Vancouver, Canada-based designer, manufacturer and supplier of advanced clean fuel systems and components Westport Fuel Systems Inc. (WPRT:NASDAQ) announced operating and financial results for its second quarter of 2021 ended June 30, 2021.
The company reported that in Q2/21 revenue increased by 135% to a record $84.7 million, compared to $36.0 million in Q2/20. The firm noted that sequential revenues were up 11% versus Q1/21, which it said is the result of "continued recovery of sales volumes in its independent aftermarket (IAM) and light-duty original equipment manufacturer (OEM) businesses as well as continued growth in its heavy-duty OEM business. "
Westport Fuel Systems stated the for Q2/21, it earned a net income of $17.2 million, or $0.11 per share, compared to a net income of $3.0 million, or $0.02 per share in Q2/20. The company mentioned that the jump in earnings in Q2/21 was primarily due to a combination of a gain from its acquisition of Stako, increased margins and income from its Cummins Westport Inc. JV (CWI), a forex gain of $2.3 million and an $8.9-million tax recovery tied to COVID-19 tax relief from the Italian government. The company stated additionally that in Q2/21 it achieved EBITDA of $13.9 million and adjusted EBITDA of $6.2 million.
Westport Fuel Systems noted that on May 30, 2021, it closed its $7.1-million acquisition of Stako sp. z.o.o (Stako) and realized a gain on the purchase in the amount of $5.9 million, which was recorded in Q2/21. The company stated that buying Stako further supports the energy transition to cleaner fuels.
The company also indicated that in the latest quarter it announced a collaboration to develop a highly efficient hydrogen internal combustion engine for heavy goods transportation with Tupy and AVL List GmbH.
Westport Fuel Systems mentioned that in June 2021, it successfully raised $115.1 million in gross proceeds from a public share offering. The firm advised that it intends to use those funds to expand and automate production capacity of its high-pressure direct injection (HPDI) products to meet growing client demand.
The company's CEO David M. Johnson commented, "The second quarter of 2021 was another record revenue quarter for Westport Fuel Systems. We saw a substantial recovery in our independent aftermarket and light-duty OEM businesses relative to the same period last year. . .The outlook for our business is strong, underpinned by strong regulatory tailwinds and continued growth of LNG infrastructure in Europe, with further growth and recognition of bio–LNG as a clean, affordable fuel. "
"Development work on our hydrogen HPDI solution is advancing. Hydrogen with HPDI is expected to offer game-changing advantages for OEMs and suppliers, allowing them to leverage existing supply chains and engine production capabilities, while reducing the concerns of supplying and recycling precious and rare earth metals, " Johnson added.
Westport Fuel Systems is a designer, manufacturer and supplier of advanced clean fuel systems and components for the global automotive industry. The company is based in Vancouver, B.C., and has operations in Asia, Europe, North America and South America that serve global transportation customers in over 70 countries. The firm notes on its company website that strong trends and changes in greenhouse gas (GHG) emission reduction regulations have created significant opportunities for gaseous-fuel product solutions powered by natural gas, propane, renewable natural gas and hydrogen, which only serves to align Westport's common goals with those of its business partners to create clean transportation solutions that meet existing and future emissions standards targeting GHG reduction.
Westport Fuel Systems began the day with a market cap of around $578.1 million with approximately 147.8 million shares outstanding and a short interest of about 1.7%. WPRT shares opened nearly 13% higher today at $4.41 (+$0.50, +12.79%) over yesterday's $3.91 closing price. The stock has traded today between $4.37 to $5.18 per share and closed at $5.02 (+$1.11, +28.39%).
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