standard product mix and expected maintenance outage. Actual production may vary.

(5)

Capacity utilization reflects production volume as a percentage of production capacity.

(6)

Includes graphite electrode facilities in Calais, France; Monterrey, Mexico; Pamplona, Spain and St. Marys, Pennsylvania.

Sales volume was 33 thousand metric tons (MT) in the third quarter of 2020 and consisted of 27 thousand MT shipped under our long-term agreements (LTAs) and 6 thousand MT of spot sales. Production volume, aligned with sales volume, was 32 thousand MT in the third quarter of 2020 compared to 40 thousand MT in the same period of 2019.

COVID-19 and Operational Update

GrafTech continues to proactively manage through the COVID-19 crisis. Our executive-led COVID-19 response team meets three times per week to monitor the ongoing situation and respond as needed.

Our plants have remained operational through the current pandemic and maintained a 98% on-time delivery rate. Our global footprint gives us the flexibility to move or adjust production if needed.

We continue to focus on containing our costs and aligning production to current sales levels for the remainder of the year. We expect to meet our reduced full year capital expenditure estimate of approximately $35 million.

Commercial Update

GrafTech services customers at over 300 locations across the globe all of which have been impacted by COVID-19. We are seeing a measured recovery in the global steel markets compared to the second quarter 2020, with each region recovering at different rates, and anticipate this will have a positive influence on graphite electrode demand. In the third quarter 2020, the global (ex-China) steel market capacity utilization rate improved to over 60%1. In the U.S., the third quarter capacity utilization rate was approximately 64%2. By late October, the capacity utilization rate in the U.S. steel market approached 70%2.

The commercial team has worked diligently to achieve solid results in the current environment. Year-to-date sales volumes through the third quarter were 98 thousand MT, consisting of LTA volumes of 82 thousand MT and non-LTA volumes of 16 thousand MT.

During the third quarter, our average price from LTAs declined slightly to approximately $9,300 per MT, reflecting the impacts of product mix, LTA modifications and other adjustments. Due to favorable mix in the quarter, the average price for our non-LTA business increased slightly to approximately $5,700 per MT. However, as anticipated, we believe the general spot price of graphite electrodes continued to trend lower during the third quarter.

The current market conditions are challenging for our customers, including those with LTAs, and we have some customers that are continuing to struggle to take their committed volumes. This is causing some non-performance and disputes, including a few arbitrations associated with, among other things, efforts to modify existing contracts. As such, we will continue to work to preserve our rights under the LTAs.

We are working hard with our valued customers to develop mutually beneficial solutions and have successfully negotiated LTA modifications with several of these customers during the third quarter. We are able to provide near-term relief in exchange for additional contractual commitments going forward. We expect to continue to finalize more of these beneficial negotiations in the coming months.

Capital Structure and Capital Allocation

During the third quarter we reduced our debt by approximately $150 million. After quarter end, we further reduced our debt by an additional $60 million, bringing 2020 debt reduction to $313 million through the end of October. We will continue to prioritize balance sheet flexibility and expect to use the majority of fourth quarter incremental free cash flow to reduce debt.

Outlook

For the remainder of 2020, we anticipate our full year LTA sales volumes to be above the midpoint of the expected range of 100 thousand - 115 thousand MT. We now expect our full year LTA revenue will be between $1,000 million and $1,080 million in 2020.

With the LTA modifications and ongoing customer discussions, we are able to provide estimated shipments of graphite electrodes for the final two years of the initial term under our LTAs and for the years 2023 through 2024 as follows:

 

2021

 

2022

 

2023 through 2024

Estimated LTA volume(1)

98-108

 

95-105

 

35-45

Estimated LTA revenue(2)

$925-$1,025

 

$910-$1,010

 

$350-$450 (3)

(1)

In thousands of metric tons

(2)

In millions

(3)

Includes expected termination fees from a few customers that have failed to meet certain obligations under their LTAs

The environmental and economic advantages of electric arc furnace steel production positions both that industry and the graphite electrode industry for continued long-term growth.

We believe GrafTech's leadership position, strong cash flows, and advantaged low cost structure and vertical integration are sustainable competitive advantages. The services and solutions we provide will position our customers and us for a better future.

Conference Call

In conjunction with this earnings release, you are invited to listen to our earnings call being held on November 3, 2020 at 10:00 a.m. Eastern Standard Time. The webcast and accompanying slide presentation will be available at www.GrafTech.com, in the Investors section. The earnings call dial-in number is +1 (866) 521-4909 toll-free in the U.S. and Canada or +1 (647) 427-2311, conference ID: 6767702 for overseas calls. A replay of the Conference Call will be available until February 3, 2021 by dialing +1 (800) 585-8367 toll-free in the U.S. and Canada or +1 (416) 621-4642 for overseas calls, conference ID: 6767702. A replay of the webcast will also be available on our website until February 3, 2021, at www.GrafTech.com, in the Investors section. GrafTech also makes its complete financial reports that have been filed with the Securities and Exchange Commission (the "SEC") and other information available at www.GrafTech.com. The information in our website is not part of this release or any report we file or furnish to the SEC.

About GrafTech

GrafTech International Ltd. is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals. The Company has a competitive portfolio of low-cost graphite electrode manufacturing facilities, including three of the highest capacity facilities in the world. GrafTech is also the only large-scale graphite electrode producer that is substantially vertically integrated into petroleum needle coke, a key raw material for graphite electrode manufacturing. This unique position provides competitive advantages in product quality and cost.

Special note regarding Forward-Looking Statements

This news release and related discussions may contain forward-looking statements that reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “will,” “may,” “plan,” “estimate,” “project,” “believe,” “anticipate,” “expect,” “foresee”, “intend,” “should,” “would,” “could,” “target,” “goal,” “continue to,” “positioned to,” "are confident", or the negative versions of those words or other comparable words. Any forward-looking statements contained in this news release are based upon our historical performance and on our current plans, estimates and expectations considering information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our expectations and targets are not predictions of actual performance and historically our performance has deviated, often significantly, from our expectations and targets. These forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to: the ultimate impact that the COVID-19 pandemic has on our business, results of operations, financial condition and cash flows; the cyclical nature of our business and the selling prices of our products may lead to periods of reduced profitability and net losses in the future; the possibility that we may be unable to implement our business strategies, including our ability to secure and maintain longer-term customer contracts, in an effective manner; the risks and uncertainties associated with litigation, arbitration, and like disputes, including the recently filed stockholder litigation and disputes related to contractual commitments; the possibility that global graphite electrode overcapacity may adversely affect graphite electrode prices; pricing for graphite electrodes has historically been cyclical and the price of graphite electrodes may continue to decline in the future; the sensitivity of our business and operating results to economic conditions and the possibility others may not be able to fulfill their obligations to us in a timely fashion or at all; our dependence on the global steel industry generally and the electric arc furnace steel industry in particular; the competitiveness of the graphite electrode industry; our dependence on the supply of petroleum needle coke; our dependence on supplies of raw materials (in addition to petroleum needle coke) and energy; the possibility that our manufacturing operations are subject to hazards; changes in, or more stringent enforcement of, health, safety and environmental regulations applicable to our manufacturing operations and facilities; the legal, compliance, economic, social and political risks associated with our substantial operations in multiple countries; the possibility that fluctuation of foreign currency exchange rates could materially harm our financial results; the possibility that our results of operations could deteriorate if our manufacturing operations were substantially disrupted for an extended period, including as a result of equipment failure, climate change, regulatory issues, natural disasters, public health crises, such as the COVID-19 pandemic, political crises or other catastrophic events; our dependence on third parties for certain construction, maintenance, engineering, transportation, warehousing and logistics services; the possibility that we are unable to recruit or retain key management and plant operating personnel or successfully negotiate with the representatives of our employees, including labor unions; the possibility that we may divest or acquire businesses, which could require significant management attention or disrupt our business; the sensitivity of goodwill on our balance sheet to changes in the market; the possibility that we are subject to information technology systems failures, cybersecurity attacks, network disruptions and breaches of data security; our dependence on protecting our intellectual property; the possibility that third parties may claim that our products or processes infringe their intellectual property rights; the possibility that significant changes in our jurisdictional earnings mix or in the tax laws of those jurisdictions could adversely affect our business; the possibility that our indebtedness could limit our financial and operating activities or that our cash flows may not be sufficient to service our indebtedness; the possibility that restrictive covenants in our financing agreements could restrict or limit our operations; the fact that borrowings under certain of our existing financing agreements subjects us to interest rate risk; the possibility of a lowering or withdrawal of the ratings assigned to our debt; the possibility that disruptions in the capital and credit markets could adversely affect our results of operations, cash flows and financial condition, or those of our customers and suppliers; the possibility that highly concentrated ownership of our common stock may prevent minority stockholders from influencing significant corporate decisions; the possibility that we may not pay cash dividends on our common stock in the future; the fact that certain of our stockholders have the right to engage or invest in the same or similar businesses as us; the possibility that the market price of our common stock could be negatively affected by sales of substantial amounts of our common stock in the public markets, including by Brookfield Asset Management Inc. and its affiliates; the fact that certain provisions of our Amended and Restated Certificate of Incorporation and our Amended and Restated By-Laws could hinder, delay or prevent a change of control; the fact that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders; and our status as a "controlled company" within the meaning of the New York Stock Exchange corporate governance standards, which allows us to qualify for exemptions from certain corporate governance requirements.

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements, including the Risk Factors sections included in our most recent Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020, and other filings with the SEC. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We do not undertake any obligation to publicly update or review any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise.

Non-GAAP financial measures

In addition to providing results that are determined in accordance with GAAP, we have provided certain financial measures that are not in accordance with GAAP. EBITDA and Adjusted EBITDA are non-GAAP financial measures. We define EBITDA, a non-GAAP financial measure, as net income or loss plus interest expense, minus interest income, plus income taxes, and depreciation and amortization. We define adjusted EBITDA as EBITDA plus any pension and other post-employment benefit ("OPEB") plan expenses, initial and follow-on public offering and related expenses, non-cash gains or losses from foreign currency remeasurement of non-operating assets and liabilities in our foreign subsidiaries where the functional currency is the U.S. dollar, related party Tax Receivable Agreement adjustments, stock-based compensation, and non-cash fixed asset write-offs. Adjusted EBITDA is the primary metric used by our management and our Board of Directors to establish budgets and operational goals for managing our business and evaluating our performance.

We monitor adjusted EBITDA as a supplement to our GAAP measures, and believe it is useful to present to investors, because we believe that it facilitates evaluation of our period-to-period operating performance by eliminating items that are not operational in nature, allowing comparison of our recurring core business operating results over multiple periods unaffected by differences in capital structure, capital investment cycles and fixed asset base. In addition, we believe adjusted EBITDA and similar measures are widely used by investors, securities analysts, ratings agencies, and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities. We also monitor the ratio of total debt to adjusted EBITDA, because we believe it is a useful and widely used way to assess our leverage.

Our use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

  • adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  • adjusted EBITDA does not reflect our cash expenditures for capital equipment or other contractual commitments, including any capital expenditure requirements to augment or replace our capital assets;
  • adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our indebtedness;
  • adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;
  • adjusted EBITDA does not reflect expenses relating to our pension and OPEB plans;
  • adjusted EBITDA does not reflect the non-cash gains or losses from foreign currency remeasurement of non-operating assets and liabilities in our foreign subsidiaries where the functional currency is the U.S. dollar;
  • adjusted EBITDA does not reflect initial and follow-on public offering and related expenses;
  • adjusted EBITDA does not reflect related party Tax Receivable Agreement adjustments;
  • adjusted EBITDA does not reflect stock-based compensation or the non-cash write-off of fixed assets; and
  • other companies, including companies in our industry, may calculate EBITDA and adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

In evaluating EBITDA and adjusted EBITDA, you should be aware that in the future, we will incur expenses similar to the adjustments in the reconciliation presented below. Our presentations of EBITDA and adjusted EBITDA should not be construed as suggesting that our future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating our performance, you should consider EBITDA and adjusted EBITDA alongside other financial performance measures, including our net income and other GAAP measures.

 

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

Unaudited

 
 

 

As of
September 30,
2020

 

As of
December 31,
2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

158,841

 

 

 

$

80,935

 

 

Accounts and notes receivable, net of allowance for doubtful accounts of
$8,973 as of September 30, 2020 and $5,474 as of December 31, 2019

164,195

 

 

 

247,051

 

 

Inventories

299,236

 

 

 

313,648

 

 

Prepaid expenses and other current assets

35,299

 

 

 

40,946

 

 

Total current assets

657,571

 

 

 

682,580

 

 

Property, plant and equipment

765,822

 

 

 

733,417

 

 

Less: accumulated depreciation

264,304

 

 

 

220,397

 

 

Net property, plant and equipment

501,518

 

 

 

513,020

 

 

Deferred income taxes

40,767

 

 

 

55,217

 

 

Goodwill

171,117

 

 

 

171,117

 

 

Other assets

96,616

 

 

 

104,230

 

 

Total assets

$

1,467,589

 

 

 

$

1,526,164

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

49,056

 

 

 

$

78,697

 

 

Short-term debt

147

 

 

 

141

 

 

Accrued income and other taxes

81,756

 

 

 

65,176

 

 

Other accrued liabilities

65,058

 

 

 

48,335

 

 

Related party payable - tax receivable agreement

16,115

 

 

 

27,857

 

 

Total current liabilities

212,132

 

 

 

220,206

 

 

 

 

 

 

Long-term debt

1,564,431

 

 

 

1,812,682

 

 

Other long-term obligations

76,403

 

 

 

72,562

 

 

Deferred income taxes

44,251

 

 

 

49,773

 

 

Related party payable - tax receivable agreement long-term

42,479

 

 

 

62,014

 

 

Stockholders’ equity:

 

 

 

Preferred stock, par value $0.01, 300,000,000 shares authorized, none issued

 

 

 

 

 

Common stock, par value $0.01, 3,000,000,000 shares authorized, 267,188,547
shares issued and outstanding as of September 30, 2020 and 270,485,308
as of December 31, 2019

2,672

 

 

 

2,705

 

 

Additional paid-in capital

757,576

 

 

 

765,419

 

 

Accumulated other comprehensive loss

(39,161

)

 

 

(7,361

)

 

Accumulated deficit

(1,193,194

)

 

 

(1,451,836

)

 

Total stockholders’ deficit

(472,107

)

 

 

(691,073

)

 

 

 

 

 

Total liabilities and stockholders’ equity

$

1,467,589

 

 

 

$

1,526,164

 

 

 

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands)

Unaudited

 

 

For the Three Months
Ended September 30,

 

For the Nine Months
Ended September 30,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

Net sales

$

286,987

 

 

 

$

420,797

 

 

 

$

886,351

 

 

 

$

1,376,181

 

 

Cost of sales

131,862

 

 

 

178,497

 

 

 

401,379

 

 

 

571,068

 

 

Gross profit

155,125

 

 

 

242,300

 

 

 

484,972

 

 

 

805,113

 

 

Research and development

650

 

 

 

611

 

 

 

2,072

 

 

 

1,961

 

 

Selling and administrative expenses

19,062

 

 

 

15,708

 

 

 

49,995

 

 

 

46,328

 

 

Operating profit

135,413

 

 

 

225,981

 

 

 

432,905

 

 

 

756,824

 

 

 

 

 

 

 

 

 

 

Other expense (income), net

694

 

 

 

(688

)

 

 

(2,309

)

 

 

642

 

 

Related party Tax Receivable Agreement benefit

 

 

 

 

 

 

(3,346

)

 

 

 

 

Interest expense

22,474

 

 

 

31,803

 

 

 

69,026

 

 

 

98,472

 

 

Interest income

(93

)

 

 

(1,765

)

 

 

(1,582

)

 

 

(2,910

)

 

Income before provision for income taxes

112,338

 

 

 

196,631

 

 

 

371,116

 

 

 

660,620

 

 

Provision for income taxes

18,104

 

 

 

20,755

 

 

 

61,838

 

 

 

90,940

 

 

Net income

$

94,234

 

 

 

$

175,876

 

 

 

$

309,278

 

 

 

$

569,680

 

 

 

 

 

 

 

 

 

 

Basic income per common share:

 

 

 

 

 

 

 

Net income per share

$

0.35

 

 

 

$

0.61

 

 

 

$

1.15

 

 

 

$

1.96

 

 

Weighted average common shares outstanding

267,265,705

 

 

 

290,112,233

 

 

 

267,908,427

 

 

 

290,410,859

 

 

Diluted income per common share:

 

 

 

 

 

 

 

Income per share

$

0.35

 

 

 

$

0.61

 

 

 

$

1.15

 

 

 

$

1.96

 

 

Weighted average common shares outstanding

267,279,555

 

 

 

290,127,296

 

 

 

267,920,890

 

 

 

290,422,351

 

 

 

 

 

 

 

 

 

 


Contacts

Wendy Watson
216-676-2000


Read full story here

DUBLIN--(BUSINESS WIRE)--The "Aircraft Fuel Cells - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.


The publisher brings years of research experience to the 9th edition of this report. The 192-page report presents concise insights into how the pandemic has impacted production and the buy side for 2020 and 2021. A short-term phased recovery by key geography is also addressed.

Global Aircraft Fuel Cells Market to Reach $531.5 Million by 2027

Amid the COVID-19 crisis, the global market for Aircraft Fuel Cells estimated at US$380.1 Million in the year 2020, is projected to reach a revised size of US$531.5 Million by 2027, growing at a CAGR of 4.9% over the analysis period 2020-2027.

