BALLERUP, Denmark - LiqTech International, Inc. (NASDAQ: NASDAQ:LIQT), a company specializing in advanced filtration solutions, has announced its first U.S.-based order for a water treatment pilot system from Razorback Direct Oilfield Solutions and Services LLC. This order marks a new chapter for LiqTech as it expands its North American operations.
The pilot system, a containerized unit for treating produced water, is part of a strategic move to demonstrate and validate the effectiveness of LiqTech's ultrafiltration technology. Produced water is a byproduct of oil and gas extraction, and treating it for reuse is becoming increasingly important due to freshwater constraints and regulatory pressures.
Razorback Direct, headquartered in Houston, focuses on water treatment consultancy for the oil and gas industry and aims to reduce operating expenses for operators through efficient, chemistry-enabled solutions. The collaboration with LiqTech enhances Razorback Direct's portfolio by integrating LiqTech's ceramic ultrafiltration technology.
In February, LiqTech and Razorback Direct entered into a distribution agreement to commercialize LiqTech's filtration technology for applications such as re-injection, reuse, and lithium harvest across several U.S. states. The pilot system will test the technology's efficiency at a customer site, with the goal to eventually roll out full-scale commercial systems for onshore oil and gas operations in the U.S.
LiqTech's CEO Fei Chen expressed optimism about the pilot project's potential to lead to widespread adoption of their technology. Ray Juman, President & CEO of Razorback Direct, highlighted the project's significance in demonstrating the system's capabilities in a real-world U.S. setting.
The Middle East has seen a similar LiqTech system in operation since May 2022, which has reportedly delivered clean brine from over 99% of the feedwater, showcasing minimal chemical use and high energy efficiency.
LiqTech International, based in Nevada, is known for its innovative silicon carbide ceramic membranes used in gas and liquid purification. The company's filtration technologies are designed to meet the demands of challenging purification applications.
This news is based on a press release statement from LiqTech International, Inc.
InvestingPro Insights
As LiqTech International, Inc. (NASDAQ: LIQT) makes headway with its strategic North American expansion, recent data and analysis from InvestingPro reveal a mixed financial landscape for the company. LiqTech's market capitalization currently stands at $17.53 million, reflecting the market's valuation of the company. Despite a challenging financial performance with a negative P/E ratio of -2.36 for the last twelve months as of Q1 2023, the company's resilience is evident in its ability to maintain a price to book ratio of 0.91, suggesting assets are still valued relatively close to the company's balance sheet figures.
While LiqTech's revenue has seen a slight uptick of 0.09% over the last twelve months as of Q1 2023, the company's gross profit margins remain weak at 14.2%, indicating potential cost management or pricing challenges in its operations. This is further supported by an operating income margin of -42.64%, highlighting the company's struggle to translate revenues into operational profitability.
Among the InvestingPro Tips, it's notable that LiqTech holds more cash than debt on its balance sheet, which could provide some financial flexibility in its expansion efforts. However, the company is quickly burning through cash and analysts do not anticipate profitability this year. Additionally, the company's liquid assets exceed short-term obligations, which is a positive indicator of its ability to meet immediate financial liabilities.
For investors considering LiqTech's potential, it's important to note that the company does not pay a dividend, which may influence investment decisions for those seeking regular income streams. Investors interested in deeper analysis can find additional InvestingPro Tips on the company's financial health and stock performance by visiting InvestingPro. There are 9 additional InvestingPro Tips available, which provide further insights into LiqTech's financial metrics and market position. To access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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