Greenlane reports increased revenue, sales order backlog

Canada-based Greenlane Renewables Inc., a supplier of biogas upgrading systems, released interim financial results for the first half of 2020 on Aug. 25, reporting significant increases in revenue and sales order backlog.

“We successfully grew our revenue this quarter by 45 percent on a sequential basis while facing some tough marketplace conditions as a result of the COVID19 backdrop,” said Brad Douville, president and CEO of Greenlane. “We also achieved a third consecutive quarter of rapid growth of our sales order backlog adding $21 million from the recent and significant contract wins for dairy farm projects in California. Our focus remains on a strong second half of 2020. This trend continues so far in the third quarter highlighted by a recent contract win in Brazil, and the launch of our joint venture with SWEN Impact Fund for Transition to accelerate deployment of Greenlane’s biogas upgrading systems and solutions in Europe.”

Documents filed with Canadian Securities Administrators, a government organization similar to the U.S. Securities and Exchange Commission, indicate the business acquired by Greenlane Renewables in June 2019 has been installing biogas upgrading systems since the 1990s and has installed more than 100 biogas upgrading systems in 18 countries.

During the second quarter of this year, Greenlane Renewables signed $23 million in new contracts, including a $20.6 million contract to supply its pressure swing absorption (PSA) biogas upgrading system at a dairy farm cluster in California, and a $.24 million contract for a commercial-scale pipeline injection renewable natural gas (RNG) project in Brazil.

In its financial documents, Greenlane Renewables said the biogas upgrading market is expected to continue to grow. The company said it currently has visibility to more than 100 new projects, proposed or proceeding, and has a sales pipeline with an estimated value of over $694 million in biogas upgrading equipment sales for competitive bid. Greenlane Renewables also said it had a sales order backlog of $41.9 million.

The company reported revenue of $4.2 million for the second quarter, up 45 percent when compared to the previous quarter. The sales order backlog of $41.9 million is up 159 percent when compared to the sales order backlog reported as of the close of 2019. The company reported a second quarter gross profit of $1.1 million, or 26 percent of revenue. Net loss was $900,000, with adjusted EBITDA loss of $500,000.