Getech shares soar as revenue beats expectations
( ), a geoenergy and green hydrogen company, released a trading update for the year ended 31 December 2022 (FY22) in which it said that it had beaten FY 22's market expectations, with double-digit revenue growth to £5.0m, compared to £4.3m in FY21. Revenue was split 66%/23% between petroleum and critical minerals. The company said it aims to further diversify its revenue streams.
The company also reported a record order book of £4.6m, up 39% year-on-year, and a cash position of £4.3m on December 31 2022, with cash held flat across 2H22 through "sales growth and careful cost management in hydrogen asset development operations".
Strategic progress
Getech said it continued to benefit from high petroleum customer retention rates by aligning its offering with carbon storage solutions. In doing so, the company believes it is futureproofing its role in the growing sector that is expected to remain a "significant near-term engine of revenue". It said it has built new low-carbon solutions over the past 2 years for critical minerals, geothermal, green hydrogen, and carbon storage by repurposing data and software that it developed for the petroleum industry.
These solutions have already been used by its customers to locate copper, gold, cobalt, and helium, manage carbon storage licensing rounds, and explore for geothermal energy, Getech explained. The company is now expanding its offering to include lithium and natural hydrogen.
As announced 2 weeks ago, Getech has joined forces with Eavor, a global geothermal technology company, to locate and appraise closed-loop geothermal projects in Latin America.
At Shoreham Port, Getech said it increased phase 1 hydrogen design capacity from 800 kg/day to 2.5 tonne/day and extended its commercial exclusivity to 2027 as it as saw increasing demand. In Inverness, Getech reported discussions with the Highland Council about its Highland Hydrogen Network project have now regained momentum.
View from Vox
Getech starts 2023 with a strong balance sheet, including double-digit revenue growth, record order book, and comfortable cash position of £4.3m. The company's revenue growth beat expectations and its management confirmed no intention to raise capital from shareholders. shares jumped 23% on the news.
The company exists at the forefront of the energy transition. A heightened security environment has underlined the role of oil and gas as transitional sources of energy, with forecasts indicating $1 trillion/year increase in energy investment required to resolve the dual challenge of energy affordability and security. With revenue split 66%/23% still in favour of hydrocarbons, but combining its petroleum offerings with carbon storage solutions, the company is well-positioned to retain customers through the transition to net zero.
There is significant potential to scale up Getech's revenue from sectors looking to decarbonise. In 2022, the company secured its first" fast moving consumer goods customer", delivering an integrated decarbonisation solution for the customer's portfolio of assets to help them achieve ESG objectives.
Getech is making progress with its projects in Shoreham and Inverness while continuing to bring in revenue from sales and licensing of its advanced analytics solutions. With high revenue visibility for 2023 and 2024 thanks to a long sales pipeline, and an ambitious development schedule, Getech is set to reach its goal of establishing 500MW of green hydrogen assets in the UK by 2030.
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