The SciDev Ltd (ASX: SDV) share price is having a woeful morning on the ASX following a company announcement.

At the time of writing, the chemical engineering company's shares are down a sizeable 29%, trading at a multi-year low of 28 cents. In comparison, the All Ordinaries Index (ASX: XAO) is tracking 0.79% higher at 7,703 points.

What did the ASX materials share announce?

Investors are selling off SciDev shares following an unexpected announcement regarding its most senior leader. SciDev advised that its CEO and managing director Lewis Utting has tendered his resignation due to personal reasons.

SciDev commercial director of water services Sean Halpin has been appointed to the top job in the interim.

SciDev chair Vaughan Busby said:

The Board thanks Lewis for his leadership, commitment and hard work transforming and growing the company from a start up to where it is today.

We understand and respect Lewis' decision to resign so he can focus on family matters. Over the next few months, Lewis will be available on a limited basis to assist with the transition.

While the sudden notice has rattled shareholders, SciDev said that it would begin its search for a new permanent CEO.

About the SciDev share price

Adding to today's losses, the SciDev share price has fallen almost 70% over the last 12 months.

Since reaching a 52-week high of 97.5 cents in mid-2021, the ASX materials shares have been on a downward trend.

The company commands a market capitalisation of roughly $52.5 million based on today's price.

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The SciDev Ltd (ASX: SDV) share price came out of a trading halt today following the company's successful placement.

While SciDev is pleased with the latest capital raising efforts, its shares have plummeted 9.03% to 65.5 cents.

Let's take a closer look at the details regarding the chemical engineering company's latest announcement.

Why is SciDev shares in negative territory?

A major catalyst for SciDev shares sinking could be investor concerns about the impending dilution of shares.

According to its release, SciDev advised it has received binding commitments from an array of institutions to raise $18 million. The strongly-supported placement primarily came from local and international institutional investors.

The placement will see around 27.7 million new ordinary shares created at an issue price of 65 cents apiece. SciDev will use its existing placement capacity under listing rule 7.1 (15.3 million shares) and 7.1A (12.4 million shares). This allows up to 15% of its shares to be issued without shareholder approval. The new shares will rank equally with SciDev's existing ordinary shares.

SciDev also announced a share purchase plan (SSP) to raise a further $2 million from eligible shareholders. The issue price was listed as the same offered in the placement.

The proceeds from both the placement and SPP will be used to deliver a number of strategic objectives, that include:

• Consolidation of SciDev's Australian production facilities, including an upgrade of laboratory capability and expansion of our manufacturing capability;
• Funding an upcoming acquisition payment for SciDev Water Services (Haldon); and
• Funding new green chemistry initiatives to displace oil-based chemistries in the global $11 billion oil and gas market.

Management commentary

SciDev managing director and CEO Lewis Utting commented:

The Placement will allow us to accelerate the growth opportunities across our business, specifically in the large water treatment vertical. The funds will support the expansion of our manufacturing capabilities in Australia, securing our supply chain, improving our margins, and allowing our highly skilled team to continue to develop new technologies to help our clients solve their pressing operational and environmental issues.

About the SciDev share price 

Over the past 12 months, SciDev shares have dropped by more than 7% and are down almost 20% year-to-date. The company's shares recently reached a 52-week high of $1.07 in August before being pushed lower.

On valuation grounds, SciDev commands a market capitalisation of roughly $104.3 million with approximately 159.26 million shares on issue.

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The SciDev Ltd (ASX: SDV) share price is in the green in late-afternoon trade following an announced contract award.

At the time of writing, the chemical engineering company's shares are swapping hands for 95 cents, up 3.28%.

What's moving the SciDev share price higher?

SciDev shares are pushing higher after investors appear upbeat about the company's latest news.

According to its release, SciDev firstly advised that its proposed acquisition of Haldon Industries is on track. Completion of the takeover is expected to occur before the end of the current quarter.

In addition, the company noted that Haldon has secured a contract with Sydney's $2.6 billion Gateway Road project.

Founded in 2016, Haldon is an Australian-based environmental engineering company specialising in water and waste management. The company has a strong presence in the Polyfluoroalkyl (PFAS) market in Australia through its mobile treatment plants.

Under the deal, Haldon will design, construct, and commission a Sequencing Batch Reactor (SBR) Leachate Treatment Plant (LTP) for the Gateway Road project. The New South Wales Governments' delivery partner, John Holland-Seymour Whyte Joint Venture will oversee the works.

Once completed, the Sydney Gateway Road project will provide a high-capacity link across the city's motorway network. The airport precinct, Port Botany and surrounding roads will be connected to the newly opened St Peters Interchange.