Hydrogen Fuel Cell, one of the segments analyzed in the report, is projected to record a 5.8% CAGR and reach US$297.7 Million by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Gasoline Fuel Cell segment is readjusted to a revised 3% CAGR for the next 7-year period.

The U.S. Market is Estimated at $103 Million, While China is Forecast to Grow at 7.7% CAGR

The Aircraft Fuel Cells market in the U.S. is estimated at US$103 Million in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$110.2 Million by the year 2027 trailing a CAGR of 7.7% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.6% and 4.5% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 3% CAGR.

Other Fuel Cell Types Segment to Record 4.4% CAGR

In the global Other Fuel Cell Types segment, USA, Canada, Japan, China and Europe will drive the 4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$79.6 Million in the year 2020 will reach a projected size of US$104.6 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$70.5 Million by the year 2027, while Latin America will expand at a 5.4% CAGR through the analysis period.

Competitors identified in this market include, among others:

  • Airbus Americas, Inc.
  • Ballard Power Systems, Inc.
  • Boeing Company, The
  • Delphi Technologies
  • EnergyOR Technologies, Inc.
  • Hydrogenics Corporation
  • Nuvera Fuel Cells LLC
  • SerEnergy A/S

Key Topics Covered:

I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Global Competitor Market Shares
  • Aircraft Fuel Cells Competitor Market Share Scenario Worldwide (in %): 2019 & 2025
  • Impact of Covid-19 and a Looming Global Recession

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

IV. COMPETITION

  • Total Companies Profiled: 51

For more information about this report visit https://www.researchandmarkets.com/r/3td6ib


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

Earnings Release Highlights


  • GAAP Net Income of $0.51 per share and Adjusted (non-GAAP) Operating Earnings of $1.04 per share for the third quarter of 2020
  • Raising our guidance range for full year 2020 Adjusted (non-GAAP) Operating Earnings from $2.80 - $3.10 per share to $3.00 - $3.20 per share
  • Strong utility reliability and customer operations performance - every utility achieved top quartile in outage frequency & duration, customer satisfaction, abandon rate and gas odor response
  • Generation’s nuclear fleet ran with a capacity factor of 96.0%
  • Pepco filed the second multi-year plan in Maryland; filing proposes flat distribution rates for the first two years
  • Conducting a strategic review of our corporate structure to determine how best to create value and position our businesses for success

 

CHICAGO--(BUSINESS WIRE)--Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2020.

“Our financial results exceeded expectations, and our utility and generation operational performance remained strong despite the challenges of the pandemic, record heat and extreme storms, including tropical storm Isaias on the East Coast and a hurricane-scale derecho that spawned 13 tornadoes across our ComEd territory in the Midwest,” said Christopher M. Crane, president and CEO of Exelon. “We also confronted difficult strategic decisions on specific generation assets during the quarter, including our plans to prematurely retire our Byron and Dresden nuclear stations in Illinois in 2021 due to broken energy policies that don’t fairly value clean energy resources. In addition, our gas-fired Mystic plant in Boston will retire in 2024 when its cost of service agreement expires. We expect to finish the year strong as we maintain our focus on safe, reliable operations, reducing costs, supporting clean energy policies and positioning the company for the future.”

“Excellent operational performance and our success in managing costs during the pandemic continues to drive strong financial performance, resulting in adjusted (non-GAAP) third-quarter earnings of $1.04 per share, which exceeded our guidance of $0.80 to $0.90 per share,” said Joseph Nigro, senior executive vice president and CFO of Exelon. “So far this year, we have invested $4.5 billion at our utilities to improve infrastructure and further increase grid reliability for customers, with more on the way as we move forward with new proposed capital projects across our service territories over the next several years. We are raising our year-end earnings guidance to $3.00 to $3.20 per share from $2.80 to $3.10 per share.”

Third Quarter 2020

Exelon's GAAP Net Income for the third quarter of 2020 decreased to $0.51 per share from $0.79 per share in the third quarter of 2019. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2020 increased to $1.04 per share from $0.92 per share in the third quarter of 2019. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 5.

Adjusted (non-GAAP) Operating Earnings in the third quarter of 2020 primarily reflect:

  • Higher utility earnings primarily due to regulatory rate increases at BGE and PHI and favorable weather conditions at PECO, partially offset by storm costs related to the August 2020 storm at PECO, net of tax repairs, and at PHI; and
  • Higher Generation earnings primarily due to higher capacity revenues and lower operating and maintenance expense, partially offset by a reduction in load due to COVID-19.

Operating Company Results1

ComEd

ComEd's third quarter of 2020 GAAP Net Income and Adjusted (non-GAAP) Operating Earnings remained relatively consistent with the third quarter of 2019. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.

PECO

PECO’s third quarter of 2020 GAAP Net Income and Adjusted (non-GAAP) Operating Earnings remained relatively consistent with the third quarter of 2019, primarily due to favorable weather conditions, offset by higher storm costs due to the August 2020 storm net of tax repairs.

BGE

BGE’s third quarter of 2020 GAAP Net Income and Adjusted (non-GAAP) Operating Earnings remained relatively consistent with the third quarter of 2019, primarily due to regulatory rate increases, offset by an increase in various expenses. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.

PHI

PHI’s third quarter of 2020 GAAP Net Income increased to $216 million from $189 million in the third quarter of 2019. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2020 increased to $220 million from $209 million in the third quarter of 2019, primarily due to regulatory rate increases, partially offset by storm costs related to the August 2020 storm. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland and Pepco District of Columbia are not affected by actual weather or customer usage patterns.

Generation

Generation's third quarter of 2020 GAAP Net Income decreased to $49 million from $257 million in the third quarter of 2019. Generation’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2020 increased to $456 million from $352 million in the third quarter of 2019, primarily due to higher capacity revenues and lower operating and maintenance expense, partially offset by a reduction in load due to COVID-19.

As of Sep. 30, 2020, the percentage of expected generation hedged is 97%-100% and 87%-90% for 2020 and 2021, respectively.

___________

1Exelon’s five business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware; and Generation, which consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products and risk management services.

Recent Developments and Third Quarter Highlights

  • COVID-19: Exelon continues to monitor developments related to the global outbreak (pandemic) of the 2019 novel coronavirus (COVID-19) pandemic and has taken proactive measures to protect the health and safety of employees, contractors and customers. As a provider of critical resources, Exelon has robust plans and contingencies in place to ensure business and operational continuity across a wide range of potentially disruptive events, including extensive preparedness for major public health crises. Exelon and its operating companies are working in close coordination with designated state and local emergency preparedness and health officials, and at the federal level through the Electric Subsector Coordinating Council. All Exelon employees have access to up-to-date information and resources and are following Centers for Disease Control guidelines to ensure safety. In addition, Exelon utilities have established incident command centers to address emergent customer and employee needs in real time.

    The estimated impact to Generation’s Net income as a result of COVID-19 is approximately $45 million and $140 million for the three and nine months ended Sept. 30, 2020, respectively, and primarily reflects the impact of reduction in load, incremental credit loss expense and direct costs related to COVID-19.

    The estimated impact to the Utility Registrants’ Net income as a result of COVID-19 is approximately $65 million for the nine months ended Sep. 30, 2020, and primarily reflects the impact of reduction in load for the Utility Registrants and direct costs related to COVID-19 primarily for PECO. The estimated net impact to the Utility Registrants’ Net income for the three months ended Sep. 30, 2020, is approximately $15 million and primarily reflects the impact of reduction in load offset by the reversal of incremental credit loss expense and direct costs related to COVID-19 recorded in the second quarter of 2020, which were recorded as regulatory assets in the third quarter of 2020.

    At Generation and PECO, direct costs related to COVID-19 are excluded from Adjusted (non-GAAP) Operating Earnings.

    Generation also expects a reduction in operating revenues in the fourth quarter of 2020 primarily due to expected reduction in electric load.

    Exelon identified and is pursuing approximately $250 million in cost savings across its operating companies to offset the expected unfavorable impacts on operating revenues. The cost savings for the year are expected to be higher than originally anticipated.
  • Early Retirement of Generation Facilities: In August 2020, Exelon Generation announced that it intends to retire the Byron Generating Station (Byron) in September 2021, Dresden Generating Station (Dresden) in November 2021, and Mystic Units 8 & 9 (Mystic) at the expiration of the cost of service commitment in May 2024. As a result, in the third quarter of 2020, Exelon and Generation recognized a $500 million impairment of the New England asset group and one-time non-cash charges for Byron, Dresden, and Mystic of $260 million related to materials and supplies inventory reserve adjustments, employee-related costs, and construction work-in-progress impairments, among other items. In addition, there will be ongoing annual financial impacts stemming from shortening the expected economic useful lives of these facilities, primarily related to accelerated depreciation of plant assets (including any Asset Retirement Costs (ARC)) and accelerated amortization of nuclear fuel. Exelon’s and Generation’s third quarter 2020 results include an incremental $180 million of pre-tax expense for these items. These charges are excluded from Adjusted (non-GAAP) Operating Earnings.
  • PECO Pennsylvania Natural Gas Distribution Rate Case: On Sep. 30, 2020, PECO filed an application with the Pennsylvania Public Utility Commission (PAPUC) to increase its annual natural gas distribution rates by $69 million, reflecting an ROE of 10.95%. PECO currently expects a decision in the second quarter of 2021 but cannot predict if the PAPUC will approve the application as filed.
  • Pepco Maryland Electric Rate Case: On Oct. 26, 2020, Pepco filed an application for a three-year cumulative multi-year plan for April 1, 2021, through March 31, 2024, with the Maryland Public Service Commission (MDPSC) to increase its electric distribution rates by $56 million effective April 1, 2023, and $54 million effective April 1, 2024, to recover capital investments made in 2019 and planned capital investments from 2020 to March 31, 2024, reflecting an ROE of 10.2%. Pepco currently expects a decision in the second quarter of 2021 but cannot predict if the MDPSC will approve the application as filed.
  • Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100% of the CENG units, produced 44,884 gigawatt-hours (GWhs) in the third quarter of 2020, compared with 46,215 GWhs in the third quarter of 2019. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 96.0% capacity factor for the third quarter of 2020, compared with 95.5% for the third quarter of 2019. The number of planned refueling outage days in the third quarter of 2020 totaled 17, compared with 15 in the third quarter of 2019. There were 4 non-refueling outage days in the third quarter of 2020 and 15 in the third quarter of 2019.
  • Fossil and Renewables Operations: The Dispatch Match rate for Generation’s fossil and hydro fleet was 98.9% in the third quarter of 2020, compared with 97.5% in the third quarter of 2019. Energy Capture for the wind and solar fleet was 91.9% in the third quarter of 2020, compared with 96.5% in the third quarter of 2019. The lower performance in the quarter was attributed to turbines in outage awaiting parts to perform repairs.
  • Financing Activities: On Sep. 23, 2020, Pepco issued $150 million of its First Mortgage Bonds, 3.28% Series due Sept. 23, 2050. Pepco used the proceeds to repay existing indebtedness and for general corporate purposes.
  • Review of Corporate Structure: Exelon is currently conducting a strategic review of its corporate structure to determine how to best create value and position its businesses for success. As part of the review, Exelon is considering separating Exelon Generation from Exelon Utilities. As Exelon continues this review, it is focused on creating value and taking into account the interests of all stakeholders – investors, employees, customers and the communities it serves. There can be no assurance that the strategic review will result in any particular action, nor can there be any assurance regarding the timing of any action. Exelon will provide an update on its progress on its next earnings call. Exelon has retained advisors to assist with the review process.

GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation

Adjusted (non-GAAP) Operating Earnings for the third quarter of 2020 do not include the following items (after tax) that were included in reported GAAP Net Income:

(in millions)

Exelon
Earnings per
Diluted
Share

Exelon

ComEd

PECO

BGE

PHI

Generation

2020 GAAP Net Income (Loss)

$

0.51

 

 

$

501

 

 

$

196

 

$

138

 

$

53

 

$

216

 

 

$

49

 

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $62 and $64, respectively)

(0.19

)

 

(183

)

 

 

 

 

 

 

(192

)

 

Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments (net of taxes of $161)

(0.18

)

 

(172

)

 

 

 

 

 

 

(172

)

 

Asset Impairments (net of taxes of $126)

0.38

 

 

375

 

 

 

 

 

 

 

375

 

 

Plant Retirements and Divestitures (net of taxes of $111)

0.34

 

 

329

 

 

 

 

 

 

 

329

 

 

Cost Management Program (net of taxes of $5, $0, $0, $1 and $4, respectively)

0.02

 

 

15

 

 

 

1

 

1

 

1

 

 

12

 

 

Change in Environmental Liabilities (net of taxes of $6)

0.02

 

 

17

 

 

 

 

 

 

 

17

 

 

COVID-19 Direct Costs (net of taxes of $3, $1, $0, and $2, respectively)

0.01

 

 

10

 

 

 

2

 

 

1

 

 

7

 

 

Asset Retirement Obligation (net of taxes of $1)

 

 

3

 

 

 

 

 

3

 

 

 

 

Acquisition Related Costs (net of taxes of $1)

 

 

2

 

 

 

 

 

 

 

2

 

 

Income Tax-Related Adjustments (entire amount represents tax expense)

0.06

 

 

62

 

 

 

 

 

(1

)

 

(28

)

 

Noncontrolling Interests (net of taxes of $12)

0.06

 

 

57

 

 

 

 

 

 

 

57

 

 

2020 Adjusted (non-GAAP) Operating Earnings

$

1.04

 

 

$

1,017

 

 

$

197

 

$

141

 

$

54

 

$

220

 

 

$

456

 

 

Adjusted (non-GAAP) Operating Earnings for the third quarter of 2019 do not include the following items (after tax) that were included in reported GAAP Net Income:

(in millions)

Exelon
Earnings per
Diluted
Share

Exelon

ComEd

PECO

BGE

PHI

Generation

2019 GAAP Net Income

$

0.79

 

 

$

772

 

 

$

200

 

$

140

 

$

55

 

$

189

 

$

257

 

 

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $2 and $4, respectively)

 

 

(2

)

 

 

 

 

 

(10

)

 

Unrealized Gains Related to NDT Fund Investments (net of taxes of $34)

(0.04

)

 

(39

)

 

 

 

 

 

(39

)

 

Asset Impairments (net of taxes of $53)

0.12

 

 

113

 

 

 

 

 

 

113

 

 

Plant Retirements and Divestitures (net of taxes of $40)

0.12

 

 

119

 

 

 

 

 

 

119

 

 

Cost Management Program (net of taxes of $3, $0, $0, $0 and $3, respectively)

0.01

 

 

14

 

 

 

1

 

1

 

2

 

10

 

 

Asset Retirement Obligation (net of taxes of $9)

(0.09

)

 

(84

)

 

 

 

 

 

(84

)

 

Change in Environmental Liabilities (net of taxes of $5, $5 and $0, respectively)

0.02

 

 

18

 

 

 

 

 

17

 

1

 

 

Income Tax-Related Adjustments (entire amount represents tax expense)

0.01

 

 

13

 

 

 

 

 

1

 

9

 

 

Noncontrolling Interests (net of taxes of $3)

(0.02

)

 

(24

)

 

 

 

 

 

(24

)

 

2019 Adjusted (non-GAAP) Operating Earnings

$

0.92

 

 

$

900

 

 

$

200

 

$

141

 

$

56

 

$

209

 

$

352

 

 

Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2020 and 2019 ranged from 26.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 48.3% and 47.1% for the three months ended Sep. 30, 2020 and 2019, respectively.

Webcast Information

Exelon will discuss third quarter 2020 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at www.exeloncorp.com/investor-relations.

About Exelon

Exelon Corporation (Nasdaq: EXC) is a Fortune 100 energy company with the largest number of electricity and natural gas customers in the U.S. Exelon does business in 48 states, the District of Columbia, and Canada and had 2019 revenue of $34 billion. Exelon serves approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey, and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 31,000 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential, public sector, and business customers, including three fourths of the Fortune 100. Follow Exelon on Twitter @Exelon.

Non-GAAP Financial Measures

In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. The Company has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on Nov. 3, 2020.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including among others those related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of various governments and regulatory bodies, our customers, and the company, on our business, financial condition, and results of operations; any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions, and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.

The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2019 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 18, Commitments and Contingencies; (2) the Registrants' Third Quarter 2020 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2020) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 14, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.

Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

Exelon

GAAP Consolidated Statements of Operations and

Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments

(unaudited)

(in millions, except per share data)

 

 

Three Months Ended
September 30, 2020

 

Three Months Ended
September 30, 2019

 

GAAP (a)

 

Non-GAAP
Adjustments

 

 

 

GAAP (a)

 

Non-GAAP
Adjustments

 

 

Operating revenues

$

8,853

 

 

$

(37

)

 

(b)

 

$

8,929

 

 

$

(77

)

 

(b)

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Purchased power and fuel

3,614

 

 

194

 

 

(b),(c)

 

3,952

 

 

(63

)

 

(b),(c)

Operating and maintenance

2,732

 

 

(718

)

 

(c),(d),(e),(f),

(g),(h),(i)

 

2,072

 

 

18

 

 

(c),(d),(e),(f),

(i)

Depreciation and amortization

1,289

 

 

(262

)

 

(c)

 

1,083

 

 

(96

)

 

(c)

Taxes other than income taxes

452

 

 

 

 

 

 

452

 

 

 

 

 

Total operating expenses

8,087

 

 

 

 

 

 

7,559

 

 

 

 

 

Gain (loss) on sales of assets and businesses

3

 

 

 

 

 

 

(17

)

 

18

 

 

(c)

Operating income

769

 

 

 

 

 

 

1,353

 

 

 

 

 

Other income and (deductions)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

(404

)

 

8

 

 

(b)

 

(409

)

 

14

 

 

(b)

Other, net

421

 

 

(333

)

 

(j)

 

158

 

 

(75

)

 

(c),(j)

Total other income and (deductions)

17

 

 

 

 

 

 

(251

)

 

 

 

 

Income before income taxes

786

 

 

 

 

 

 

1,102

 

 

 

 

 

Income taxes

216

 

 

(34

)

 

(b),(c),(d),(e),

(f),(g),(h),(i),

(j),(k)

 

172

 

 

33

 

 

(b),(c),(d),(e),

(f),(i),(j),(k)

Equity in losses of unconsolidated affiliates

(1

)

 

 

 

 

 

(170

)

 

164

 

 

(f)

Net income

569

 

 

 

 

 

 

760

 

 

 

 

 

Net income (loss) attributable to noncontrolling interests

68

 

 

(57

)

 

(l)

 

(12

)

 

24

 

 

(l)

Net income attributable to common shareholders

$

501

 

 

 

 

 

 

$

772

 

 

 

 

 

Effective tax rate(m)

27.5

%

 

 

 

 

 

15.6

%

 

 

 

 

Earnings per average common share

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.51

 

 

 

 

 

 

$

0.79

 

 

 

 

 

Diluted

$

0.51

 

 

 

 

 

 

$

0.79

 

 

 

 

 

Average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

Basic

976

 

 

 

 

 

 

973

 

 

 

 

 

Diluted

977

 

 

 

 

 

 

974

 

 

 

 

 


Contacts

Paul Adams
Corporate Communications
410-245-8717

Emily Duncan
Investor Relations
312-394-2345

 


Read full story here

DUBLIN--(BUSINESS WIRE)--The "Global Terminal Automation Market in the Oil and Gas Industry 2020-2024" report has been added to ResearchAndMarkets.com's offering.


The terminal automation market in the oil and gas industry is poised to grow by USD 481.37 million during 2020-2024 progressing at a CAGR of 3% during the forecast period.

The report on terminal automation market in the oil and gas industry provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.

The report offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment. The market is driven by the global expansion in oil terminals, increasing demand for attaining operational efficiency and global increase in demand for crude oil and natural gas.

The terminal automation market in the oil and gas industry market analysis includes product segment, application segment and geographical landscapes. This study identifies the emergence of IoT and cloud integration as one of the prime reasons driving the terminal automation market in the oil and gas industry growth during the next few years. Also, increasing trend of terminals owned by independent players and rising investment in LNG will lead to sizable demand in the market.

Companies Mentioned

  • ABB Ltd.
  • Emerson Electric Co.
  • Honeywell International Inc.
  • Implico GmbH
  • Inter Pipeline
  • Leidos Holdings Inc.
  • Rockwell Automation Inc.
  • Schneider Electric SE
  • Siemens AG
  • Yokogawa Electric Corp.

The report covers the following areas:

  • Terminal automation market in the oil and gas industry sizing
  • Terminal automation market in the oil and gas industry forecast
  • Terminal automation market in the oil and gas industry analysis

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to an analysis of the key vendors.

The report presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources by an analysis of key parameters such as profit, pricing, competition, and promotions. It presents various market facets by identifying the key industry influences. The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The publisher's market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast an accurate market growth.

Key Topics Covered:

1. Executive Summary

  • Market Overview

2. Market Landscape

  • Market ecosystem
  • Value chain analysis

3. Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 - 2024

4. Five Forces Analysis

  • Five forces summary
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

5. Market Segmentation by Product

  • Market segments
  • Comparison by Product
  • Hardware - Market size and forecast 2019-2024
  • Software - Market size and forecast 2019-2024
  • Services - Market size and forecast 2019-2024
  • Market opportunity by Product

6. Market Segmentation by Application

  • Market segments
  • Comparison by Application
  • Oil terminal - Market size and forecast 2019-2024
  • Natural gas terminal - Market size and forecast 2019-2024
  • Market opportunity by Application

7. Customer landscape

  • Overview

8. Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • North America - Market size and forecast 2019-2024
  • MEA - Market size and forecast 2019-2024
  • Europe - Market size and forecast 2019-2024
  • APAC - Market size and forecast 2019-2024
  • South America - Market size and forecast 2019-2024
  • Key leading countries
  • Market opportunity by geography
  • Market drivers
  • Market challenges
  • Market trends

9. Vendor Landscape

  • Overview
  • Landscape disruption

10. Vendor Analysis

  • Vendors covered
  • Market positioning of vendors

11. Appendix

For more information about this report visit https://www.researchandmarkets.com/r/1nudbn


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

  • Fourth quarter GAAP net sales of $4.6 billion were down 8 percent; underlying sales were down 9 percent, in-line with management guidance. Full year GAAP net sales of $16.8 billion were down 9 percent; underlying sales were down 8 percent, also in-line with management guidance.
  • Fourth quarter GAAP EPS was $1.20, up 3 percent from the year prior; adjusted EPS, which excludes restructuring and certain tax benefits, was $1.10, down 4 percent. Full year GAAP EPS was $3.24, down 13 percent from the year prior, and ahead of guidance of $2.80 to $2.95; adjusted EPS was $3.46, down 6 percent, and ahead of guidance of $3.20 to $3.35.
  • Delivered strong operating cash flow of $1.23 billion in the quarter, up 2 percent, and $3.08 billion for the year, up 3 percent.
  • Delivered strong free cash flow of $1.02 billion in the quarter, up 2 percent, and $2.55 billion for the year, up 6 percent.
  • Initiated $73 million of restructuring and related actions in the quarter, totaling $304 million for the year, continuing aggressive execution of the comprehensive cost reset program to return to record adjusted EBIT margins.
  • Completed 64 consecutive years of increased dividends per share and plan to announce a 2 cent increase for 2021, after today's Board of Directors meeting.

ST. LOUIS--(BUSINESS WIRE)--Emerson (NYSE: EMR) today reported results for the fourth fiscal quarter and fiscal year ended September 30, 2020.


Fourth quarter GAAP net sales were down 8 percent and underlying sales were down 9 percent excluding favorable currency of 1 percent. Overall revenue declines were in-line with management guidance, with Automation Solutions finishing at the low end of expectations and Commercial & Residential Solutions finishing above expectations. Overall, the company continued to see demand challenges most acute in North American markets, which were down in the mid-teens. Europe was down mid-single digits, and Asia, Middle East & Africa was most resilient, down low-single digits.

Emerson finished the year with September trailing three-month underlying orders down 11 percent, in-line with our expectation for the second half of the year, as strength in residential-facing markets, life sciences, medical, and food & beverage was more than offset by ongoing demand weakness in most other process and discrete industries. Importantly, Commercial & Residential Solutions trailing three-month underlying orders grew by 6 percent, bolstered by residential and big-box oriented retail businesses, and a return to orders growth in the cold chain business.

Fourth quarter gross profit margin of 41.3 percent was down 150 basis points from the previous year primarily due to volume deleverage and mix. Pretax margin of 16.8 percent and EBIT margin of 17.7 percent were up 20 basis points and 30 basis points, respectively. Adjusted EBIT margin, which excludes restructuring and related costs, was 19.3 percent for the quarter, up 80 basis points, supported by accelerated cost reduction actions.

GAAP earnings per share was $1.20 for the quarter and adjusted earnings per share was $1.10. Earnings in the quarter benefited from the ongoing restructuring and cost reduction actions.

Operating cash flow was $1.23 billion, up 2 percent for the quarter. Full year operating cash flow was $3.08 billion, up 3 percent. Free cash flow was $1.02 billion, up 2 percent for the quarter, resulting in exceptional free cash flow conversion of 140 percent. Full year free cash flow was $2.55 billion, up 6 percent, resulting in strong free cash flow conversion of 128 percent driven by rigorous operational execution across the two business platforms.

“The year took a dramatic turn in March, as the virus rapidly spread and impacted all of our major markets,” said Emerson Chairman and CEO David N. Farr. “Despite unforeseen once-in-a-career challenges and circumstances, Emerson was relatively well prepared and positioned. We had already begun our focus on cost containment actions and planning for a low-growth year, as was laid out during our February 2020 Investor Day. And our well-established regionalization strategy - maximizing sourcing, manufacturing, and distribution of products and solutions within regional end markets - was instrumental to maintaining our supply chain integrity as uncertainty intensified and economies halted. Amidst all the challenges, we exceeded our second quarter reset financial forecast in sales, EBITDA, and cash flow.

“As the situation rapidly evolved, Emerson's leadership team and global operations maintained focus on our key priority: to safely serve our customers and ensure business continuity in essential industries like power, life sciences, food & beverage, home comfort and safety, water, and energy. I am exceptionally proud of the way our employees rose to the challenge, going above and beyond to help our customers navigate the turbulence. Although there is clearly more work to be done as we enter a new fiscal year, I want to thank our employees, customers, shareholders, and Board of Directors for their unwavering commitment and partnership as we all manage this dynamic period in history.

"Although the COVID-19 virus has not yet subsided, the Emerson global team has learned to operate safely and effectively, in person, in this environment. Emerson's offices and facilities are open with employees safely working on site."

Business Platform Results

Automation Solutions net sales decreased 11 percent in the quarter, with underlying sales also down 11 percent. In the Americas, underlying sales were down 23 percent, with North America down over 20 percent, as continued broad-based demand challenges were partially offset by momentum in life sciences, food & beverage, and semiconductor. Europe underlying sales were down 6 percent. Asia, Middle East & Africa underlying sales returned to low single digit growth, as strength in Southeast Asia more than offset declines in China and the Middle East.

September trailing three-month underlying orders were down 19 percent, reflecting ongoing weakness across most end markets, with the exception of life sciences, medical, food & beverage, and semiconductor. Geographically, the Americas continue to be challenging, down nearly 30 percent. Asia, Middle East & Africa declined by 11 percent while Europe declined 8 percent. China orders were up 2 percent, however. Importantly, backlog in the business converted ahead of expectations, with a $400 million reduction from last quarter, leaving the balance at approximately $4.7 billion. Overall, we believe that the Automation Solutions business has reached and is trending along the trough of the demand curve. While the demand environment appears to be stabilizing, we have not yet seen meaningful indications of demand picking up in any key North American markets.

Segment EBIT margin decreased 140 basis points to 17.0 percent, as savings from cost actions and favorable price-cost was more than offset by volume deleverage and mix. Adjusted segment EBIT margin, which excludes restructuring and related costs, decreased 80 basis points to 18.7 percent while adjusted segment EBITDA margin decreased only 20 basis points, to 23.5 percent. Total restructuring and related actions in the quarter were $52 million, totaling $244 million for the full year.

Commercial & Residential Solutions net sales decreased 3 percent in the quarter, with underlying sales also down 3 percent. Underlying sales in the Americas were down 1 percent, reflecting improvement in residential and big-box retail channels. Similarly, Europe was down slightly at 1 percent as commercial market weakness was offset by continued heat pump demand due to sustainability regulations and customer technology preferences. Asia, Middle East & Africa was down 13 percent, with China down low double digits.

September trailing three-month underlying orders were up 6 percent, reflecting a sharp rebound in residential-facing markets and initial signs of recovery in cold chain markets. Meanwhile, professional tools markets remained weaker, but improving, as we move into our first quarter of fiscal 2021. Geographically, North America increased by 12 percent as residential and big-box retail markets sharply rebounded. Additionally, cold chain markets showed signs of stabilizing. Asia, Middle East & Africa orders declined by 9 percent, while China was down low double digits. Europe grew by 8 percent, as demand for heat pump solutions continued to show momentum due to sustainability regulations and customer technology preferences.

Segment EBIT margin decreased 10 basis points to 20.7 percent as cost reductions and favorable price cost effectively offset deleverage. Adjusted segment EBIT margin, which excludes restructuring and related costs, increased 50 basis points to 22.1 percent, and adjusted segment EBITDA margin increased 120 basis points to 26.6 percent. Total restructuring and related actions in the quarter were $21 million, with a total of $52 million for the full year.

2021 Capital Allocation and Outlook

There is no change to the capital allocation framework set forth during the Investor Conference in February including the return of 50 to 60 percent of cash flow to shareholders in the form of dividends and share repurchases over the long term. Share repurchases were suspended in fiscal year 2020, with approximately $950 million repurchased, due to the changing demand environment associated with COVID-19. Emerson intends to resume share repurchases in fiscal year 2021 in the amount of $500 million to $1 billion, while concurrently maintaining optionality for further acquisitions should the opportunity arise. This allocation excludes the funding of the previously announced acquisition of Open Systems International Inc. which closed on Oct 1, 2020.

Management believes it is appropriate to assume a conservative forecast for the 2021 macroeconomic environment given the current uncertainty, and expects a slow-but-steady improvement in demand over the course of 2021 as economies, companies, and communities continue to gradually reopen and learn to safely operate with the virus. We also expect to see continued progress with regard to vaccine development, manufacturing, and distribution over the course of the fiscal year.

Within this framework, as management forecasted in April 2020, we expect overall revenue to return to growth in the third quarter of 2021. Commercial & Residential Solutions is expected to return to growth earlier than originally expected, while Automation Solutions is expected to return to growth later in the year. Due to the delayed recovery in many automation markets, we are increasing restructuring spend within Automation Solutions, resulting in a total company restructuring spend of over $200 million in 2021. Lastly, the guidance assumes no major operational or supply chain disruptions and oil prices in the $35 to $50 range during this period.

The following table summarizes the 2021 guidance framework:

2021 Guidance

Net Sales Growth

1% - 4%

Operating Cash Flow

~$3.1B

Automation Solutions

(1%) - 2%

Capital Spend

~$600M

Commercial & Residential Solutions

5% - 8%

Free Cash Flow

~$2.5B

 

 

 

 

Underlying Sales Growth

(1%) - 2%

Dividend

~$1.2B

Automation Solutions

(4%) - (1%)

Share Repurchase

 

Commercial & Residential Solutions

4% - 7%

/ M&A (excl. OSI)1

$500M - $1.0B

 

 

 

 

GAAP EPS

$3.11 +/- $.05

Tax Rate

~22.5%

Adjusted EPS

$3.45 +/- $.05

Restructuring Actions

~$200M+

Note 1: OSI Inc. closed on Oct. 1, 2020.

“Despite the uncertainties and challenges from COVID-19, we ended the year with orders and sales squarely in-line with second quarter guidance,” Farr said. “Most importantly, we were able to deliver strong profitability, earnings, and cash flow, driven by our ongoing robust cost containment and restructuring actions. I’m proud of the team for executing on this challenging but vital work. As the broader macroeconomic outlook begins to stabilize, we are well-positioned with a more agile and lean cost structure to sustain and build upon our strong profitability, particularly as late cycle end markets begin their recovery.

“In conclusion, the fiscal year wasn’t just about reacting to the pandemic. We also continued to invest and took bold action to build on our innovation and technology footprint of the future, with three strategic acquisitions: American Governor, Open Systems International Inc. and Progea. These core technologies and capabilities will strengthen our position in attractive and growing marketplaces including software, renewable energy, and transmission & distribution. Digital transformation initiatives continue to gain momentum among many of our industrial customers, and these portfolio enhancements will enable us to help more customers adapt and excel within new operating paradigms.”

Upcoming Investor Events

Today, beginning at 2 p.m. Eastern Time, Emerson management will discuss the fourth quarter and full year 2020 results during an investor conference call. Please plan for a 90 minute call. Participants can access a live webcast available at www.emerson.com/financial at the time of the call. A replay of the call will remain available for 90 days. Conference call slides will be posted in advance of the call on the company website.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impact of the COVID-19 pandemic as well as economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.

