American Power Group Corporation has announced results for the three months ended 31 December 2014.
The company reported a backlog of US$1.6 million, which grew 63% during the quarter, and was four times higher than the backlog recorded in the same period of 2013.
Net sales for the quarter decreased by approximately US$787 000 to US$1.06 million, primarily due to slower Canadian oil and gas conversions and delayed vehicular orders.
US oil and gas stationary conversion revenue grew 110% to US$882 000. North American vehicular conversion revenue decreased US$445 000, or 86% compared to the prior year, due to a number of factors including the impact on customers of the recent drop in diesel prices and the tightening price spread between diesel and natural gas.
APG announced an expanded sales and marketing initiative in October 2014 to include co-marketing relationships with large national and regional CNG and LNG fuel suppliers. The company also launched its first vocational severe-duty dual-fuel gliders into the vehicular oil and gas and logging industries, with Harrison Truck Centers.
Commenting on the first fiscal results of 2015, Lyle Jenson, CEO, stated: “Due to the economic and geo-political ramifications of increasing oil reserves and projected lower short-term growth in oil demand, the price of oil has dropped to the US$50 per barrel range.
“This has resulted in a dramatic drop in diesel prices which have gone well below the average US$3.00 per gallon level projected by the energy experts…
“While natural gas prices at the pump have remained relatively stable in the US$2.00 to US$2.25 per gallon range, the price spread between lower diesel prices and natural gas has tightened.
“Because our dual-fuel technology displaces higher cost diesel fuel with lower cost and cleaner burning natural gas, the recent oil/diesel pricing and tighter price spreads have impacted inventory replenishment and implementation schedules of existing and prospective customers.”
Jensen concluded: “The diversity of APG’s dual-fuel patented hardware and proprietary natural gas software is proving to be of strategic value during this unexpected dramatic drop in oil prices.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/17022015/apg-reports-first-fiscal-results-for-2015-264/