In a news just released last week H2O Innovation Inc.‘s (TSXV: HEO | OTCQX: HEOFF) (‘H2O Innovation’) subsidiary, Utility Partners, was awarded a new 3 year operation and maintenance (‘O&M’) contract in Florida and a 1 year renewal of an existing contract in New York State. Equally as significant is that these contracts, with a total value of C$5.1m, bring the O&M backlog to C$84.9m. That’s a rather impressive sign of demand, especially relative to the size of H2O Innovation, which achieved C$133.6 million in FY 2020 revenue.
Utility Partners is US-based and specializes in the operation of water and wastewater plants operating more than 200 utilities in two Canadian provinces and twelve US states, for all of its municipal customers. H2O Innovation acquired Utility Partners in 2016 for C$22.5m. Over the years H2O Innovation has delivered more than 15 membrane filtration projects to Florida, but this is the very first O&M contract. Utility Partners services include operations, maintenance, and management of public works, water, wastewater, and utility billing systems. On December 1, 2020, Utility Partners will change name to H2O Innovation. Although the name of the operator will change, the organization and staff will remain the same.
VP of Operations Bill Douglass said:
“We are very proud to have been awarded this major contract in Florida. In addition to entering a new territory, we will also be able to take advantage of cross-selling opportunities and synergies with the projects carried out in this State, by H2O Innovation, over the past few years.”
H2O Innovation specializes in all types of water treatment with a focus on North America
And who is H2O Innovation Inc.? H2O Innovation designs and provides state-of-the-art, custom-built and integrated water treatment solutions based on membrane filtration technology. H2O Innovation provides multiple water solutions in the areas of drinking water, wastewater, water reuse and recycling, desalination, and water solutions for the oil & gas industry.
H2O Innovation’s financials and forecast financials
As we all know water, food and air are our three most valuable commodities. Water in particular is in short supply in many countries and regions around the world. This means H2O Innovation has plenty of runway for potential growth ahead.
The world has an ever growing demand for clean water
The company’s just released results for fiscal 2020 (June 30 year-end) showed significant revenue growth, with “top-line revenue of $133.6 million was up more than $15 million from $118 million the previous fiscal year.” H2O Innovation offers cleantech and technology driven investors exposure to the growing water treatment sector.