Management commentary

SciDev managing director and CEO, Lewis Utting touched the contract win, saying:

Through the acquisition of Haldon, we are looking forward to supporting the Sydney Gateway Project – the contract extends our presence on major infrastructure projects in the Australian market and demonstrates the calibre of project that the SciDev and Haldon teams can secure.

Mr Utting went on to speak about the company's performance, adding:

The integration of the Haldon business is progressing in line with expectations, completion is scheduled to occur in Q4FY21. Haldon's way of doing business to solve client water treatment problems is highly aligned with SciDev's bespoke approach and culture, consequently providing a seamless path for the integration process.

The SciDev share price has gained over 40% in the past year and is roughly 17% higher on year-to-date performance.

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SciDev Ltd (ASX: SDV) shares are flying higher after the company released an important announcement earlier today. At the time of writing, the SciDev share price is trading 10.64% higher at 78 cents after hitting an intraday high of 80 cents in earlier trade.

 Here's why investors are jumping to buy shares in SciDev today.

SciDev share price boosted on acquisition news

The SciDev share price is responding favourably after the company announced it is set to acquire the business of Haldon Industries Pty Ltd.

According to the announcement, the acquisition will have a maximum consideration of $16.9 million. SciDev will issue shares to Haldon principals at 80 cents per share. In addition, a cash payment of $1.7 million will be processed on completion.

Haldon is an Australian-based environmental engineering company focused on the water and organic pollutant sector. The company has a strong presence in the Polyfluoroalkyl (PFAS) market in Australia through its mobile treatment plants.

SciDev noted that the acquisition of Haldon will provide the company with greater presence and scale in water infrastructure and wastewater verticals. SciDev's management highlighted that the acquisition will accelerate the company's plans to enter the global market.

What is the outlook for SciDev?

SciDev is a leader in the development and application of solids to liquid separation. The company combines technology and chemistry to solve operational and environmental issues in the water, oil, gas and construction markets.

In further news driving the SciDev share price today, the company also released an investor presentation to supplement its acquisition announcement. The company noted that the acquisition will deliver various strategic opportunities.

Firstly, SciDev will have access to the growing PFAS market in Australia with the ability to deliver a full treatment solution. In addition, the company expects to leverage its engineering and technology to drive further business development opportunities.

SciDev also highlighted that the acquisition will help it to diversify revenue streams whilst also providing it with a larger talent pool. The company also looks to expand its supply chain and end commodity exposure with the ability to provide direct chemical sales to Haldon customers.

SciDev made headlines earlier this month after it announced a partnership with Fortescue Metals Group Limited (ASX: FMG).

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The SciDev Ltd (ASX: SDV) share price will be one to watch today. The chemical engineering company announced a partnership with Fortescue Metals Group Limited (ASX: FMG).

Yesterday, the share price closed up 0.7% to finish at 68 cents. In comparison, the S&P/ASX All Ordinaries Index finished 0.4% higher.

Let's take a closer look at what's in the new deal.

The SciDev/Fortescue deal

In a statement to the ASX, SciDev announced it would "participate in a commercial trial" with Fortescue Metals. The trial will last one week and be conducted at the Fortescue Solomon Hub in the Pilbara region, Western Australia.

SciDev won the contract through a competitive tender process. Fortescue will pay the company $60,000 for its time.

Fortescue will be trialling SciDev's MaxiFloat technology. According to SciDev's website, MaxiFloat is a range of products intended for the treatment of wastewater in the mining, and oil and gas industries.

Commenting on the deal, SciDev Managing Director and CEO, Lewis Utting said:

The agreement with Fortescue further extends the presence of SciDev chemistry and services across major mining projects in Australia. With water being a premium commodity in the Pilbara, SciDev's technology can add real benefit to our customers as well as reduce their environmental footprint. The continued growth of SciDev and our ability to work with and service major mining companies such as Fortescue highlights the caliber of the SciDev team in executing the technical and commercial evaluations with our customers.

What is mining wastewater and why does it need to be treated?

According to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), mining is very water-intensive. Some the ways water is used in the industry include:

• transportation of ore and waste in slurries
• separation of materials with chemical agents, and
• suppression of dust during processing and transportation.

Water is a scarce resource in Australia. Governments and the industry at large strongly encourage water recycling when possible. Through the mining process, however, water will become polluted. This is why it needs to be contained and treated before it can be recycled back into the environment.

SciDev and Fortescue share price snapshots

At its current level of 68 cents, SciDev's share price is on an upward path. This time last year, shares in the company were selling at 57 cents. In the general panic of COVID-19 the share price reached a low of 25 cents.