(tables attached)

 

 

 

 

 

Table 1

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

 

 

 

 

 

 

 

Quarter Ended Sept 30

 

Percent

 

2019

 

2020

 

Change

 

 

 

 

 

 

Net sales

$4,971

 

$4,558

 

(8)%

Costs and expenses:

 

 

 

 

 

Cost of sales

2,843

 

2,676

 

 

SG&A expenses

1,109

 

946

 

 

Other deductions, net

153

 

131

 

 

Interest expense, net

40

 

40

 

 

Earnings before income taxes

826

 

765

 

(7)%

Income taxes

102

 

35

 

 

Net earnings

724

 

730

 

 

Less: Noncontrolling interests in earnings of subsidiaries

7

 

7

 

 

Net earnings common stockholders

$717

 

$723

 

1%

 

 

 

 

 

 

Diluted avg. shares outstanding

617.5

 

601.1

 

 

 

 

 

 

 

 

Diluted earnings per share common share

$1.16

 

$1.20

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended Sept 30

 

 

 

2019

 

2020

 

 

Other deductions, net

 

 

 

 

 

Amortization of intangibles

$61

 

$61

 

 

Restructuring costs

55

 

68

 

 

Other

37

 

2

 

 

Total

$153

 

$131

 

 

 

 

 

 

 

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

 

 

 

 

 

 

 

Years Ended Sept 30

 

Percent

 

2019

 

2020

 

Change

 

 

 

 

 

 

Net sales

$18,372

 

 

$16,785

 

 

(9)%

Costs and expenses:

 

 

 

 

 

Cost of sales

10,557

 

 

9,776

 

 

 

SG&A expenses

4,457

 

 

3,986

 

 

 

Other deductions, net

325

 

 

532

 

 

 

Interest expense, net

174

 

 

156

 

 

 

Earnings before income taxes

2,859

 

 

2,335

 

 

(18)%

Income taxes

531

 

 

345

 

 

 

Net earnings

2,328

 

 

1,990

 

 

 

Less: Noncontrolling interests in earnings of subsidiaries

22

 

 

25

 

 

 

Net earnings common stockholders

$2,306

 

 

$1,965

 

 

(15)%

 

 

 

 

 

 

Diluted avg. shares outstanding

620.6

 

 

606.6

 

 

 

 

 

 

 

 

 

Diluted earnings per share common share

$3.71

 

 

$3.24

 

 

(13)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended Sept 30

 

 

 

2019

 

2020

 

 

Other deductions, net

 

 

 

 

 

Amortization of intangibles

$238

 

 

$239

 

 

 

Restructuring costs

95

 

 

284

 

 

 

Special advisory fees

 

 

13

 

 

 

Other

(8

)

 

(4

)

 

 

Total

$325

 

 

$532

 

 

 

 

 

 

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

 

 

 

 

 

Years ended Sept 30

 

2019

 

2020

Assets

 

 

 

Cash and equivalents

$1,494

 

 

$3,315

 

Receivables, net

2,985

 

 

2,802

 

Inventories

1,880

 

 

1,928

 

Other current assets

780

 

 

761

 

Total current assets

7,139

 

 

8,806

 

Property, plant & equipment, net

3,642

 

 

3,688

 

Goodwill

6,536

 

 

6,734

 

Other intangible assets

2,615

 

 

2,468

 

Other

565

 

 

1,186

 

Total assets

$20,497

 

 

$22,882

 

 

 

 

 

Liabilities and equity

 

 

 

Short-term borrowings and current maturities of long-term debt

$1,444

 

 

$1,160

 

Accounts payable

1,874

 

 

1,715

 

Accrued expenses

2,658

 

 

2,910

 

Total current liabilities

5,976

 

 

5,785

 

Long-term debt

4,277

 

 

6,326

 

Other liabilities

1,971

 

 

2,324

 

Total equity

8,273

 

 

8,447

 

Total liabilities and equity

$20,497

 

 

$22,882

 

 

 

 

 

Table 4

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

 

 

 

 

 

 

Years Ended Sept 30

 

 

2019

 

2020

Operating activities

 

 

 

 

Net earnings

 

$2,328

 

$1,990

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

822

 

 

854

 

Stock compensation

 

120

 

 

110

 

Pension expense

 

2

 

 

67

 

Pension funding

 

(60

)

 

(66

)

Changes in operating working capital

 

(150

)

 

148

 

Other, net

 

(56

)

 

(20

)

Cash provided by operating activities

 

3,006

 

 

3,083

 

 

 

 

 

 

Investing activities

 

 

 

 

Capital expenditures

 

(594

)

 

(538

)

Purchases of businesses, net of cash and equivalents acquired

 

(469

)

 

(126

)

Divestitures of businesses

 

14

 

 

 

Other, net

 

(125

)

 

(76

)

Cash used in investing activities

 

(1,174

)

 

(740

)

 

 

 

 

 

Financing activities

 

 

 

 

Net increase in short-term borrowings

 

(6

)

 

(90

)

Proceeds from short-term borrowings greater than three months

 

 

 

1,043

 

Payments of short-term borrowings greater than three months

 

 

 

(1,043

)

Proceeds from long-term debt

 

1,691

 

 

2,233

 

Payments of long-term debt

 

(656

)

 

(503

)

Dividends paid

 

(1,209

)

 

(1,209

)

Purchases of common stock

 

(1,250

)

 

(942

)

Other, net

 

39

 

 

2

 

Cash used in financing activities

 

(1,391

)

 

(509

)

 

 

 

 

 

Effect of exchange rate changes on cash and equivalents

 

(40

)

 

(13

)

Increase in cash and equivalents

 

401

 

 

1,821

 

Beginning cash and equivalents

 

1,093

 

 

1,494

 

Ending cash and equivalents

 

$1,494

 

$3,315

 

 

 

 

 

 

 

 

Table 5

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(DOLLARS IN MILLIONS, UNAUDITED)

 

 

 

 

 

Quarter Ended Sept 30

 

2019

 

2020

Sales

 

 

 

Automation Solutions

$3,368

 

 

$3,005

 

 

 

 

 

Climate Technologies

1,142

 

 

1,111

 

Tools & Home Products

466

 

 

444

 

Commercial & Residential Solutions

1,608

 

 

1,555

 

 

 

 

 

Eliminations

(5

)

 

(2

)

Net sales

$4,971

 

 

$4,558

 

 

 

 

 

Earnings

 

 

 

Automation Solutions

$619

 

 

$511

 

 

 

 

 

Climate Technologies

233

 

 

238

 

Tools & Home Products

102

 

 

84

 

Commercial & Residential Solutions

335

 

 

322

 

 

 

 

 

Stock compensation

(37

)

 

(41

)

Unallocated pension and postretirement costs

27

 

 

16

 

Corporate and other

(78

)

 

(3

)

Interest expense, net

(40

)

 

(40

)

Earnings before income taxes

$826

 

 

$765

 

 

 

 

 

Restructuring costs

 

 

 

Automation Solutions

$39

 

 

$50

 

 

 

 

 

Climate Technologies

12

 

 

9

 

Tools & Home Products

2

 

 

9

 

Commercial & Residential Solutions

14

 

 

18

 

 

 

 

 

Corporate

2

 

 

 

Total

$55

 

 

$68

 

The table above does not include $5 of costs related to restructuring actions that were reported in cost of sales in the fourth quarter of fiscal 2020.

 

 

 

 

Depreciation and Amortization

 

 

 

Automation Solutions

$142

 

 

$143

 

 

 

 

 

Climate Technologies

44

 

 

51

 

Tools & Home Products

17

 

 

19

 

Commercial & Residential Solutions

61

 

 

70

 

 

 

 

 

Corporate and other

10

 

 

10

 

Total

$213

 

 

$223

 

 

 

 

Table 6

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(DOLLARS IN MILLIONS, UNAUDITED)

 

 

 

 

 

Years Ended Sept 30

 

2019

 

2020

Sales

 

 

 

Automation Solutions

$12,202

 

 

$11,155

 

 

 

 

 

Climate Technologies

4,313

 

 

3,980

 

Tools & Home Products

1,856

 

 

1,663

 

Commercial & Residential Solutions

6,169

 

 

5,643

 

 

 

 

 

Eliminations

1

 

 

(13

)

Net sales

$18,372

 

 

$16,785

 

 

 

 

 

Earnings

 

 

 

Automation Solutions

$1,947

 

 

$1,523

 

 

 

 

 

Climate Technologies

883

 

 

801

 

Tools & Home Products

388

 

 

317

 

Commercial & Residential Solutions

1,271

 

 

1,118

 

 

 

 

 

Stock compensation

(120

)

 

(110

)

Unallocated pension and postretirement costs

108

 

 

53

 

Corporate and other

(173

)

 

(93

)

Interest expense, net

(174

)

 

(156

)

Earnings before income taxes

$2,859

 

 

$2,335

 

 

 

 

 

Restructuring costs

 

 

 

Automation Solutions

$65

 

 

$232

 

 

 

 

 

Climate Technologies

20

 

 

23

 

Tools & Home Products

7

 

 

21

 

Commercial & Residential Solutions

27

 

 

44

 

 

 

 

 

Corporate

3

 

 

8

 

Total

$95

 

 

$284

 

The table above does not include $20 of costs related to restructuring actions that were reported in cost of sales for the twelve months ended September 30, 2020.

 

 

 

 

Depreciation and Amortization

 

 

 

Automation Solutions

$535

 

 

$557

 

 

 

 

 

Climate Technologies

176

 

 

184

 

Tools & Home Products

71

 

 

77

 

Commercial & Residential Solutions

247

 

 

261

 

 

 

 

 

Corporate and other

40

 

 

36

 

Total

$822

 

 

$854

  

Reconciliations of Non-GAAP Financial Measures & Other

 

 

 

Table 7

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliations of Non-GAAP measures (denoted by *) with the most directly comparable GAAP measure (dollars in millions, except per share amounts):

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2020 Underlying Sales Change

Auto Solns

 

Comm & Res
Solns

 

Emerson

 

 

Reported (GAAP)

 

(11

)%

 

(3

)%

 

(8

)%

 

 

(Favorable) / Unfavorable FX

%

 

%

 

(1

)%

 

 

Acquisitions / Divestitures

%

 

%

 

%

 

 

Underlying*

(11

)%

 

(3

)%

 

(9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020 Underlying Sales Change

Emerson

 

 

 

 

 

 

Reported (GAAP)

 

(9

)%

 

 

 

 

 

 

(Favorable) / Unfavorable FX

1

%

 

 

 

 

 

 

Acquisitions / Divestitures

%

 

 

 

 

 

 

Underlying*

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY 2021E Underlying Sales Change

Auto Solns

 

Comm & Res
Solns

 

Emerson

 

 

Reported (GAAP)

 

(1)% - 2%

 

5% - 8%

 

1% - 4%

 

 

(Favorable) / Unfavorable FX

~ (1)%

 

~ (1)%

 

~ (1)%

 

 

Acquisitions / Divestitures

 

~ (2)%

 

~ -%

 

~ (1)%

 

 

Underlying*

 

(4)% - (1)%

 

4% - 7%

 

(1)% - 2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 Earnings Per Share

Q4 FY19

 

Q4 FY20

 

Change

 

 

Earnings per share (GAAP)

$

1.16

 

 

$

1.20

 

 

3

%

 

 

Restructuring and related charges

0.07

 

 

0.10

 

 

3

%

 

 

Certain tax benefits

(0.09

)

 

(0.20

)

 

(10

)%

 

 

Adjusted earnings per share*

$

1.14

 

 

$

1.10

 

 

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

FY19

 

FY20

 

Change

 

 

Earnings per share (GAAP)

$

3.71

 

 

$

3.24

 

 

(13

)%

 

 

Restructuring and related charges

0.12

 

 

0.42

 

 

9

%

 

 

Certain tax benefits

(0.14

)

 

(0.20

)

 

(2

)%

 

 

Adjusted earnings per share*

$

3.69

 

 

$

3.46

 

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

FY2020E
Prior
Guidance

 

FY2021E

 

 

 

 

Earnings per share (GAAP)

$2.80 - $2.95

 

~ $3.11

 

 

 

 

Restructuring and related charges

~ 0.40

 

~ 0.28

 

 

 

 

OSI purchase accounting

~ -

 

~ 0.06

 

 

 

 

Adjusted earnings per share*

$3.20 - $3.35

 

~ $3.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT Margin

Q4 FY19

 

Q4 FY20

 

Change

 

 

Pretax margin (GAAP)

16.6

%

 

16.8

%

 

20 bps

 

 

Interest expense, net

0.8

%

 

0.9

%

 

10 bps

 

 

Earnings before interest and taxes margin*

17.4

%

 

17.7

%

 

30 bps

 

 

Restructuring and related charges

1.1

%

 

1.6

%

 

50 bps

 

 

Adjusted earnings before interest and taxes margin*

18.5

%

 

19.3

%

 

80 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automation Solutions Segment EBIT Margin

Q4 FY19

 

Q4 FY20

 

Change

 

 

Automation Solutions Segment EBIT margin (GAAP)

18.4

%

 

17.0

%

 

(140) bps

 

 

Restructuring charges impact

1.1

%

 

1.7

%

 

60 bps

 

 

Automation Solutions Adjusted Segment EBIT margin*

19.5

%

 

18.7

%

 

(80) bps

 

 

Depreciation / amortization

4.2

%

 

4.8

%

 

60 bps

 

 

Automation Solutions Adjusted Segment EBITDA margin*

23.7

%

 

23.5

%

 

(20) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Residential EBIT Margin

Q4 FY19

 

Q4 FY20

 

Change

 

 

Commercial & Residential EBIT margin (GAAP)

20.8

%

20.7

%

(10) bps

 

Restructuring charges impact

0.8

%

 

1.4

%

 

60 bps

 

 

Commercial & Residential Adjusted EBIT margin*

21.6

%

 

22.1

%

 

50 bps

 

 

Depreciation / amortization

3.8

%

 

4.5

%

 

70 bps

 

 

Commercial & Residential Adjusted EBITDA margin*

25.4

%

 

26.6

%

 

120 bps

 

 

 

 

 

 

 

 

 

 

Q4 Cash Flow

 

 

 

Q4 FY19

 

Q4 FY20

 

% Change

 

 

Operating cash flow (GAAP)

 

 

 

$

1,204

 

 

$

1,229

 

 

2

%

 

 

Capital expenditures

 

 

 

(199

)

 

(209

)

 

%

 

 

Free cash flow*

 

 

 

$

1,005

 

 

$

1,020

 

 

2

%

 

 

 

 

 

Cash Flow

 

 

 

FY 2019

 

FY 2020

 

% Change

 

 

Operating cash flow (GAAP)

 

 

 

$

3,006

 

 

$

3,083

 

 

3

%

 

 

Capital expenditures

 

 

 

(594

)

 

(538

)

 

3

%

 

 

Free cash flow*

 

 

 

$

2,412

 

 

$

2,545

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY 2021E Cash Flow

FY 2021E

 

 

 

 

 

 

Operating cash flow (GAAP)

~ $3,100

 

 

 

 

 

 

Capital expenditures

~ (600)

 

 

 

 

 

 

Free cash flow*

~ $2,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow to Net Earnings Conversion

Q4 FY20

 

FY20

 

 

 

 

Operating cash flow to net earnings (GAAP)

168

%

 

155

%

 

 

 

 

Capital expenditures

(28

)%

 

(27

)%

 

 

 

 

Free cash flow to net earnings*

140

%

 

128

%

 

 

 

 

 

 

 

 

 

 

 

 

Note: Underlying sales and orders exclude the impact of acquisitions, divestitures and currency translation.

 

 

 

 

 

 

 

 

 

 

 

 

 


Contacts

Investor Contact: Pete Lilly (314) 553-2197
Media Contact: Casey Murphy (314) 982-6220


Read full story here

HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE: COP) today announced the introduction of four innovations that will further enhance the functionality of its proprietary Optimized Cascade natural gas liquefaction process or OCP™ technology, which is currently licensed in 27 processing trains worldwide. In response to growth in the global LNG market and changes in industry contracting practices, the company is introducing new operational and control products designed to improve overall efficiency, enhance flexibility and reduce process costs.


The Traditional OCP Configuration – OCP Pro™ Technology

ConocoPhillips is the LNG industry leader in utilizing high efficiency aeroderivative gas turbine drivers, a core component of the Optimized Cascade process. The traditional OCP turbomachinery configuration, now called OCP Pro, matches one gas turbine driver to one refrigerant compression system. All existing OCP Pro LNG facilities are designed with two 50% refrigeration compressor trains in parallel serving one refrigeration process train. This configuration provides higher annual availability and greater turndown capability, while maintaining high thermal efficiency across a wide operating range. OCP Pro technology in a two-trains-in-one arrangement has a long history of industry-leading performance and will remain the configuration of choice for many developers of larger 3-to-8 MTPA baseload trains.

The Latest OCP Configuration – OCP Compass™ Technology

The LNG market is changing rapidly as demand has grown significantly, with many customers contracting in smaller parcels with more-flexible terms. On the supply side, new and existing facility developers are aggressively pursuing demand by focusing on reduced capital cost and risk. In response, ConocoPhillips has developed a new plant configuration, OCP Compass, to lower total installed cost by reducing the liquefaction train’s equipment count and footprint, and greatly simplifying modularization. OCP Compass facilities will deliver the same industry-leading performance and low greenhouse gas emissions as OCP Pro facilities. ConocoPhillips collaborated with Baker Hughes to develop a turbomachinery configuration coupling three refrigerant services on a single shaft driven by an aeroderivative gas turbine or electric motor. OCP Compass technology leverages advancements in large aeroderivative gas turbine technology, while utilizing high-pressure-ratio compressors to achieve enhanced performance with less equipment. OCP Compass configurations are ideal for midscale LNG applications in the 1-to-3 MTPA capacity range, in either single-string or two-trains-in-one configurations to provide higher capacity, availability and turndown. Multiple OCP Compass trains can be combined to address capacity requirements of larger baseload facilities (>3 MTPA), while capturing lower costs through replication of smaller liquefaction trains.

New Optimized Cascade Process Licensed Products – OCP CryoSep™ Technology and OCP Nitro™ Technology

ConocoPhillips now offers a licensed product for two innovative and proven OCP “sub-units” separately from the OCP Pro or OCP Compass technologies. ConocoPhillips will license its heavy removal unit (HRU) technology, OCP CryoSep, which recovers heavy hydrocarbons and removes components that would otherwise freeze in the liquefaction unit or lead to excessive BTU content. OCP CryoSep technology is already licensed for an external client’s development project, pending final investment decision. ConocoPhillips will also license its nitrogen removal unit (NRU) technology, OCP Nitro, to efficiently remove nitrogen from the LNG process, achieve product specifications and maximize production. OCP Nitro technology will be licensed as a bolt-on solution to existing OCP trains processing feed streams with higher nitrogen content than their original compositions. OCP Nitro technology is currently under evaluation for multiple licensed trains.

Improving the Value of OCP Facilities – OCP Navigator™ Software

ConocoPhillips has developed a unique software solution, OCP Navigator, for OCP-licensed facilities to optimize plant profitability, thermal efficiency and production. This multifunctional software system utilizes a customized equation-oriented simulation to help optimize the facility on a real-time basis. OCP Navigator software operates on a proprietary Aspen Technology software platform and was developed by ConocoPhillips to deliver optimized operating guidance and tools for plant operators and engineers. OCP Navigator software and associated services will be offered to licensees as a multi-year subscription, exclusively by ConocoPhillips LNG Licensing.

