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Anaergia Reports Third Quarter 2023 Financial Results

November 14, 2023

2 Min Read
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Anaergia

BURLINGTON, Ontario -- Anaergia Inc. (“Anaergia” or the “Company”) (TSX: ANRG) today announced its financial results for the three- and nine-month periods ended September 30, 2023 (“Q3 2023”), and the related management’s discussion and analysis (“MD&A”) for the period. Certain highlights from these financial results and from the MD&A follow. All financial results are reported in Canadian dollars unless otherwise stated.

Notable Developments

  • Anaergia announced, on September 28, 2023, that its Rhode Island Bioenergy Facility (“RIBF”) closed a US$20 million term loan with East West Bank, a California corporation, to finance the remaining construction and commissioning of the RIBF BOO project and working capital.

  • Anaergia announced, on September 13, 2023, that it had engaged Piper Sandler & Co. to assist the Company and its advisors with the Company’s previously announced strategic review. This process is continuing. As previously disclosed, the Company requires additional financing to fund its operations and continue to operate as a going concern. The Company cautions that there are no assurances that the evaluation of the potential options will result in the approval or completion of any specific transaction or outcome.

  • Anaergia announced, on August 17, 2023, that it had sold its equity interests in its subsidiary that owned the six Italian build-own-operate (“BOO”) assets and approximately $55 million in inter-company loans (as previously written off by the Company) to Arjun Infrastructure Partners (“AIP”). This sale was in exchange for the termination of obligations relating to approximately $145 million in loan obligations owing to AIP, including with respect to a lender option for AIP to require Anaergia to purchase outstanding loans relating to any BOO projects for which senior debt financing was not secured by a set time. As a result of the foregoing, Anaergia received de minimis cash consideration.

Financial Results for Q3 2023

Q3 2023 financial highlights:

  • Revenues decreased 25%, or $11.1 million, to $34.0 million compared to the same period in Fiscal 2022 (Q3 2022: $45.0 million). The decrease was mainly due to European Capital Sales projects coming to completion, some projects facing customer delays and delays in new project signings.

  • Net loss of $30.6 million decreased 616%, or $26.3 million, compared to the same period in Fiscal 2022 (Q3 2022: net loss of $4.3 million). The decrease was mainly driven by an impairment loss recorded for Fibracast, losses in equity accounted investees, and finance costs related to increased lending activity.

  • Adjusted EBITDA 1 declined 876%, or $10.2 million, to a loss of $11.3 million compared to the same period in Fiscal 2022 (Q3 2022: loss of $1.2 million). The decline was due to an increased loss from operations.

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