Fortescue's share price, similarly, is also trending in the right direction. Just 12 months ago, shares in the miner cost an investor $8.58 each. As of yesterday, the share price was $22.18. That's an impressive 142.1% gain over 52 weeks.

The respective market capitalisations of SciDev and Fortescue Metals are $104.2 million and $68.3 billion.

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SciDev Ltd (ASX: SDV) shares are soaring today after the company released its half-yearly report. In morning trade, the SciDev share price jumped 10% to an intraday high of 77 cents before retracing to its current price of 73.5 cents, up 5%.

Why is the SciDev share price rising?

The ScidDev share price is responding positively today after the company announced its first-ever profit. 

ScidDev's revenue for the first half of FY21 came in at $18.3 million, reflecting strong business development across all four of its sectors. As drilling activities continued to rebound, the oil and gas sector's continued growth delivered an impressive $6.9 million towards revenue. All up, this drove the impressive 300% in revenue growth compared to the same period last year.

Cash receipts were also strongly higher on the prior corresponding period, rising from $3.8 million to $15.8 million for the half. However, despite the strong uplift in cash receipts, cash from operating activities was negative $4.6 million for the period. SciDev claims that the negative cash flow reflects timing differences between revenue and costs, and a product inventory build as the company aims to drive future growth.

Despite the negative cash flow, SciDev held $7.1 million in cash at the end of the half, ending the period with $3.5 million of inventory on hand. 

Management comments

Reflecting on the company's performance in the first half of  FY21, SciDev chief executive officer Lewis Utting said:

It is pleasing to deliver a profit over this period. The strong revenue growth we delivered is a positive reflection of the continued work from the SciDev team and the growing acknowledgement and appreciation from the market for our bespoke products and technology.

Importantly, we are continuing to progress towards cashflow sustainability. The Company delivered a positive net cashflow from operations of A$1.8m in the second quarter. With our growth pipeline and strong gross profit margin we will continue to push towards positive cash generation over the remainder of FY21.

Outlook

Also in today's update pushing the SciDev share price higher, the company commented on its plans for the remainder of FY21. These include focusing on SciDev's presence in the North American oil and gas sector. On this front, the business is continuing discussions with technology partners in the area. It also plans to carry out ongoing assessments of strategic growth opportunities globally.

The SciDev share price has had a disappointing time as of late, falling by more than 4% over the last month prior to today's rise. Incorporating today's share price gains, SciDev shares are up 0.68% for the one-month period. In comparison, the All Ordinaries Index (ASX: XAO) has risen 2.2% over the same period.

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Scidev Ltd (ASX: SDV) today published a quarterly report which builds on steady progress over the past two years. Accordingly, the SciDev share price has surged up 10.2% to 75 cents at the time of writing.

The company develops chemistries and engineering solutions to help clients with a range of operational issues associated with water. For instance, it develops coagulants and flocculants to treat wastewater. Moreover, it has a proprietary system to provide real-time monitoring of solid-liquid separation in mineral processing. Furthermore, it also produces products to recycle and minimise the use of oilfield waters. 

The headline of the quarterly report is a record $9.4 million in sales, which is likely the issue that drove the share price up. This includes $4.6 million in sales during September alone. 

SciDev performance highlights

Strong performance in the quarter was reflected across all sectors, including mining & mineral processing (32%), oil & gas (32%), construction & infrastructure (29%), and water & wastewater (7%). Specifically, revenue was strong in oil & gas as a result of improved drilling activity in the US shale sector. In addition, SciDev conducted direct work with several key customers, adding to revenue strength.

In addition, the company added the Shell Oil Company as an R&D partner for new technology development focussed on gas to liquid solvents. Critical to this project was the addition of a new PhD qualified R&D manager to the team, seconded to Shell, to develop new applications for this type of chemistry.

 Existing business in the mining sector continued. In addition, the contribution from the infrastructure sector also continued to grow as the company expands further. The SciDev share price has been rising gradually over the past 6 months in response to regular announcements of new contracts and work. 

What's the future for the SciDev share price?

The company has a strong business development pipeline with field qualifications under way across all sectors. This includes plans to expand further into construction, and new services in oilfields and mining. In particular, companies in the mining sector have invited SciDev to participate in several competitive tenders. 

Within water and wastewater the company continues to participate in a major national tender. Its ability to produce though its plant in Sydney delivers security of supply, which is an attractive proposition.

Reflecting on Q1 FY2021, SciDev chief executive officer Lewis Utting said:

The September quarter business performance was outstanding and sets the scene for a strong FY2021. After a COVID-19 impacted June quarter, our growth across all verticals in the September quarter was exceptionally pleasing… We look forward to continuing to deliver on our range of growth opportunities over the coming quarters.

