OREGE has released its annual results for the year 2019 and also provided an update on its activities. The company stated that the end of 2019 and first half of 2020 was disrupted by different events.
In France the social unrest at the end of 2019 and then the global health crisis associated with COVID-19 has inflicted the disruption in execution of a number of the projects. The shutdown resulted in interruption of 3 major projects which resulted in a time lag in accord with the associated revenues totaling around € 1.3 million.
The two SLG solutions sold in 2019 could not be delivered according to the schedule at the end of December as transport was disrupted because of the roadblocks by the yellow jackets protestors. So becausye of delay the solutions were delivered in January 2020. However, they have not yet been implemented in Itochu (Japan) due to the closure of the borders.
The project Orlando (USA) was implemented and executed in second half of 2019 with formalization of final acceptance stages carried out in Q1 2020. The company had to keep stages frozen that were scheduled for Q1 2020 and it intends to finalize from mid-June.
The company completed first phase of multi-phase project in Aqualia (Spain) in December 2019 but this project has been suspended since March 2020. Orege and Aqualia have been led to re-negotiate the commercial terms of the project amid the Covid-19 crisis. Orege stated that its business operations in the first half of 2020 is significantly struck by the COVID-19 pandemic. All the 15 assigned projects in execution were frozen either in February or in March.
However, Orege has restarted the work on 4 projects in June and expects the recommencement of most of the projects this summer after reopening of borders, so the teams could air travel and clients could authorize the teams to let them resume the project execution at their site areas.
The 15 contracts of Orege under execution constitute approximately € 5 million of turnover, while approximately € 3 million could be recorded and can be added to the source of cash in during the year 2020. Company reported the turnover via the 2019 projects as € 935k compared to €2.260 million for previous year.
In financing and cash flow, the company had € 237k of cash and cash equivalents at 31 December 2019 as compared to € 321k at 31 December 2018. Financial debt totaled € 17.849 million which also include the current account advances of €15.767 million of shareholder while in 2018 financial debt was €44.975 million, out of that €42.443 million as current account advances of shareholder. 2019 Net equity was € -12.186 million as compared to €-40 670 in previous year.
The company sees a development trajectory in its outlook supported by the growing recognition of its SLG® solutions with its the efficiency and effectiveness. The company also anticipates the acceleration of its commercial deployment in high-potential regional markets
The company has recently get into a collaboration with the Spanish group Aqualia on the Toledo WWTP (Spain) in a project to the implement the SLG solutions for an innovative triple application.
The company signed a strategic worldwide commercial partnership with Scandinavian group Alfa Laval on June 12 2020.