The Energy Report
UGE International is solidifying its position as a leader in the commercial solar market.
With the price of solar energy continuing to drop, UGE International Ltd. (UGE:TSX.V; UGEIF:OTC), with offices in New York, Toronto and the Philippines, has risen to the forefront of commercial and industrial solar providers. The company designs and installs solar power for commercial customers and then sells them the power; the client does not put up any up-front capital.
Among UGE’s recent contracts are ones to install New York City’s first community solar project in Brooklyn, develop plans for microgrid systems in New York City, construct three solar projects for Philippine Spring Water Resources, and design and build a solar carport at The Sheridan College Institute of Technology and Advanced Learning in Ontario.
“In the areas where we’ve traditionally operated, like the eastern U.S. or Ontario, the average client is paying around 14 cents per kilowatt hour, but we can sell you energy for 10 cents per kilowatt hour, and that cost is continuing to drop as the technology improves,” UGE’s CEO Nick Blitterswyk told Equedia Investment Research.
In early April the company announced its acquisition of Carmanah Solar Power Corp. (CSPC), a Toronto-based provider of on-grid solar services in Canada. “CSPC has a long, proud history, and is a very complementary group that we are excited to welcome to the UGE team,” stated Blitterswyk. “Through this transaction we grow our market share, consolidate a competitor, and gain a strategic relationship with OYA, further boosting our expectations for 2017 and beyond.”
The company announced that revenues for the fourth quarter of 2016 were approximately $3.4 million, its highest ever. And at Dec. 31, 2016, UGE’s order backlog was $34.9 million.
UGE International was featured as one of Canaccord Genuity’s Sustainability picks earlier this year. Analyst Raveel Afzaal commented that “UGE prereleased Q4/16 revenues of US$3.5M compared to cumulative revenues of US$2.5M over prior four quarters as it digested the acquisition of Endura (an EPC [Engineering, Procurement & Construction] firm). With integration complete, UGE is forecasting sharp revenue growth in 2017 based on its 12 to 18 months contracted backlog of US$35M.”
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