The Company generated record revenue of $32.8 million USD and positive adjusted EBITDA for FYE 2024
FORT LAUDERDALE, Fla., Sept. 30, 2024 (GLOBE NEWSWIRE) -- ZEFIRO METHANE CORP. (Cboe Canada: ZEFI) (Frankfurt: Y6B) (OTC:ZEFIF) (the "Company", "Zefiro", or "ZEFI") today announced the Company's consolidated financial results for the fiscal year ended June 30, 2024 ("FYE 2024"). For the FYE 2024, the Company generated record consolidated revenues of $32.8 million USD.
For the quarter ended June 30, 2024, the Company generated record consolidated revenues of $9.4 million USD, an approximate 10% increase from the quarter ending March 31, 2024. The increase in revenue resulted in a record gross profit of $2.9 million USD (approximate 31% gross profit margin). ZEFI generated adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") of $222,453 USD.
Please refer to Zefiro's SEDAR+ profile at www.sedarplus.ca/ for full filings containing these financial results.
Zefiro Founder and Chief Executive Officer Talal Debs PhD commented, "Zefiro's growth vector is expanding rapidly, and we have come a long way in the last year. Our corporate milestones, combined with our financial success, tell a story of momentum that is positioning the Company as a market leader driven by innovation, foresight, and impact. Our growing team brings the highest level of expertise to detecting and mitigating the large and often dangerous legacy problem of toxic methane emissions."
In July 2024, Zefiro announced the appointment of Mohit Gupta as Chief Financial Officer. With over thirty years of experience in banking and energy trading, Gupta was one of the key founding members of J.P. Morgan's Energy Trading business. He said, "Through Zefiro's new partnerships and acquisitions, the Company now employs the most sophisticated capabilities in the industry and there is tremendous demand for it. Our forward momentum is accelerating swiftly on all fronts – acquisitions, client pipeline, talent acquisition – and we are having meaningful dialogues on global expansion. As an originator and distributor of quality carbon credits, we are positioned to capitalize on the growing need for offsets."
Zefiro's business strategy updates include:
1) Originating and distributing quality carbon offsets from reducing methane emissions
Zefiro announced the presale of a portion of its carbon offset portfolio to EDF Trading, a leading player in the international wholesale energy market and part of EDF Group, a global leader in low-carbon energies. Zefiro has expanded its efforts to seal potentially hazardous oil and gas wells and these credits, verified by certified third-party auditors, will be generated from this initiative.
The Company is also actively exploring commercialization opportunities to address the needs of corporate players who have committed to a carbon-neutral footprint by utilizing high-quality offsets such as those originated by Zefiro.
2) Expansion into new U.S. geographies
Zefiro expanded its oil and gas well-plugging operations into Oklahoma, which is expected to result in key growth within numerous markets critical to the environmental services industry, including Louisiana and other southern states, and the expansion of the Company's portfolio of high-quality carbon offset products. ZEFI also continues to aggressively build out its business in Appalachia.
3) Participation in the allocation of infrastructure funds from federal and state governments to plug orphan wells
Zefiro successfully completed Pennsylvania's first-ever Infrastructure Investment and Jobs Act ("Bipartisan Infrastructure Law")-funded oil well remediation project. The federal legislation allocated $4.7 billion USD to help address the nationwide proliferation of abandoned oil and gas wells, including granting over $300 million USD to the Commonwealth of Pennsylvania alone.
4) Continuous evaluation of new products, offerings, and partnerships
ZEFI announced numerous commercial transactions to bolster the Company's environmental services capabilities. This series of strategic transactions began with the acquisition of Appalachian Well Surveys, Inc. ("AWS"), a Cambridge, Ohio-based wireline company that has provided Zefiro the resources needed to expand their operational capacity within key markets and become the energy sector's first comprehensive "end-of-life" provider for entities seeking to meet their well-retirement targets. ZEFI subsequently announced that the Company had purchased a minority ownership stake in Winterhawk Well Abandonment Ltd. ("Winterhawk"), a manufacturer of specialized downhole tools and technologies designed to expand casing in oil and gas wells. Specifically, Zefiro subsidiary Plants & Goodwin, Inc. ("P&G") and Winterhawk entered into an exclusive patent license agreement for Winterhawk's U.S. patents and the ability to sublicense Winterhawk Products to other entities operating in the United States.
In addition to these strategic investments in the Company's well remediation services division, Zefiro also took steps to advance ZEFI's accessibility throughout the global carbon offset marketplace. Specifically, Zefiro announced a strategic partnership with Fiùtur, a multi-party technology platform that provides digital measurement, verification, and Data Governance Framework services to environmental remediation companies. The agreement is aimed at expanding access to Zefiro products throughout the offering's entire "lifecycle," and stipulates that Zefiro will begin deploying its comprehensive methane leak abatement services through Fiùtur's digital trust and verification platform during Q4 of 2024 and participate in Fiùtur's Series A fundraising campaign.
5) Global expansion and development of a pipeline of opportunities
Zefiro is pursuing global initiatives to market its carbon credit portfolio to multinational corporations and global market participants, including through high-quality carbon offset exchanges.
Notable Highlights:
The Company generated record consolidated revenues and Adjusted EBITDA for the year ended June 30, 2024.
On April 23, 2024, the Company launched its Initial Public Offering on the Cboe Canada Inc. stock exchange. Zefiro shares also began trading on the Frankfurt Stock Exchange ("FSE") under the symbol "Y6B" on May 2, 2024.
On July 19, 2024, the Company announced that its common shares were listed in the U.S. on the OTCQB – "The Venture Market" – under the symbol "ZEFIF".
