The Fluence Corporation Ltd (ASX: FLC) share price soared 20% higher today after announcing a positive operating cash flow for the quarter ended June (Q2 2020).
The company's mission is to provide breakthrough water-treatment technologies. It does this by developing water, wastewater and reuse solutions that are efficient and unique.
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Cash flow update
The company's positive cash flow was in line with its previous guidance which helped boost the Fluence share price today. Furthermore, Fluence's cash balance at the end of Q2 was approximately US$20 million. This was up from US$16.9 million at the end of Q1 2020.
When commenting about the update, Managing Director and CEO, Henry Charrabe said: "Streamlining our operations and focusing on timely collections from customers enabled us to turn our operating cash flow positive. Despite global challenges and the economic slowdown, the company is now in a stronger cash position…"
A further update about its financial and operating performance will be provided at the end of this month.
About Fluence Corporation
With headquarters in New York and a global staff consisting of 300 water specialists, Fluence Corporation is a leader in the decentralised water, wastewater and reuse treatment markets. The group was created in 2017 after a series of mergers and acquisitions. It now has an international presence in over 70 countries. This includes in North and South America, the Middle East, Europe and China.
As per an announcement on 19 June, the company's key, Ivory Coast Project has been impacted by administrative delays resulting from the coronavirus pandemic. Positively, however, Fluence expects the delay to be resolved fairly quickly.
Henry Charrabe said in the June update, "This water treatment plant is a key infrastructure project for the Ivory Coast Government, and all parties are working hard so that the people in Abidjan will be able to access clean drinking water…"
Fluence also announced its earnings before interest, tax, depreciation and amortisation (EBITDA) turned positive in Q1 2020 and is expected to remain positive for FY20.
The Fluence share price is currently trading at 24 cents with a market cap of approximately $146.84 million. The group's share price has, however, fallen more than 55% in the past 12 months.
