Pacific Green Successfully Executes Its Transition to Renewable Energy Recurring Income Model and Announces Its Annual Report for Year Ending March 31, 2022
August 10 2022 - 5:00PM
JCN Newswire
Pacific Green Technologies, Inc. (the "Company" or "Pacific
Green", (OTCQB:PGTK)) announces that it has successfully completed
its first milestone in the process of diversifying and regularizing
its income streams. Pacific Green is transitioning from a single
technology equipment provider in the marine sector to an
asset-driven "build-own-operate" renewable energy and battery
energy storage system ("BESS") development company, led by the
financial close in June 2022 of its first 99.98 MW project at
Richborough Energy Park, as part of Pacific Green's 1.1 GW pipeline
of BESS developments in the UK. In summary:
- Successfully executed transition to renewable energy company with
recurring income model from self-developed energy assets
- FY22 results impacted by COVID related slowdown to marine
business
- 99.98 MW Richborough Battery Energy Park asset in construction,
with projected commercial operations via the National Grid in June
2023
- Financial restatement reflects change in timing of milestone
recognition. No impact on cash flows.
As part of this transition, along with tighter fuel spreads and
COVID-19 pandemic logistical issues for the Company's clients and
suppliers in the marine sector, revenues have been reduced for the
year ending March 31, 2022 to $15.44 million (FY21 revenue: $52.62
million) with a net loss for the year of US$10.75 million (FY21 net
loss: US$1.81 million).
Within the stated losses includes a one-off, non-cash write-down of
combined goodwill and intangible assets, totaling US$7.06 million
against Chinese subsidiary Pacific Green Technologies (Shanghai)
Co. Ltd. (formally Shanghai Engin Digital Technology Co. Ltd.) and
Pacific Green Innoergy Technologies Ltd., acquired in 2019 and
2020, respectively.
The restatement of past financials noted in the Company's year end
filing reflects a change in the accounting treatment of the timing
of revenue and expense recognition only, with no impact to cash
flows, balances or the Company's ability to undertake business
development in the energy storage sector.
Over the past six months, the spread between high-sulphur and
low-sulphur fuel oils has rebounded to exceed US$200 per ton.
Pacific Green has witnessed a significant increase in new enquiries
for its emissions control systems, commonly known as "scrubbers",
leading to further sales of the Company's technology in the past
months.
The Company has built out its BESS division, recruiting a
world-class team of experts to create an industry leading platform
to deliver its 1.1 GW pipeline in the UK and is now looking to
expand the platform geographically.
Pacific Green has invested in its first 99.98 MW BESS project at
Richborough Energy Park in the UK, supported by the Company's 50%
project equity partner, Green Power Reserves Limited, senior debt
provided by Close Leasing Limited and energy optimization by Shell
Energy Europe Limited. The development, Richborough Energy Park
Limited, is currently in construction, with projected commercial
operations commencing in June 2023.
During this period, the Company has funded the deposit to secure
its second BESS development of 249 MW in the UK as part of the 1.1
GW pipeline.
About Pacific Green Technologies, Inc.
Pacific Green Technologies, Inc. is focused on addressing the
world's need for cleaner and more sustainable energy. The Company
offers Battery Energy Storage Systems and Concentrated Solar Power
energy solutions to compliment its marine environmental
technologies division. For more information, visit Pacific Green's
website: www.pacificgreentechnologies.com
Notice Regarding Forward-Looking Statements:
This news release contains "forward-looking statements," as that
term is defined in Section 27A of the United States Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Statements in this news release which are not purely historical are
forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Such forward-looking statements include, among other things, the
construction of the 99.98 MW BESS the Company is to develop in
Kent; and any potential business developments in the UK and future
interest in the Company's battery, solar and emissions control
technologies.
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, general economic and political conditions,
the continuation of the construction of the 99.98 MW BESS, the
sales of retrofit emissions control technologies and the ongoing
impact of the COVID-19 pandemic. These forward-looking statements
are made as of the date of this news release, and the Company
assumes no obligation to update the forward-looking statements, or
to update the reasons why actual results could differ from those
projected in the forward-looking statements. Although the Company
believes that the beliefs, plans, expectations and intentions
contained in this news release are reasonable, there can be no
assurance that such beliefs, plans, expectations or intentions will
prove to be accurate. Investors should consult all the information
set forth herein and should also refer to the risk factors
disclosure outlined in the Company's annual report on Form 10-K for
the most recent fiscal year, the Company's quarterly reports on
Form 10-Q and other periodic reports filed from time-to-time with
the Securities and Exchange Commission.
Contact:
Scott Poulter, Chairman & CEO
Pacific Green Technologies
T: +1 (302) 601-4659
SOURCE: Pacific Green Technologies, Inc.
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