Dually-Listed Micro Cap Soars On 2022 Financial Results

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Wednesday, April 5, 2023

It’s a little on the rare side for us to discuss utility stocks in the penny stock realm, and it’s even more surprising when the stock is dually listed to boot! 

Wednesday came as a surprise when we saw a dually-listed utility penny stock rally strongly after the company reported their financial results from their fiscal year of 2022. Shares of UGE International Ltd. (TSXV:UGE) (OTCQB:UGEIF) rallied strongly on the following fiscal year highlights:

- Ended 2022 with 2.3 MW of operating assets that contributed $350.6K of operating income with a 93% gross margin representing an increase of 85% in recurring revenue over the prior year. As UGE continues to scale its operational portfolio, recurring revenue will continue to grow and become the Company's dominant source of revenue.
- Realized revenue of $3.8 MM, representing growth of 42% over 2021. Revenue included $2.7 MM in one-time revenue from client-financed EPC agreements, compared to $2.3 MM in the prior year, and $732.0K in engineering and consulting revenues, compared to $246.7K in the prior year. Total gross margins were 36% compared with 32% in 2021.

A few key business highlights included the company:

- Reached commercial operation on three solar facilities totaling 1,430kW for a total of 2,326kW at December 31, 2022, which more than doubled operating capacity from 896kW at December 31, 2021.
- Grew the US project backlog to 260 MW compared with 148 MW on December 31, 2021.

UGE International Ltd is a turnkey commercial solar company, developing, building, and financing solar projects. UGE has over 600 projects and operates in three core markets: the US, Canada, and the Philippines. The company provides complete turnkey approach, taking projects from conception all the way through to financing and operation, capturing greater margins and recurring revenue for shareholders, while delivering a superior experience to its clientele. It operates in one operating segment: Renewable energy solutions.

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