ConocoPhillips is continually leveraging its LNG expertise to provide additional OCP innovations to better meet rapidly changing LNG industry needs. Optimized Cascade® is a registered trademark of ConocoPhillips Company in the United States and certain other countries. OCP™, OCP Pro™, OCP Compass™, OCP CryoSep™, OCP Nitro™, and OCP Navigator™ are trademarks of the ConocoPhillips Company.

--- # # # ---

About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 15 countries, $63 billion of total assets, and approximately 9,800 employees at Sept. 30, 2020. Production excluding Libya averaged 1,108 MBOED for the nine months ended Sept. 30, 2020, and proved reserves were 5.3 BBOE as of Dec. 31, 2019. For more information, go to www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as "anticipate," "estimate," "believe," “budget,” "continue," "could," "intend," "may," "plan," "potential," "predict," “seek,” "should," "will," “would,” "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas and the resulting company actions in response to such changes, including changes resulting from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining, or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to liquidate the common stock issued to us by Cenovus Energy Inc. at prices we deem acceptable, or at all; our ability to complete our announced dispositions or acquisitions on the timeline currently anticipated, if at all; the possibility that regulatory approvals for our announced dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of our announced dispositions, acquisitions or our remaining business; business disruptions during or following our announced dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced dispositions in the manner and timeframe we currently anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; the impact of competition and consolidation in the oil and gas industry; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from extraordinary weather events, civil unrest, war, terrorism or a cyber attack; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.


Contacts

John C. Roper (media)
This email address is being protected from spambots. You need JavaScript enabled to view it.

AUSTIN, Texas--(BUSINESS WIRE)--USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for the third quarter 2020.


Third Quarter 2020 Highlights

  • Total revenues were $161.7 million for the third quarter 2020, compared to $175.8 million for the third quarter 2019.
  • Net income was $6.5 million for the third quarter 2020, compared to $13.3 million for the third quarter 2019.
  • Net cash provided by operating activities was $48.2 million for the third quarter 2020, compared to $61.3 million for the third quarter 2019.
  • Adjusted EBITDA was $103.9 million for the third quarter 2020, compared to $104.3 million for the third quarter 2019.
  • Distributable Cash Flow was $56.9 million for the third quarter 2020, compared to $54.9 million for the third quarter 2019.
  • Announced cash distribution of $0.525 per common unit for the third quarter 2020, consistent with the third quarter 2019.
  • Distributable Cash Flow Coverage was 1.12x for the third quarter 2020, compared to 1.08x for the third quarter 2019.

“USA Compression’s third quarter reflected the stability that is inherent in our compression services business, which since our founding has been focused on large horsepower, infrastructure-oriented natural gas applications. This emphasis results in solid revenues and cash flows as well as attractive operating margins,” commented Eric D. Long, USA Compression’s President and Chief Executive Officer. “The broader natural gas market demonstrated meaningful resiliency during the quarter, with less-than-anticipated demand destruction and improving commodity pricing as we neared the end of the quarter, which has continued into the current period. Natural gas remains an important clean-burning fuel whose use in this country and globally will continue to be critical for power generation and industrial purposes for years to come.”

He continued, “Our continued focus on expenses and capital allocation led to strong operating margins, even in a period of decreased revenues. Over the course of the third quarter, we saw business activity with our customers begin to pick up, with additional unit deployments and increased quote activity. While many of our customers are presently in the midst of their budget process and have not yet committed to spending plans and targets for next year, we expect the positive macro environment to lend support to our business as we enter 2021.”

“Expectations for a tight supply-demand balance have helped push up futures prices to more attractive levels as we enter the winter heating season. We have seen the anticipated declines of gas volumes from associated gas fields like the Permian and the Mid-Continent, and as expected, other areas, including Appalachia and the Haynesville have stepped in to help bridge the supply gap. Our diversified footprint provides us the opportunity to focus our resources in the most active areas.”

Expansion capital expenditures were $15.3 million, maintenance capital expenditures were $4.7 million and cash interest expense, net was $29.8 million for the third quarter 2020.

On October 15, 2020, the Partnership announced a third quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution will be paid on November 6, 2020 to common unitholders of record as of the close of business on October 26, 2020.

Operational and Financial Data

 

Three Months Ended

 

September 30,
2020

 

June 30,
2020

 

September 30,
2019

Operational data:

 

 

 

 

 

Fleet horsepower (at period end)

3,725,053

 

 

3,718,092

 

 

3,678,804

 

Revenue generating horsepower (at period end)

3,009,773

 

 

3,125,909

 

 

3,278,947

 

Average revenue generating horsepower

3,042,786

 

 

3,191,348

 

 

3,258,125

 

Revenue generating compression units (at period end)

3,984

 

 

4,206

 

 

4,546

 

Horsepower utilization (at period end) (1)

83.2

%

 

86.2

%

 

93.7

%

Average horsepower utilization (for the period) (1)

83.9

%

 

88.0

%

 

93.9

%

 

 

 

 

 

 

Financial data ($ in thousands, except per horsepower data):

 

 

 

 

 

Revenue

$

161,666

 

 

$

168,651

 

 

$

175,756

 

Average revenue per revenue generating horsepower per month (2)

$

16.62

 

 

$

16.79

 

 

$

16.73

 

Net income

$

6,519

 

 

$

2,684

 

 

$

13,315

 

Operating income

$

38,771

 

 

$

34,894

 

 

$

46,164

 

Net cash provided by operating activities

$

48,219

 

 

$

97,355

 

 

$

61,294

 

Gross margin

$

54,879

 

 

$

58,345

 

 

$

60,820

 

Adjusted gross margin (3)(4)

$

114,951

 

 

$

118,683

 

 

$

118,333

 

Adjusted gross margin percentage

71.1

%

 

70.4

%

 

67.3

%

Adjusted EBITDA (4)

$

103,940

 

 

$

105,481

 

 

$

104,327

 

Adjusted EBITDA percentage

64.3

%

 

62.5

%

 

59.4

%

Distributable Cash Flow (4)

$

56,911

 

 

$

58,686

 

 

$

54,933

 

________________________

(1)

Horsepower utilization is calculated as (i) the sum of (a) revenue generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is subject to a purchase order, divided by (ii) total available horsepower less idle horsepower that is under repair.

 

Horsepower utilization based on revenue generating horsepower and fleet horsepower was 80.8%, 84.1% and 89.1% at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

 

Average horsepower utilization based on revenue generating horsepower and fleet horsepower was 81.7%, 86.0% and 88.9% for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

(2)

Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue generating horsepower at the end of each month in the period.

(3)

Adjusted gross margin was previously presented as gross operating margin. The definition of Adjusted gross margin is identical to the definition of gross operating margin previously presented. For the definition of Adjusted gross margin, see the “Non-GAAP Financial Measures” section below.

(4)

Adjusted gross margin, Adjusted EBITDA and Distributable Cash Flow are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below.

Liquidity and Long-Term Debt

As of September 30, 2020, the Partnership was in compliance with all covenants under its $1.6 billion revolving credit facility. As of September 30, 2020, the Partnership had outstanding borrowings under the revolving credit facility of $496.9 million, $1.1 billion of borrowing base availability and, subject to compliance with the applicable financial covenants, available borrowing capacity of $411.8 million. As of September 30, 2020, the outstanding aggregate principal amount of the Partnership’s 6.875% senior notes due 2026 and 6.875% senior notes due 2027 was $725.0 million and $750.0 million, respectively.

Full-Year 2020 Outlook

USA Compression is updating its full-year 2020 guidance as follows:

  • Net loss range of $600.0 million to $590.0 million;
  • A forward-looking estimate of net cash provided by operating activities is not provided because the items necessary to estimate net cash provided by operating activities, in particular the change in operating assets and liabilities, are not accessible or estimable at this time. The Partnership does not anticipate the changes in operating assets and liabilities to be material, but changes in accounts receivable, accounts payable, accrued liabilities and deferred revenue could be significant, such that the amount of net cash provided by operating activities would vary substantially from the amount of projected Adjusted EBITDA and Distributable Cash Flow;
  • Adjusted EBITDA range of $405.0 million to $415.0 million; and
  • Distributable Cash Flow range of $210.0 million to $220.0 million.

Conference Call

The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss third quarter 2020 performance. The call will be broadcast live over the Internet. Investors may participate either by phone or audio webcast.

By Phone:

 

Dial 800-367-2403 inside the U.S. and Canada at least 10 minutes before the call and ask for the USA Compression Partners Earnings Call. Investors outside the U.S. and Canada should dial 334-777-6978. The conference ID for both is 2953707.

 

 

 

 

 

A replay of the call will be available through November 13, 2020. Callers inside the U.S. and Canada may access the replay by dialing 888-203-1112. Investors outside the U.S. and Canada should dial 719-457-0820. The conference ID for both is 2953707.

 

 

 

By Webcast:

 

Connect to the webcast via the “Events” page of USA Compression’s Investor Relations website at http://investors.usacompression.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call.

About USA Compression Partners, LP

USA Compression Partners, LP is a growth-oriented Delaware limited partnership that is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers and transporters of natural gas and crude oil. USA Compression focuses on providing natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities and transportation applications. More information is available at usacompression.com.

Non-GAAP Financial Measures

This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.

Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes that Adjusted gross margin is useful as a supplemental measure to investors of the Partnership’s operating profitability. Adjusted gross margin is impacted primarily by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume and per unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin, its most directly comparable GAAP financial measure, or any other measure of financial performance presented in accordance with GAAP. Moreover, Adjusted gross margin as presented may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its costs. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes that it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability.

Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis both as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year and budget. The Partnership defines EBITDA as net income before net interest expense, depreciation and amortization expense, and income tax expense. The Partnership defines Adjusted EBITDA as EBITDA plus impairment of compression equipment, impairment of goodwill, interest income on capital lease, unit-based compensation expense, severance charges, certain transaction expenses, loss (gain) on disposition of assets and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of its financial statements, such as investors and commercial banks, to assess:

  • the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure or historical cost basis of the Partnership’s assets;
  • the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;
  • the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and
  • the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure.

Management believes that Adjusted EBITDA provides useful information to investors because, when viewed with GAAP results and the accompanying reconciliations, it provides a more complete understanding of the Partnership’s performance than GAAP results alone. Management also believes that external users of its financial statements benefit from having access to the same financial measures that management uses in evaluating the results of the Partnership’s business.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income, operating income, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP as measures of operating performance and liquidity. Moreover, Adjusted EBITDA as presented may not be comparable to similarly titled measures of other companies.

Distributable Cash Flow is defined as net income plus non-cash interest expense, non-cash income tax expense, depreciation and amortization expense, unit-based compensation expense, impairment of compression equipment, impairment of goodwill, certain transaction expenses, severance charges, loss (gain) on disposition of assets, proceeds from insurance recovery and other, less distributions on the Partnership’s Series A Preferred Units (“Preferred Units”) and maintenance capital expenditures.

Distributable Cash Flow should not be considered as an alternative to, or more meaningful than, net income, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance and liquidity. Moreover, the Partnership’s Distributable Cash Flow as presented may not be comparable to similarly titled measures of other companies.

Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors and others to compare basic cash flows the Partnership generates (after distributions on the Partnership’s Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions the Partnership expects to pay its common unitholders.

Distributable Cash Flow Coverage Ratio is defined as Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it allows management, investors and others to gauge the Partnership’s ability to pay distributions to common unitholders using the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio as presented may not be comparable to similarly titled measures of other companies.

This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership in its 2020 fiscal year. A forward-looking estimate of net cash provided by operating activities and reconciliations of the forward-looking estimates of Adjusted EBITDA and Distributable Cash Flow to net cash provided by operating activities are not provided because the items necessary to estimate net cash provided by operating activities, in particular the change in operating assets and liabilities, are not accessible or estimable at this time. The Partnership does not anticipate the changes in operating assets and liabilities to be material, but changes in accounts receivable, accounts payable, accrued liabilities and deferred revenue could be significant, such that the amount of net cash provided by operating activities would vary substantially from the amount of projected Adjusted EBITDA and Distributable Cash Flow.

See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.

Forward-Looking Statements

Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2020 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include:

  • changes in the long-term supply of and demand for crude oil and natural gas, including as a result of uncertainty regarding the length of time it will take for the United States and the rest of the world to slow the spread of COVID-19 to the point where applicable authorities are comfortable continuing to ease, or declining to reinstate certain restrictions on various commercial and economic activities; such restrictions are designed to protect public health but also have the effect of significantly reducing demand for crude oil and natural gas;
  • the severity and duration of world health events, including the recent COVID-19 outbreak, related economic repercussions, actions taken by governmental authorities and other third parties in response to the pandemic and the resulting severe disruption in the oil and gas industry and negative impact on demand for oil and gas, which continues to negatively impact our business;
  • changes in general economic conditions and changes in economic conditions of the crude oil and natural gas industries specifically, including the ability of members of the Organization of the Petroleum Exporting Countries (“OPEC”) and Russia (together with OPEC and other allied producing countries, “OPEC+”) to agree on and comply with supply limitations;
  • uncertainty regarding the timing, pace and extent of an economic recovery in the United States and elsewhere, which in turn will likely affect demand for crude oil and natural gas and therefore the demand for the compression and treating services we provide and the commercial opportunities available to us;
  • the deterioration of the financial condition of our customers, which may result in the initiation of bankruptcy proceedings with respect to customers;
  • renegotiation of material terms of customer contracts;
  • competitive conditions in our industry;
  • our ability to realize the anticipated benefits of acquisitions;
  • actions taken by our customers, competitors and third-party operators;
  • changes in the availability and cost of capital;
  • operating hazards, natural disasters, epidemics, pandemics (such as COVID-19), weather-related delays, casualty losses and other matters beyond our control;
  • operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions;
  • the effects of existing and future laws and governmental regulations;
  • the effects of future litigation;
  • factors described in Part I, Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2020, Part II Item 1A (“Risk Factors”) of the Partnership’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which was filed with the SEC on May 5, 2020, and subsequently filed reports; and
  • other factors discussed in the Partnership’s filings with the SEC.

All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

 

USA COMPRESSION PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per unit amounts Unaudited)

 

 

Three Months Ended

 

September 30,
2020

 

June 30,
2020

 

September 30,
2019

Revenues:

 

 

 

 

 

Contract operations

$

156,632

 

 

$

162,993

 

 

$

166,197

 

Parts and service

1,986

 

 

2,736

 

 

4,460

 

Related party

3,048

 

 

2,922

 

 

5,099

 

Total revenues

161,666

 

 

168,651

 

 

175,756

 

Costs and expenses:

 

 

 

 

 

Cost of operations, exclusive of depreciation and amortization

46,715

 

 

49,968

 

 

57,423

 

Depreciation and amortization

60,072

 

 

60,338

 

 

57,513

 

Selling, general and administrative

12,716

 

 

20,315

 

 

16,631

 

Loss (gain) on disposition of assets

1,686

 

 

(787)

 

 

(1,975)

 

Impairment of compression equipment

1,706

 

 

3,923

 

 

 

Total costs and expenses

122,895

 

 

133,757

 

 

129,592

 

Operating income

38,771

 

 

34,894

 

 

46,164

 

Other income (expense):

 

 

 

 

 

Interest expense, net

(32,004)

 

 

(31,815)

 

 

(32,626)

 

Other

20

 

 

24

 

 

21

 

Total other expense

(31,984)

 

 

(31,791)

 

 

(32,605)

 

Net income before income tax expense

6,787

 

 

3,103

 

 

13,559

 

Income tax expense

268

 

 

419

 

 

244

 

Net income

6,519

 

 

2,684

 

 

13,315

 

Less: distributions on Preferred Units

(12,188)

 

 

(12,188)

 

 

(12,188)

 

Net income (loss) attributable to common and Class B unitholders’ interests

$

(5,669)

 

 

$

(9,504)

 

 

$

1,127

 

 

 

 

 

 

 

Net income (loss) attributable to:

 

 

 

 

 

Common units

$

(5,669)

 

 

$

(9,504)

 

 

$

2,084

 

Class B Units

$

 

 

$

 

 

$

(957)

 

 

 

 

 

 

 

Weighted average common units outstanding – basic

96,882

 

 

96,781

 

 

94,625

 

 

 

 

 

 

 

Weighted average common units outstanding – diluted

96,882

 

 

96,781

 

 

94,846

 

 

 

 

 

 

 

Weighted average Class B Units outstanding – basic and diluted

 

 

 

 

2,017

 

 

 

 

 

 

 

Basic and diluted net income (loss) per common unit

$

(0.06)

 

 

$

(0.10)

 

 

$

0.02

 

 

 

 

 

 

 

Basic and diluted net loss per Class B Unit

$

 

 

$

 

 

$

(0.47)

 

 

 

 

 

 

 

Distributions declared per common unit

$

0.525

 

 

$

0.525

 

 

$

0.525

 


Contacts

USA Compression Partners, LP
Matthew C. Liuzzi
Chief Financial Officer
512-369-1624
This email address is being protected from spambots. You need JavaScript enabled to view it.


Read full story here

DUBLIN--(BUSINESS WIRE)--The "Mauritius Energy Requirements Forecasted to 2050" report has been added to ResearchAndMarkets.com's offering.


The scope outlook for this report is from 2020 to 2050 integrating all end user energy carrier generation outputs into a coherent energy mix to meet the needs of an increasingly urbanised population and growing economy. The primary energy carriers are all analysed and forecasted. The economic effects of the Covid-19 Corona virus pandemic, particularly on energy production and consumption, are analysed extensively in the report.