The SciDev share price has risen by 17% over the past 6 months. In the past 5 days of trading alone, it is up by 12.78%.

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The Scidev Ltd (ASX: SDV) share price is rocketing higher this morning after the company announced it has received a trial purchase order from Syncrude, one of Canada's largest operators in the oil sands industry.

At the time of writing, SciDev shares are trading 24.6% higher at $0.785 per share.

What does SciDev do?

Established in 2001, SciDev is involved in the development and application of both chemistry and process control for solids-liquid separation. SciDev's capabilities are primarily used in the mining, resources, water, and food manufacturing industries.

Details of the new Canadian trial

Scheduled to occur late in FY20, SciDev commented that the trial could generate as much as $1 million of revenue and is anticipated to last for approximately 2 weeks.

During the trial, the focus will be on using SciDev's chemistries in Syncrude's CND$1.9 billion full-scale Tailings Centrifuge Plant.

SciDev further pointed out that its staff will be on-site in the Canadian plant to support the trial and ensure it is successfully performed. 

The company added that fluid tailings management is an area which has been placed under increased regulation in the Canadian Oil Sands industry.

Commenting on the transaction, SciDev Managing Director and CEO, Lewis Utting said:

"The order from Syncrude represents SciDev's first entry into the oil sands sector, a significant potential area of growth for SciDev. We are pleased that our offering is continuing to be recognised in the oil and gas sector, which we believe is an exciting area of growth for the Company."

Recap of recent financial results

Last week on February 27, SciDev released its 1H20 financial results. With this, the company reported revenue of $6.12 million for the half, representing a massive 382% increase on the prior corresponding period of 1H19.

Pleasingly for the company, SciDev managed to reduce its net loss by 69% during the period, however, net cash outflows from operations increased to $2.5 million.

Recent major acquisitions

Last year, SciDev completed a $1.9 million acquisition of ProSol Australia. ProSol is a bespoke solutions business that delivers chemistry and services for the mining and water treatment industries in New South Wales.

SciDev also acquired private US company Highland Fluids Technology Inc at the beginning of this year. The purchase price of this acquisition was US$6 million and it will provide the company with access to the onshore oil and gas market.

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The Scidev Ltd (ASX: SDV) share price surged as much as 8% higher today following the release of the company's half-year FY20 results.

Established in 2001, SciDev is involved in the development and application of both chemistry and process control for solids-liquid separation. SciDev's capabilities are primarily used in the mining, resources, water and food manufacturing industries.

SciDev closed the day 1.41% higher at $0.72 per share, which brings the company's market capitalisation to $93 million.

Strong revenue growth and reducing losses

SciDev reported revenue of $6.12 million for the six months to December 2019, representing a 382% increase on the prior corresponding period (pcp) of 1H19.

Pleasingly for the company, SciDev managed to reduce its net loss by 69% during the period to $191,000. However, net cash outflows from operations increased to $2.5 million, up from $0.7 million in the pcp. According to the company, the increase in cash outgoings was attributable to a product inventory build as it gears up to deliver on recent contract wins.

Overall, SciDev recorded cash receipts of $3.8 million and a net cash position of $3.07 million at the end of the period.

Major acquisitions

During the six month period, SciDev completed a $1.9 million acquisition of ProSol Australia. ProSol is a bespoke solutions business that delivers chemistry and services for the mining and water treatment industries in New South Wales.

SciDev also made another acquisition, private US company Highland Fluids Technology Inc, which was announced on 2 January this year. The purchase price of this acquisition was US$6 million and it will provide the company with access to the onshore oil and gas market.

Commenting on SciDev's half-year performance, Managing Director and Chief Executive Officer Lewis Utting said:

"The first half of financial year 2020 was a period of record revenue for SciDev as we successfully executed on a range of business development opportunities globally."

"Complementing our contract wins, we were pleased to have made two acquisitions – ProSol Australia and Highland Fluid Technology – which expand our addressable markets into attractive new verticals and geographies," he added.

Market outlook

SciDev commented that it has so far maintained strong momentum into the second half of 2020. The company will remain focused on growing its existing organic growth pipeline and moving towards its strategy of positive cash flow generation during the short term.

During the remainder of FY2020, the company will also focus on integrating its Highland Fluid Technology business as well as drive business development opportunities available within the US oil and gas sector.

SciDev will also continue to grow its relationship with strategic partner, Nuoer China, and continue to develop opportunities within the domestic civil and construction industry.

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