- Westport Fuel Systems (WPRT) has revealed the company’s results from a poor June quarter
- Quarterly revenue fell 56 per cent to approximately $48.15 million, compared to last year’s corresponding period
- However, net profit was slightly up on last year second quarter, moving from a loss of $3.47 million last year to a profit of $4.01 million this year
- The increased profits were attributed to a $10.29 million insurance payout related to faultily pressure release valves in the first quarter
- Westport Fuel Systems (WPRT) is down 0.9 per cent to $2.01 per share
Westport Fuel Systems (WPRT) has revealed its financial and operational results from its June quarter.
The Vancouver-based clean fuel provider had a difficult second quarter, as the global energy industry languished under the impact of coronavirus.
The company posted a revenue drop of 56 per cent, falling C$62.07 million against last year’s corresponding figures to a low of $48.15 million.
This was primarily down to lower sales throughout the quarter as the company closed plants, due to greatly reduced customer demands. The company’s European plant was closed in mid-march and wasn’t reopened until late April.
Westport’s other major business segment, the light-duty OEM business, is largely dependent on aftermarket purchases and therefore declined significantly throughout the second quarter. However, the company expects to see a bounce back the second half of the year, as consumers return to the market.
Meanwhile, its heavy-duty business has not seen significant movements, as the freight businesses have largely been unaffected by the virus and shutdowns and are deemed essential services.
The company’s net income for the year was $4.01 million, up from a loss of $3.47 million in 2019’s June quarter.
Westport attributed its improved profits to a $10.29 million insurance recovery payment, received for a $13.37 million field service program during the first quarter, which replaced pressure release valves on insured rigs.
Net loss for the six-month period is more indicative of where the company is truly at, sitting at $16.45 million compared with $7.49 million over the first half of 2019.
CEO of Westport Fuel David Johnson said that while the impact of COVID-19 on the second quarter results was significant, it is now in full recovery mode.
“With the support of governments and our financial partners we are ready and able to support the green recovery with our clean transportation solutions.
‘Despite the uncertainty that remains in markets around the world, demand for Westport HPDI 2.0 and our Light-Duty OEM and aftermarket products is recovering,” he said.
Westport Fuel Systems (WPRT) is down 0.9 per cent and is trading at $2.01 per share at 10:20 am EDT.