Key Topics Covered:

  • Scope
  • Methodology
  • Key Findings
  • Introduction
  • Corona Virus Shock
  • World Economic Outlook
  • Sectoral Growth of Energy
  • 2020 Consumption of Energy
  • 2050 Consumption of Energy
  • Glossary and References

For more information about this report visit https://www.researchandmarkets.com/r/eyrvro


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

HOUSTON & LONDON--(BUSINESS WIRE)--Baker Hughes (NYSE: BKR) announced today it is acquiring Compact Carbon Capture (3C), a pioneering technology development company specializing in carbon capture solutions. The acquisition underpins Baker Hughes’ strategic commitment to lead in the energy transition by providing decarbonization solutions for carbon-intensive industries, including oil and gas and broader industrial operations.


The advancement of carbon capture technology solutions is widely considered critical to delivering the additional CO2 emissions reduction needed to meet global 2050 climate targets. In the energy and industrial sectors, carbon capture technology is among the most viable decarbonization paths for both retrofitting existing assets as well as for greenfield projects. 3C’s technology can address CO2 capture from different emission sources and can contribute significantly to the decarbonization of customers’ operations.

3C’s technology differs from traditional carbon capture solvent-based solutions by using rotating beds instead of static columns, effectively distributing solvents in a compact and modularized format. The rotating bed technology enhances the carbon capture process resulting in up to 75% smaller footprint and lower capital expenditures. In addition, 3C’s modular and scalable configuration can be easily deployed into existing brownfield applications and can be optimized for a broad range of capacity and applications, including offshore and industrial emitters.

Baker Hughes’ 100+ years of rotating equipment expertise, including in modularized and decarbonization process solutions, will provide an unmatched opportunity to scale and commercialize 3C’s technology. As part of the agreement, Baker Hughes will accelerate the development of the technology, leading to commercial deployment for customers globally.

“The addition of 3C to our energy technology portfolio complements our strategy, technology and manufacturing strengths in the area of carbon capture,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “This agreement highlights our deliberate and disciplined approach to invest in the energy transition. We are positioning our portfolio for new energy frontiers, and we believe there will be strong growth potential of carbon capture for both industrial applications and oil and gas projects. By incubating 3C’s technology, we can develop a roadmap to provide one of the industry’s lowest cost per ton carbon capture solutions.”

“Our technology plays an important role in the energy transition, and we believe this agreement with Baker Hughes is the right step to grow,” said Torleif Madsen, CEO of 3C. “As we focus on our long-term vision to develop the world’s leading carbon capture offerings, we will leverage Baker Hughes’ strong brand and technology position in the energy industry to further expand our solution by complementing it with world-class turbomachinery and process solutions and access to a global customer base. This is an immense opportunity and we are proud to join the Baker Hughes team.”

The acquisition further complements the existing Baker Hughes CCUS portfolio offering, which includes turbomachinery, solvent-based state of the art capture processes (CAP), well construction and management for CO2 storage, and advanced digital monitoring solutions.

The agreement includes all intellectual property, personnel and commercial agreements. ABG Sundal Collier acted as advisors to 3C.

About Baker Hughes:

Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and with operations in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

About Compact Carbon Capture:

Compact Carbon Capture AS (3C) was founded through the collaboration between Fjell Technology Group AS, Equinor ASA, Prototech AS and SINTEF. The first patent for the technology was granted in 1999 after which it was tested and developed together with several partners including Fjell Technology Group AS and Equinor AS who respectively at different stages led the management of the technology development program between 2007 and 2017. In 2018, 3C was fully established as a company, during which the IP and know-how from both the Equinor and the Fjell Technology Group management periods was fully transferred to 3C. Currently 3C runs its technology development with several partners including Equinor, Fjell Technology Group, Sintef and Prototech and benefits from Norwegian Government incentives through Climit. Headquartered at Marineholmen in Bergen, Norway, 3C collaborates with R&D partners and industrial partners both nationally and globally. In March 2020, 3C was named an Energy Innovation Pioneer as part of IHS Markit’s CERAWeek program. For more information visit: compactcarbon.com


Contacts

Investor Relations
Jud Bailey
+1 281-809-9088
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media Relations
Thomas Millas
+1 713-879-2862
This email address is being protected from spambots. You need JavaScript enabled to view it.

LUXEMBOURG--(BUSINESS WIRE)--Pacific Drilling S.A. (NYSE: PACD) announced today that it has received notice from the New York Stock Exchange (“NYSE”), that as a result of the filing of its voluntary petition for reorganization (the “Plan of Reorganization”) under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, and in accordance with Section 802.01D of the NYSE Listed Company Manual, the NYSE has commenced proceedings to delist Pacific Drilling’s common shares from the NYSE. The NYSE also indefinitely suspended trading of Pacific Drilling’s common shares effective November 2, 2020.

The NYSE will apply to the Securities and Exchange Commission (“SEC”) to delist the Company’s common shares upon completion of all applicable procedures. In reaching its determination, the NYSE noted the uncertainty as to the ultimate effect of the bankruptcy process on the value of the Company’s common shares. The NYSE also noted that holders of the common shares will receive no recovery under the prearranged Plan of Reorganization.

Pacific Drilling does not intend to appeal the determination and, therefore, it is expected that the common shares will be delisted.

The Company’s common shares will commence trading in the over-the-counter (“OTC”) market on the Pink Open Market on Tuesday, November 3, 2020. The Company’s NYSE ticker symbol “PACD” will be discontinued and its OTC ticker symbol will be “PACDQ.”

This transition to the OTC market does not affect the Company's business operations and will not change its obligation in the near-term to file periodic and certain other reports with the SEC under applicable federal securities laws. However, in addition to providing that holders of the Company’s commons shares will receive no recovery for their shares, the Plan of Reorganization also calls for the Company to suspend its SEC reporting obligations either before or shortly after its emergence from the Chapter 11 proceedings. Until completion of the Chapter 11 proceedings, shareholders will continue to own their Company common shares and commencing November 3, 2020 will be able to trade them on the Pink Open Market. However, due to the risks and uncertainties resulting from the Chapter 11 proceedings, trading in the Company’s common shares during the pendency of the Chapter 11 proceedings poses substantial risks.

About Pacific Drilling

With our best-in-class drillships and highly experienced team, Pacific Drilling is committed to exceeding our customers’ expectations by delivering the safest, most efficient and reliable deepwater drilling services in the industry. Pacific Drilling’s fleet of seven drillships represents one of the youngest and most technologically advanced fleets in the world. For more information about Pacific Drilling, including the Chapter 11 proceedings and the Plan of Reorganization, please visit our website at www.pacificdrilling.com/Restructuring.

Forward-Looking Statements

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are generally identifiable by their use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “our ability to,” “may,” “plan,” “potential,” “predict,” “project,” “projected,” “should,” “will,” “would”, or other similar words which are not generally historical in nature. The forward-looking statements speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Our forward-looking statements express our current expectations or forecasts of possible future results or events, including the potential outcome of the Chapter 11 proceedings; the future impact of the COVID-19 pandemic on our business, future financial and operational performance and cash balances; our future liquidity position and future efforts to improve our liquidity position; revenue efficiency levels; market outlook; forecasts of trends; future client contract opportunities; future contract dayrates; our business strategies and plans or objectives of management; estimated duration of client contracts; backlog; expected capital expenditures; projected costs and savings; expectations regarding the outcome of the ongoing bankruptcy proceedings of our two subsidiaries against whom the arbitration award related to the drillship known as the Pacific Zonda in favor of Samsung Heavy Industries Co. Ltd. (“SHI”) was rendered and the potential impact of the arbitration tribunal’s decision on our future operations, financial position, results of operations and liquidity.

Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees, and actual future results may differ materially due to a variety of factors. These statements are subject to a number of risks and uncertainties and are based on a number of judgments and assumptions as of the date such statements are made about future events, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in such statements due to a variety of factors, including if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect.

Important factors that could cause actual results to differ materially from our expectations include: the potential outcome of our Chapter 11 proceedings; evolving risks from the COVID-19 outbreak and resulting significant disruption in international economies, and international financial and oil markets, including a substantial decline in the price of oil during 2020, which if sustained would continue to have a material adverse effect on our financial condition, results of operations and cash flow; changes in actual and forecasted worldwide oil and gas supply and demand and prices, and the related impact on demand for our services; the offshore drilling market, including changes in capital expenditures by our clients; rig availability and supply of, and demand for, high-specification drillships and other drilling rigs competing with our fleet; our ability to enter into and negotiate favorable terms for new drilling contracts or extensions of existing drilling contracts; our ability to successfully negotiate and consummate definitive contracts and satisfy other customary conditions with respect to letters of intent and letters of award that the Company receives for our drillships; actual contract commencement dates; possible cancellation, renegotiation, termination or suspension of drilling contracts as a result of mechanical difficulties, performance, market changes or other reasons; costs related to stacking of rigs and costs to reactivate a stacked rig; downtime and other risks associated with offshore rig operations, including unscheduled repairs or maintenance, relocations, severe weather or hurricanes or accidents; our small fleet and reliance on a limited number of clients; the outcome of our subsidiaries’ bankruptcy proceedings and any actions that SHI or others may take in the bankruptcy or other proceedings against the Company and our subsidiaries; our ability to continue as a going concern; our ability to obtain Bankruptcy Court approval with respect to motions or other requests made to the Bankruptcy Court in the Chapter 11 proceedings; our ability to confirm and consummate the prearranged Plan of Reorganization; the effects of the Chapter 11 proceedings on our operations and agreements, including our relationships with employees, regulatory authorities, customers, suppliers, banks and other financing sources, insurance companies and other third parties; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 proceedings; risks associated with third-party motions in the Chapter 11 proceedings, which may interfere with our ability to confirm and consummate the prearranged Plan of Reorganization; increased advisory costs to execute the prearranged Plan of Reorganization; the potential adverse effects of the Chapter 11 proceedings on our liquidity, results of operations, or business prospects; increased administrative and legal costs related to the Chapter 11 proceedings and other litigation and the inherent risks involved in a bankruptcy process; the potential effects of the delisting of our common shares from trading on the NYSE, including how long our common shares will trade on the OTC market; the potential effects of the anticipated suspension by the Company of its SEC reporting obligations; and the other risk factors described in our 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2020, as updated by our Quarterly Reports on Form 10-Q as filed with the SEC on May 8, 2020 and August 7, 2020 and subsequent filings with the SEC. These documents are available through our website at www.pacificdrilling.com or through the SEC’s website at www.sec.gov.


Contacts

Investor Contact:
James Harris
Pacific Drilling S.A.
+713 334 6662
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media Contact:
Amy L. Roddy
Pacific Drilling S.A.
+713 334 6662
This email address is being protected from spambots. You need JavaScript enabled to view it.

SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced third quarter 2020 financial results including the following highlights compared to the same quarter of 2019:

  • Diluted Net Earnings Attributable to Shareholders per share (EPS1) increased 22% to $1.12
  • Net Earnings Attributable to Shareholders increased 19% to $191 million
  • Operating Income increased 22% to $252 million
  • Revenues increased 19% to $2.5 billion
  • Airfreight tonnage volume and ocean container volume both decreased 5%

“Volumes started to recover across most of our products during the quarter, even as the global effects of COVID-19 continued to impact our business worldwide,” said Jeffrey S. Musser, President and Chief Executive Officer. “Similar to Q2, the pandemic caused an increase in demand for certain goods at the same time that air capacity remained tight due to travel restrictions and the limited schedule of domestic and international passenger flights. This caused continued imbalances between carrier capacity and demand, principally on exports out of North Asia, which was the only market in which air volumes increased during the third quarter. To meet the urgent transportation needs that could not be fulfilled with scheduled capacity, we utilized charter capacity for certain customers, resulting in higher average buy and sell rates. While airfreight buy and sell rates were generally lower in our third quarter than the extremes we experienced in the second quarter, they remained historically elevated and highly unpredictable due to ongoing supply/demand imbalances. We would expect air pricing to remain volatile until passenger traffic starts to return in a meaningful way.

“While our ocean freight business has not been nearly as impacted by supply constraints, carriers remain disciplined and are carefully managing capacity even as volumes have increased from the lows we saw earlier in this pandemic. Across most of our products in the third quarter, we experienced a steady recovery in demand as shippers adjusted to an altered marketplace and disrupted supply chains.

“Despite the challenges, we continue to serve our customers at the highest level throughout our organization, whether working from remote locations or on-site at one of our many warehouses, where we are following very strict safety protocols. Thanks to the ongoing implementation of our business continuity plans and the adaptability of our people, all of our offices remain open, connected, and are functioning extremely well. Our network is strong, and our people remain steadfast and highly flexible.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “The effects of COVID-19 continued to impact volumes for all products, although not as significantly as in the prior sequential quarter. While we have experienced increased demand in many of our markets for a mix of products, capacity constraints in air, and to a lesser extent in ocean, have led to a continued buy/sell rate imbalance. While we remain uncertain about the pace, strength, or evenness of an economic recovery, we will continue to use our strong financial position to make important strategic investments that are necessary for our future growth, while continuing our focus on controlling costs and improving operational efficiencies. We appreciate the hard work of our District Managers and their leadership teams as they continue to execute at a high level, control operational expenses and limit the addition of headcount.”

Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.

_______________________

1Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

Expeditors International of Washington, Inc.

Third Quarter 2020 Earnings Release, November 3, 2020

Financial Highlights for the three and nine months ended September 30, 2020 and 2019 (Unaudited)

(in 000's of US dollars except per share data)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2020

 

 

2019

 

 

% Change

 

 

2020

 

 

2019

 

 

% Change

 

Revenues

 

$

2,464,797

 

 

$

2,074,855

 

 

19

%

 

 

$

6,947,293

 

 

$

6,130,485

 

 

13

%

 

Directly related cost of transportation and other expenses1

 

$

1,730,418

 

 

$

1,400,499

 

 

24

%

 

 

$

4,848,187

 

 

$

4,140,320

 

 

17

%

 

Salaries and other operating expenses2

 

$

482,434

 

 

$

467,806

 

 

3

%

 

 

$

1,440,480

 

 

$

1,403,813

 

 

3

%

 

Operating income

 

$

251,945

 

 

$

206,550

 

 

22

%

 

 

$

658,626

 

 

$

586,352

 

 

12

%

 

Net earnings attributable to shareholders

 

$

191,307

 

 

$

160,221

 

 

19

%

 

 

$

497,520

 

 

$

453,069

 

 

10

%

 

Diluted earnings attributable to shareholders per share

 

$

1.12

 

 

$

0.92

 

 

22

%

 

 

$

2.92

 

 

$

2.60

 

 

12

%

 

Basic earnings attributable to shareholders per share

 

$

1.14

 

 

$

0.94

 

 

21

%

 

 

$

2.96

 

 

$

2.65

 

 

12

%

 

Diluted weighted average shares outstanding

 

 

170,735

 

 

 

173,483

 

 

 

 

 

 

 

170,539

 

 

174,463

 

 

 

 

 

Basic weighted average shares outstanding

 

 

168,310

 

 

 

170,415

 

 

 

 

 

 

 

167,942

 

 

171,084

 

 

 

 

 

1Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.

2Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Condensed Consolidated Statements of Earnings.

During the three months ended September 30, 2020, we did not repurchase any shares of common stock and during the nine months ended September 30, 2020, we repurchased 4.4 million shares of common stock at an average price of $71.41 per share. During the three and nine months ended September 30, 2019, we repurchased 0.9 million and 4.1 million shares of common stock at an average price of $69.51 and $72.60 per share, respectively.

 

 

Employee Full-time Equivalents as of September 30,

 

 

 

2020

 

 

2019

 

North America

 

 

6,666

 

 

 

6,861

 

Europe

 

 

3,361

 

 

 

3,427

 

North Asia

 

 

2,406

 

 

 

2,483

 

South Asia

 

 

1,643

 

 

 

1,674

 

Middle East, Africa and India

 

 

1,509

 

 

 

1,565

 

Latin America

 

 

800

 

 

 

860

 

Information Systems

 

 

975

 

 

 

939

 

Corporate

 

 

383

 

 

 

383

 

Total

 

 

17,743

 

 

 

18,192

 

 

 

Third quarter year-over-year

percentage (decrease) increase in:

 

2020

 

Airfreight

kilos

 

 

Ocean freight

FEU

 

July

 

(12

)%

 

 

(13

)%

 

August

 

(5

)%

 

 

(5

)%

 

September

 

2

%

 

 

5

%

 

Quarter

 

(5

)%

 

 

(5

)%

 

Investors may submit written questions via e-mail to: This email address is being protected from spambots. You need JavaScript enabled to view it.. Questions received by the end of business on November 6, 2020 will be considered in management's 8-K “Responses to Selected Questions.”

