Bullish execs tout BluMetric's 'resilience' despite Q3 revenue drop

BluMetric pipe

A surge in revenue from the government market thanks in large part to a new contract in Canada’s North propelled local cleantech firm BluMetric Environmental to a better-than-expected third quarter, the company said.

The Ottawa company reported revenues of $6.9 million for the three-month period ending June 30, down slightly from the $7 million it posted a year ago. But given the “uncertainty and disruption caused by the COVID-19 pandemic,” BluMetric said the results were encouraging.

“The theme for our past quarter is one of resilience,” CEO Scott MacFabe said in a news release. 

“Our client mix provided resilience through market diversification, and the resilience of our team of professionals has allowed us to continue to deliver needed solutions efficiently and safely, as has been reflected in our third-quarter results. As conditions continue to open up, we are excited about ongoing opportunities to leverage that resilience and our strong reputation in key markets.”

BluMetric posted net earnings of $673,000 for the quarter, up $663,000 from the same period last year. 

Revenues from the company’s commercial and industrial clients fell by about $400,000 compared with a year ago due largely to pandemic-related shutdowns and project delays. But government revenues jumped more than half a million dollars year-over-year thanks to a five-month, $1.6-million deal the company signed in late June to provide water remediation services to a mine in the Northwest Territories.

Revenues from military and mining customers held steady from a year ago, the company added, noting projects in those markets were “considered essential and continued largely uninterrupted.”

Although the overall economy remains sluggish, BluMetric said it expects its business to continue gaining momentum as travel restrictions start to ease and it resumes key projects.  “Government spending under existing standing offers, previously under-utilized, is now picking up,” it said, adding project demand “remains strong,” particularly in the North.

The company's shares were unchanged at 15 cents Friday on the TSX Venture Exchange.