Disclaimer on Forward-Looking Statements:

Certain statements contained in this news release are “forward-looking statements” that involve risks and uncertainties, including statements such as our expectations of continued volatility in air pricing. Actual results could differ materially because of factors such as: the timing until passenger traffic starts to return in a meaningful way; the impact on our ocean volumes; the pace, strength, or evenness of the of an economic recovery; our employees’ ability to continue to perform at a high level; airfreight buy and sell rates; our access to carrier capacity; our ability to keep our global offices open and operating; employee retention; employee health and safety; our ability to execute our business continuity plans; the strength of our financial position and our ability to continue to make investments in our strategic initiatives; our ability to remain a strong, healthy, unified and resilient organization; our ability to control costs and improve operational efficiencies; our ability to control operational expenses and limit the addition of headcount. The COVID-19 pandemic could have the effect of heightening many of the other risks described in Item 1A of our Annual Report on Form 10-K, including, without limitation, those related to the success of our strategy and desire to maintain historical unitary profitability, our ability to attract and retain customers, our ability to manage costs, interruptions to our information technology systems, the ability of third-party providers to perform and potential litigation as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. These and other factors are discussed in the Company’s regulatory filings with the Securities and Exchange Commission, including those in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and in “Item 1A. Risk Factors” of the Company’s most recent Quarterly Report on Form 10-Q. The forward-looking statements contained in this news release speak only as of this date, and the Company does not assume any obligation to update them except as required by law.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

 

 

 

September 30,

2020

 

 

December 31,

2019

 

Assets:

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,465,510

 

 

$

1,230,491

 

Accounts receivable, less allowance for credit loss of $5,171 at September 30, 2020 and $11,143 at December 31, 2019

 

 

1,582,424

 

 

 

1,315,091

 

Deferred contract costs

 

 

232,351

 

 

 

131,783

 

Other

 

 

129,617

 

 

 

92,558

 

Total current assets

 

 

3,409,902

 

 

 

2,769,923

 

Property and equipment, less accumulated depreciation and amortization of $510,103 at September 30, 2020 and $478,906 at December 31, 2019

 

 

499,189

 

 

 

499,344

 

Operating lease right-of-use assets

 

 

422,002

 

 

 

390,035

 

Goodwill

 

 

7,927

 

 

 

7,927

 

Deferred federal and state income taxes, net

 

 

3,130

 

 

 

8,034

 

Other assets, net

 

 

16,404

 

 

 

16,621

 

Total assets

 

$

4,358,554

 

 

$

3,691,884

 

Liabilities:

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

888,761

 

 

$

735,695

 

Accrued expenses, primarily salaries and related costs

 

 

236,826

 

 

 

189,446

 

Contract liabilities

 

 

267,266

 

 

 

154,183

 

Current portion of operating lease liabilities

 

 

70,755

 

 

 

65,367

 

Federal, state and foreign income taxes

 

 

33,100

 

 

 

23,627

 

Total current liabilities

 

 

1,496,708

 

 

 

1,168,318

 

Noncurrent portion of operating lease liabilities

 

 

357,373

 

 

 

326,347

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

Preferred stock, none issued

 

 

 

 

 

Common stock, par value $0.01 per share. Issued and outstanding: 169,231 shares at September 30, 2020 and 169,622 shares at December 31, 2019

 

 

1,692

 

 

 

1,696

 

Additional paid-in capital

 

 

145,924

 

 

 

3,203

 

Retained earnings

 

 

2,489,694

 

 

 

2,321,316

 

Accumulated other comprehensive loss

 

 

(135,281

)

 

 

(131,187

)

Total shareholders’ equity

 

 

2,502,029

 

 

 

2,195,028

 

Noncontrolling interest

 

 

2,444

 

 

 

2,191

 

Total equity

 

 

2,504,473

 

 

 

2,197,219

 

Total liabilities and equity

 

$

4,358,554

 

 

$

3,691,884

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

$

1,093,550

 

 

$

715,450

 

 

$

3,237,179

 

 

$

2,171,928

 

Ocean freight and ocean services

 

 

612,858

 

 

 

585,374

 

 

 

1,597,997

 

 

 

1,697,824

 

Customs brokerage and other services

 

 

758,389

 

 

 

774,031

 

 

 

2,112,117

 

 

 

2,260,733

 

Total revenues

 

 

2,464,797

 

 

 

2,074,855

 

 

 

6,947,293

 

 

 

6,130,485

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

 

833,689

 

 

 

522,868

 

 

 

2,450,931

 

 

 

1,574,717

 

Ocean freight and ocean services

 

 

455,072

 

 

 

424,215

 

 

 

1,185,154

 

 

 

1,234,845

 

Customs brokerage and other services

 

 

441,657

 

 

 

453,416

 

 

 

1,212,102

 

 

 

1,330,758

 

Salaries and related

 

 

373,613

 

 

 

356,331

 

 

 

1,110,760

 

 

 

1,069,592

 

Rent and occupancy

 

 

42,484

 

 

 

41,987

 

 

 

126,383

 

 

 

124,407

 

Depreciation and amortization

 

 

15,851

 

 

 

12,386

 

 

 

42,620

 

 

 

38,456

 

Selling and promotion

 

 

2,945

 

 

 

10,133

 

 

 

14,301

 

 

 

32,852

 

Other

 

 

47,541

 

 

 

46,969

 

 

 

146,416

 

 

 

138,506

 

Total operating expenses

 

 

2,212,852

 

 

 

1,868,305

 

 

 

6,288,667

 

 

 

5,544,133

 

Operating income

 

 

251,945

 

 

 

206,550

 

 

 

658,626

 

 

 

586,352

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,504

 

 

 

5,501

 

 

 

8,870

 

 

 

18,123

 

Other, net

 

 

980

 

 

 

1,895

 

 

 

5,161

 

 

 

5,822

 

Other income, net

 

 

2,484

 

 

 

7,396

 

 

 

14,031

 

 

 

23,945

 

Earnings before income taxes

 

 

254,429

 

 

 

213,946

 

 

 

672,657

 

 

 

610,297

 

Income tax expense

 

 

62,710

 

 

 

53,319

 

 

 

173,968

 

 

 

156,029

 

Net earnings

 

 

191,719

 

 

 

160,627

 

 

 

498,689

 

 

 

454,268

 

Less net earnings attributable to the noncontrolling interest

 

 

412

 

 

 

406

 

 

 

1,169

 

 

 

1,199

 

Net earnings attributable to shareholders

 

$

191,307

 

 

$

160,221

 

 

$

497,520

 

 

$

453,069

 

Diluted earnings attributable to shareholders per share

 

$

1.12

 

 

$

0.92

 

 

$

2.92

 

 

$

2.60

 

Basic earnings attributable to shareholders per share

 

$

1.14

 

 

$

0.94

 

 

$

2.96

 

 

$

2.65

 

Weighted average diluted shares outstanding

 

 

170,735

 

 

 

173,483

 

 

 

170,539

 

 

 

174,463

 

Weighted average basic shares outstanding

 

 

168,310

 

 

 

170,415

 

 

 

167,942

 

 

 

171,084

 

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

191,719

 

 

$

160,627

 

 

$

498,689

 

 

$

454,268

 

Adjustments to reconcile net earnings to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions for losses on accounts receivable

 

 

398

 

 

 

757

 

 

 

4,607

 

 

 

453

 

Deferred income tax (benefit) expense

 

 

(1,276

)

 

 

(5,822

)

 

 

2,872

 

 

 

(17

)

Stock compensation expense

 

 

12,297

 

 

 

12,155

 

 

 

45,091

 

 

 

49,361

 

Depreciation and amortization

 

 

15,851

 

 

 

12,386

 

 

 

42,620

 

 

 

38,456

 

Other, net

 

 

2,919

 

 

 

652

 

 

 

3,470

 

 

 

812

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(106,065

)

 

 

43,885

 

 

 

(274,440

)

 

 

246,175

 

Increase (decrease) in accounts payable and accrued expenses

 

 

94,263

 

 

 

(58,816

)

 

 

201,940

 

 

 

(141,199

)

(Increase) decrease in deferred contract costs

 

 

(81,486

)

 

 

10,301

 

 

 

(99,887

)

 

 

28,550

 

Increase (decrease) in contract liabilities

 

 

91,638

 

 

 

(13,211

)

 

 

112,244

 

 

 

(36,933

)

(Decrease) in income taxes payable, net

 

 

(41,286

)

 

 

(671

)

 

 

(10,644

)

 

 

(33,284

)

(Increase) decrease in other, net

 

 

(17,373

)

 

 

(744

)

 

 

(13,242

)

 

 

47

 

Net cash from operating activities

 

 

161,599

 

 

 

161,499

 

 

 

513,320

 

 

 

606,689

 

Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(9,178

)

 

 

(15,521

)

 

 

(37,419

)

 

 

(37,943

)

Other, net

 

 

1,174

 

 

 

232

 

 

 

963

 

 

 

1,525

 

Net cash from investing activities

 

 

(8,004

)

 

 

(15,289

)

 

 

(36,456

)

 

 

(36,418

)

Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

121,430

 

 

 

60,713

 

 

 

174,016

 

 

 

120,190

 

Repurchases of common stock

 

 

 

 

 

(61,999

)

 

 

(314,225

)

 

 

(296,922

)

Dividends paid

 

 

 

 

 

 

 

 

(86,815

)

 

 

(85,184

)

Payments for taxes related to net share settlement of equity awards

 

 

 

 

 

 

 

 

(10,566

)

 

 

(6,674

)

Net cash from financing activities

 

 

121,430

 

 

 

(1,286

)

 

 

(237,590

)

 

 

(268,590

)

Effect of exchange rate changes on cash and cash equivalents

 

 

10,030

 

 

 

(11,604

)

 

 

(4,255

)

 

 

(9,446

)

Change in cash and cash equivalents

 

 

285,055

 

 

 

133,320

 

 

 

235,019

 

 

 

292,235

 

Cash and cash equivalents at beginning of period

 

 

1,180,455

 

 

 

1,082,650

 

 

 

1,230,491

 

 

 

923,735

 

Cash and cash equivalents at end of period

 

$

1,465,510

 

 

$

1,215,970

 

 

$

1,465,510

 

 

$

1,215,970

 

Taxes Paid:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

106,434

 

 

$

61,201

 

 

$

180,242

 

 

$

196,169

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Business Segment Information

(In thousands)

(Unaudited)

 

 

 

UNITED

STATES

 

 

OTHER

NORTH

AMERICA

 

 

LATIN

AMERICA

 

 

NORTH

ASIA

 

 

SOUTH

ASIA

 

 

EUROPE

 

 

MIDDLE

EAST,

AFRICA

AND

INDIA

 

 

ELIMI-

NATIONS

 

 

CONSOLI-

DATED

 

For the three months ended
September 30, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

686,245

 

 

 

78,129

 

 

 

39,193

 

 

 

883,104

 

 

 

267,228

 

 

 

378,048

 

 

 

133,765

 

 

 

(915

)

 

 

2,464,797

 

Directly related cost of transportation and other expenses2

 

$

379,588

 

 

 

44,911

 

 

 

23,361

 

 

 

720,807

 

 

 

200,334

 

 

 

261,325

 

 

 

100,619

 

 

 

(527

)

 

 

1,730,418

 

Salaries and other operating expenses3

 

$

197,749

 

 

 

25,325

 

 

 

12,359

 

 

 

81,876

 

 

 

39,926

 

 

 

96,658

 

 

 

28,925

 

 

 

(384

)

 

 

482,434

 

Operating income

 

$

108,908

 

 

 

7,893

 

 

 

3,473

 

 

 

80,421

 

 

 

26,968

 

 

 

20,065

 

 

 

4,221

 

 

 

(4

)

 

 

251,945

 

Identifiable assets at period end

 

$

2,336,071

 

 

 

163,943

 

 

 

76,173

 

 

 

689,525

 

 

 

231,771

 

 

 

642,124

 

 

 

228,423

 

 

 

(9,476

)

 

 

4,358,554

 

Capital expenditures

 

$

4,703

 

 

 

483

 

 

 

180

 

 

 

1,075

 

 

 

665

 

 

 

1,780

 

 

 

292

 

 

 

 

 

 

9,178

 

Equity

 

$

1,791,658

 

 

 

77,915

 

 

 

31,324

 

 

 

246,557

 

 

 

97,564

 

 

 

185,352

 

 

 

110,714

 

 

 

(36,611

)

 

 

2,504,473

 

For the three months ended
September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

692,229

 

 

 

88,088

 

 

 

38,341

 

 

 

624,351

 

 

 

196,569

 

 

 

320,769

 

 

 

115,397

 

 

 

(889

)

 

 

2,074,855

 

Directly related cost of transportation and other expenses2

 

$

389,254

 

 

 

51,420

 

 

 

22,990

 

 

 

489,195

 

 

 

145,345

 

 

 

221,149

 

 

 

81,592

 

 

 

(446

)

 

 

1,400,499

 

Salaries and other operating expenses3

 

$

210,767

 

 

 

25,731

 

 

 

14,547

 

 

 

70,410

 

 

 

32,482

 

 

 

86,156

 

 

 

28,151

 

 

 

(438

)

 

 

467,806

 

Operating income

 

$

92,208

 

 

 

10,937

 

 

 

804

 

 

 

64,746

 

 

 

18,742

 

 

 

13,464

 

 

 

5,654

 

 

 

(5

)

 

 

206,550

 

Identifiable assets at period end

 

$

2,059,345

 

 

 

128,336

 

 

 

72,029

 

 

 

489,322

 

 

 

164,976

 

 

 

563,289

 

 

 

226,657

 

 

 

2,499

 

 

 

3,706,453

 

Capital expenditures

 

$

7,644

 

 

 

513

 

 

 

833

 

 

 

523

 

 

 

631

 

 

 

5,119

 

 

 

258

 

 

 

 

 

 

15,521

 

Equity

 

$

1,578,682

 

 

 

60,526

 

 

 

27,217

 

 

 

216,061

 

 

 

77,733

 

 

 

169,450

 

 

 

111,355

 

 

 

(31,737

)

 

 

2,209,287

 

 

 

UNITED

STATES

 

 

OTHER

NORTH

AMERICA

 

 

LATIN

AMERICA

 

 

NORTH

ASIA

 

 

SOUTH

ASIA

 

 

EUROPE

 

 

MIDDLE

EAST,

AFRICA

AND

INDIA

 

 

ELIMI-

NATIONS

 

 

CONSOLI-

DATED

 

For the nine months ended
September 30, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

1,975,883

 

 

 

234,274

 

 

 

114,636

 

 

 

2,538,117

 

 

 

660,583

 

 

 

1,086,118

 

 

 

340,415

 

 

 

(2,733

)

 

 

6,947,293

 

Directly related cost of transportation and other expenses2

 

$

1,108,173

 

 

 

132,250

 

 

 

69,827

 

 

 

2,054,023

 

 

 

481,971

 

 

 

754,863

 

 

 

248,503

 

 

 

(1,423

)

 

 

4,848,187

 

Salaries and other operating expenses3

 

$

631,396

 

 

 

74,320

 

 

 

36,220

 

 

 

236,480

 

 

 

109,018

 

 

 

274,269

 

 

 

80,063

 

 

 

(1,286

)

 

 

1,440,480

 

Operating income

 

$

236,314

 

 

 

27,704

 

 

 

8,589

 

 

 

247,614

 

 

 

69,594

 

 

 

56,986

 

 

 

11,849

 

 

 

(24

)

 

 

658,626

 

Identifiable assets at period end

 

$

2,336,071

 

 

 

163,943

 

 

 

76,173

 

 

 

689,525

 

 

 

231,771

 

 

 

642,124

 

 

 

228,423

 

 

 

(9,476

)

 

 

4,358,554

 

Capital expenditures

 

$

28,276

 

 

 

1,692

 

 

 

498

 

 

 

1,785

 

 

 

1,035

 

 

 

3,418

 

 

 

715

 

 

 

 

 

 

37,419

 

Equity

 

$

1,791,658

 

 

 

77,915

 

 

 

31,324

 

 

 

246,557

 

 

 

97,564

 

 

 

185,352

 

 

 

110,714

 

 

 

(36,611

)

 

 

2,504,473

 

For the nine months ended
September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

2,033,088

 

 

 

265,035

 

 

 

111,277

 

 

 

1,879,155

 

 

 

555,128

 

 

 

952,790

 

 

 

336,383

 

 

 

(2,371

)

 

 

6,130,485

 

Directly related cost of transportation and other expenses2

 

$

1,142,701

 

 

 

157,997

 

 

 

64,149

 

 

 

1,475,395

 

 

 

407,642

 

 

 

657,720

 

 

 

236,184

 

 

 

(1,468

)

 

 

4,140,320

 

Salaries and other operating expenses3

 

$

636,243

 

 

 

76,283

 

 

 

41,342

 

 

 

208,781

 

 

 

97,324

 

 

 

258,339

 

 

 

86,385

 

 

 

(884

)

 

 

1,403,813

 

Operating income

 

$

254,144

 

 

 

30,755

 

 

 

5,786

 

 

 

194,979

 

 

 

50,162

 

 

 

36,731

 

 

 

13,814

 

 

 

(19

)

 

 

586,352

 

Identifiable assets at period end

 

$

2,059,345

 

 

 

128,336

 

 

 

72,029

 

 

 

489,322

 

 

 

164,976

 

 

 

563,289

 

 

 

226,657

 

 

 

2,499

 

 

 

3,706,453

 

Capital expenditures

 

$

23,544

 

 

 

1,509

 

 

 

1,071

 

 

 

1,167

 

 

 

1,235

 

 

 

8,015

 

 

 

1,402

 

 

 

 

 

 

37,943

Equity

 

$

1,578,682

 

 

 

60,526

 

 

 

27,217

 

 

 

216,061

 

 

 

77,733

 

 

 

169,450

 

 

 

111,355

 

 

 

(31,737

)

 

 

2,209,287

 

 

1Beginning in the second quarter of 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation and other expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. The change in presentation had nine months ended September 30, 2019, segment revenues have not been revised.

2Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.

3Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Condensed Consolidated Statements of Earnings.

The Company’s consolidated financial results in the nine months ended September 30, 2020 was significantly impacted by the effects of the global pandemic and are expected to be further impacted in the remainder of 2020. The impact is affecting the Company’s geographical segments unevenly.

In the second and third quarter of 2020, North Asia experienced significant increases in airfreight services revenues and directly related expenses primarily as a result of demand for time-sensitive delivery of technology equipment and medical equipment and supplies from China, which combined with reductions in airfreight supply resulted in significantly higher rates. In the third quarter 2020 and 2019, the People's Republic of China, including Hong Kong, represented 30% and 26%, respectively, of the Company’s total revenues and 26% of the Company’s total operating income in both periods.

This is in contrast with slower activity in North Asia in the first quarter of 2020 as the global pandemic resulted in temporary closures and limited operations from the Company’s China offices and shipments that were rerouted or delayed by customers and service providers taking their own precautionary measures. In the nine months ended September 30, 2020 and 2019, the People's Republic of China, including Hong Kong, represented 31% and 26%, respectively, of the Company’s total revenues and 30% and 27%, respectively, of the Company’s total operating income.


Contacts

Jeffrey S. Musser
President and Chief Executive Officer
(206) 674-3433

Bradley S. Powell
Senior Vice President and Chief Financial Officer
(206) 674-3412

Geoffrey Buscher
Director - Investor Relations
(206) 892-4510

DUBLIN--(BUSINESS WIRE)--The "Tanzania Energy Requirements Forecasted to 2050" report has been added to ResearchAndMarkets.com's offering.


The scope outlook for this report is from 2020 to 2050 integrating all end user energy carrier generation outputs into a coherent energy mix to meet the needs of an increasingly urbanised population and growing economy. The primary energy carriers are all analysed and forecasted. The economic effects of the Covid-19 Corona virus pandemic, particularly on energy production and consumption, are analysed extensively in the report.

Key Topics Covered:

  • Scope
  • Methodology
  • Key Findings
  • Introduction
  • Corona Virus Shock
  • World Economic Outlook
  • Sectoral Growth of Energy
  • 2020 Consumption of Energy
  • 2050 Consumption of Energy
  • Glossary and References

Companies Mentioned

  • TANESCO
  • Barefoot Power
  • d.light
  • Fosera
  • Greenlight Planet
  • Marathoner
  • One Degree Solar
  • Arti
  • Ensol
  • Global Cycle Solutions
  • Solar Grid
  • Sunny Money
  • Zara Solar
  • Tanzania Electric Supply Company
  • Zanzibar Electricity Corporation
  • Chloride Exide
  • ENSOL
  • Sahara
  • Kisangani Smith Group
  • Appropriate Rural Technology
  • Moto Poa
  • Ms Wind EA
  • Kititimo Singida
  • Power Pool East Africa
  • Sino-Tan Renewable Ltd
  • New Energy Group Ltd
  • Infranco
  • M/S Songas
  • Tanzania Renewable Energy Association
  • Kiwira Coal Mine
  • Mchuchuma Coal Mine
  • Katewaka Coal Mine
  • Geo-Wind Tanzania
  • Wind East Africa
  • Sino Tan Renewable Energy
  • Wind Energy Tanzania Ltd
  • Tanzania Geothermal Development Company

For more information about this report visit https://www.researchandmarkets.com/r/jqt1g9


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

DUBLIN--(BUSINESS WIRE)--The "Maritime Analytics Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Application (Optimal Route Mapping, Predictive and Prescriptive Analytics, Pricing Insights, Vessel Safety and Security, and Others) and End User (Commercial and Military); and Geography" report has been added to ResearchAndMarkets.com's offering.


According to this report the global maritime analytics market was valued at US$ 894.28million in 2019 and is expected to reach US $1,833.50 million by 2027; it is estimated to grow at a CAGR of 10.0% during 2020-2027. The report highlights key factors driving the market growth, and prominent players and their developments in the market.

In today's digital age, the competition in various industries including maritime industry is very high and companies are continuously investing in solutions that could help them enhance operational productivity while reducing the overall costs. Hence, the demand for advanced solutions such as maritime data analytics has been growing at an impressive pace among commercial shippers and other end users. In shipping industry, big data issued to manage sensors on the ship and to perform predictive analysis to avoid any delays and to increase efficiency.

Enhanced decision making owing to insights obtained by big data is actively being implemented to avoid and predict additional cost and it can be utilized across the ship's lifecycle. Hamburg Port (Germany), Port of Cartagena (Columbia), Port of Rotterdam (The Netherlands), and several ports in South East Asia are actively using big data analytics solutions for their port and terminal operations. In June 2020, Windward, a maritime analytics company announced a new partnership with BP Shipping. Under this partnership, the company will deliver behavioral analytics data and other related insights to help BP Shipping in digitizing its trade practices related to sanctions compliance.

Predictive analytics solutions have the capability to transform the shipping industry by enhancing overall shipping operations, improving ship's safety, and ensuring environment protection. Additionally, the high level of customizability offered by these solutions depending on the specific needs of any port or shipping company is expected to fuel the demand during the forecast period. With rising globalization, the demand for goods transportation will grow substantially in the coming years. Hence, the demand for advanced data processing techniques and predictive analytics will also rise among maritime companies to maximize time efficiency and cost savings. These factors are driving the demand for maritime analytics globally.

COVID-19 Impact on Maritime Analytics Market

According to the World Health Organization (WHO), the US, Turkey, Brazil, Spain, Germany, Italy, France, the UK, Russia, Iran, India, and China are some of the worst affected countries due to the COVID-19 outbreak. The COVID-19 pandemic is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in 2020,which is likely to continue in 2021 as well. The outbreak has created significant disruptions in various industries, such as logistics, marine, and e-commerce. Logistics and transportation is an essential element for the smooth operations of any industry including FMCG, healthcare, retail, and automotive, among others, where shipping contributes a substantial share in the global logistics and transportation sector. The interruption in supply chains and logistics operations due to COVID-19 outbreak is affecting the growth of key shipping industry players operating globally.

Reasons to Buy

  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global maritime analytics market
  • Highlights key business priorities in order to assist companies to realign their business strategies
  • The key findings and recommendations highlight crucial progressive industry trends in the global maritime analytics market, thereby allowing players across the value chain to develop effective long-term strategies
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution

Market Dynamics

Drivers

  • Rising Trend of Digitalization in Global Shipping Industry
  • Increasing Demand for Enhanced Maritime Operations Through Data Analytics

Restraints

  • Concerns Related to Cybersecurity and Lack of Skilled Workforce

Opportunities

  • Developing Regions to Drive Future Growth

Future Trends

  • Advanced Technologies to Transform Maritime Industry

Company Profiles

  • ABB Ltd.
  • Exact Earth Ltd.
  • Itransition
  • Planet Labs Inc.
  • ShipNet
  • SparkCognition
  • Spire Global
  • SINAY SAS
  • Windward Ltd
  • Prisma Electronics SA

For more information about this report visit https://www.researchandmarkets.com/r/nbagko


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

DUBLIN--(BUSINESS WIRE)--The "Burundi Energy Requirements Forecasted to 2050" report has been added to ResearchAndMarkets.com's offering.


The scope outlook for this report is from 2020 to 2050 integrating all end user energy carrier generation outputs into a coherent energy mix to meet the needs of an increasingly urbanised population and growing economy. The primary energy carriers are all analysed and forecasted.

The economic effects of the Covid-19 Corona virus pandemic, particularly on energy production and consumption, are analysed extensively in the report.

Key Topics Covered:

  • Scope
  • Methodology
  • Key Findings
  • Introduction
  • Corona Virus Shock
  • World Economic Outlook
  • Sectoral Growth of Energy
  • 2020 Consumption of Energy
  • 2050 Consumption of Energy
  • Glossary and References

For more information about this report visit https://www.researchandmarkets.com/r/i5gnk2


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

Energy Transfer and Recurrent Energy Demonstrate the Benefits of a Symbiotic Relationship Between Traditional Energy and Renewable Energy

GUELPH, Ontario & DALLAS--(BUSINESS WIRE)--Canadian Solar Inc. (“Canadian Solar”) (NASDAQ: CSIQ) today announced its wholly-owned subsidiary, Recurrent Energy, LLC (“Recurrent Energy”), is currently constructing the 28 MWac Maplewood 2 Solar Project for Energy Transfer (NYSE: ET), a Dallas-based Fortune 100 midstream energy company. Maplewood 2 is located in Pecos County in the Permian Basin of West Texas, and will deliver low-cost, clean power to Energy Transfer under a 15-year Power Purchase Agreement (PPA). This PPA marks Energy Transfer’s first-ever dedicated solar contract.


The Maplewood 2 Solar Project is our third project to be constructed in Texas, bringing our total to more than 385 MWac of low-cost clean solar projects built in the Lone Star State. We are pleased that this project is now under construction, as it brings us that much closer to delivering low-cost, clean power to Energy Transfer,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.

The Maplewood 2 Solar Project demonstrates our commitment to reducing our environmental footprint by integrating alternative energy sources when economically beneficial,” said Mackie McCrea, President and Chief Commercial Officer, Energy Transfer. “While we currently use a diversified mix of energy sources along with emission-reducing technologies to operate our assets, this project marks a new milestone for us as our first dedicated solar-powered facility.”

Texas has led the production of energy since the discovery of the Spindletop oilfield in 1901. The state’s geography and natural resources, skilled labor force, and internal competitive power market, the Electric Reliability Council of Texas (ERCOT), give it an energy advantage. According to a report by Wood Mackenzie and the Solar Energy Industries Association, Texas ranks 4th in the U.S. for solar installed, with enough solar capacity to power more than 640,000 homes, and is poised to become a nationwide leader with more than 4 GW of capacity expected to be installed over the next five years.

Dr. Qu added, “Our partnership with Energy Transfer on the Maplewood 2 Solar Project is emblematic of the diverse Texas energy landscape and represents the market-oriented business climate the state is so well known for. It’s tremendous to be working with Energy Transfer to provide an economical, clean energy solution that will support their U.S. operations.”

The Maplewood 2 Solar Project is estimated to be in operation in Q1 2021.

About Energy Transfer

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins. ET is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, NGL and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. ET, through its ownership of Energy Transfer Operating, L.P., also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 46.1 million common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com

Energy Transfer Forward-Looking Statement

This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in Energy Transfer LP’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. In addition to the risks and uncertainties previously disclosed, ET has also been, or may in the future be, impacted by new or heightened risks related to the COVID-19 pandemic and the recent decline in commodity prices, and we cannot predict the length and ultimate impact of those risks. ET undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

About Recurrent Energy

Recurrent Energy is a leading utility-scale solar and storage project developer, delivering competitive, clean electricity to large energy buyers. Based in the U.S., Recurrent Energy is a wholly owned subsidiary of Canadian Solar Inc. and functions as Canadian Solar’s North American project development arm. Recurrent Energy has approximately 5 GW of solar and storage projects in development in the U.S. Additional details are available at www.recurrentenergy.com.

About Canadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar power companies. It is a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions and has a geographically diversified pipeline of utility-scale solar power projects in various stages of development. Over the past 19 years, Canadian Solar has successfully delivered over 43 GW of premium-quality, solar photovoltaic modules to customers in over 150 countries. Canadian Solar is one of the most bankable companies in the solar industry, having been publicly listed on NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Canadian Solar’s Safe Harbor/Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business and economic conditions and the state of the solar industry; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets such as Japan, the U.S., India and China; changes in customer order patterns; changes in product mix; capacity utilization; level of competition; pricing pressure and declines in average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success in technological innovations and delivery of products with the features customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20-F filed on April 26, 2018. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.


Contacts

Canadian Solar Inc. Contacts
Isabel Zhang
Investor Relations
Canadian Solar Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.

David Pasquale
Global IR Partners
Tel: +1-914-337-8801
This email address is being protected from spambots. You need JavaScript enabled to view it.

Recurrent Energy Media Relations Contact
McCall Johnson
Director, External Affairs
Recurrent Energy
This email address is being protected from spambots. You need JavaScript enabled to view it.

Energy Transfer Investor Relations Contacts
Bill Baerg
VP, Investor Relations
Energy Transfer
Tel: 214-981-0795
This email address is being protected from spambots. You need JavaScript enabled to view it.

Brent Ratliff
VP, Investor Relations
Energy Transfer
Tel: 214-981-0795
This email address is being protected from spambots. You need JavaScript enabled to view it.

Lyndsay Hannah
Director, Investor Relations
Energy Transfer
Tel: 214-981-0795
This email address is being protected from spambots. You need JavaScript enabled to view it.

Energy Transfer Media Relations Contacts
Vicki Granado
VP, PR & Communications
Energy Transfer
Tel: 214-840-5820
This email address is being protected from spambots. You need JavaScript enabled to view it.

Amanda Gorgueiro
PR Specialist
Energy Transfer
Tel: 214-840-5820
This email address is being protected from spambots. You need JavaScript enabled to view it.

DUBLIN--(BUSINESS WIRE)--The "Angolan Energy Requirements Forecasted to 2050" report has been added to ResearchAndMarkets.com's offering.


The scope outlook for this report is from 2020 to 2050 integrating all end user energy carrier generation outputs into a coherent energy mix to meet the needs of an increasingly urbanised population and growing economy. The primary energy carriers are all analysed and forecasted.The economic effects of the Covid-19 Corona virus pandemic, particularly on energy production and consumption, are analysed extensively in the report.

Key Topics Covered:

  • Scope
  • Methodology
  • Key Findings
  • Introduction
  • Corona Virus Shock
  • World Economic Outlook
  • Sectoral Growth of Energy
  • 2020 Consumption of Energy
  • 2050 Consumption of Energy
  • Glossary and References

Companies Mentioned

  • Chevron
  • Cabinda Gulf Oil Company
  • Sonangol
  • Fina Petroleos de Angola
  • Elf Aquitaine
  • Texaco
  • ExxonMobil
  • Esso
  • Xikomba Offshore Oilfield
  • Sonaref Refinery
  • Sinopec
  • Capanda Hydroelectricity
  • Lomaum Hydroelectricity
  • Motala Hydroelectricity
  • Ruacana Hydroelectricity
  • Kapanda Hydroelectricity

For more information about this report visit https://www.researchandmarkets.com/r/mxht8n


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

EDC shines the spotlight on Tantalus as one of five cleantech companies that have developed innovative solutions for a more sustainable future

BURNABY, B.C.--(BUSINESS WIRE)--#cleantech--Smart grid technology leader Tantalus Systems Corp. announced today that it has been named as an Export Development Canada (EDC) Cleantech Export Star. Each year, EDC highlights the achievements of leading cleantech companies during their Cleantech Export Week conference. Tantalus was recognized as a proven leader whose technologies and business strategies have succeeded in getting their products beyond Canada’s borders - as one of five clean technology companies that stands out as making a positive impact across North America and the Caribbean Basin.


“Each year, it brings me great pride and gratitude to announce Canada’s Export Stars and Ones to Watch, but this year is particularly impactful. Not only have these Canadian companies proven to be leaders in the fight against climate change, but they’ve also exemplified resiliency and perseverance amid the current economic crisis,” said Dan Mancuso, SVP Financing & Investments, EDC. “Our hope is that these success stories along with the insights and opportunities offered during Cleantech Export Week will both inspire companies and support continued growth within the sector.”

“Our mission-critical technology solutions improve the environment by enabling utilities to reduce their carbon footprint by being more efficient and preparing their distribution grids for the adoption of distributed energy resources in the form of solar panels, electric vehicles and distributed storage,” said Peter Londa, President & CEO of Tantalus Systems. “EDC has been a long-standing partner of Tantalus, enabling us to access the necessary working capital to invest in the growth of our company by recruiting and retaining talented team members and accelerating our R&D initiatives as we strive to help utilities and the communities they serve.”

Read more about how Tantalus has created an environmental solution for the global community.

About Tantalus

Over the past three decades, Tantalus has consistently and creatively developed technology that enhances the safety, reliability and efficiency of public power and electric cooperative utilities across North America and the Caribbean Basin. Tantalus provides mission-critical smart grid solutions that empower utilities to access granular data across the distribution grid to support the multi-directional flow of power from distributed energy resources, proactively engage with their customers and members, improve the resiliency of their grids to mitigate the impact of power outages and realize cost savings by streamlining system operations. Its comprehensive suite of smart grid solutions includes advanced metering infrastructure (AMI), demand-management, power quality data analytics, distribution automation and street lighting control systems. This broad portfolio of solutions is purpose-built to support smart community initiatives essential to both the near-term and long-term success of the utilities Tantalus supports and the communities they serve.


Contacts

Jacquie Hudson
Marketing Communications Manager
Tantalus Systems Inc.
613-552-4244 | This email address is being protected from spambots. You need JavaScript enabled to view it.
W: www.tantalus.com
Twitter: @TantalusCorp

DUBLIN--(BUSINESS WIRE)--The "Mozambique Energy Requirements Forecasted to 2050" report has been added to ResearchAndMarkets.com's offering.


The scope outlook for this report is from 2020 to 2050 integrating all end user energy carrier generation outputs into a coherent energy mix to meet the needs of an increasingly urbanised population and growing economy. The primary energy carriers are all analysed and forecasted.

The economic effects of the Covid-19 pandemic, particularly on energy production and consumption, are analysed extensively in the report.

Key Topics Covered:

  • Scope
  • Methodology
  • Key Findings
  • Introduction
  • Corona Virus Shock
  • World Economic Outlook
  • Sectoral Growth of Energy
  • 2020 Consumption of Energy
  • 2050 Consumption of Energy
  • Glossary and References

For more information about this report visit https://www.researchandmarkets.com/r/lc5fcg


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

Offshore Source Logo

Offshore Source keeps you updated with relevant information concerning the Offshore Energy Sector.

Any views or opinions represented on this website belong solely to the author and do not represent those of the people, institutions or organizations that Offshore Source or collaborators may or may not have been associated with in a professional or personal capacity, unless explicitly stated.

Corporate Offices

Technology Systems Corporation
8502 SW Kansas Ave
Stuart, FL 34997

info@tscpublishing.com