Anaergia Reports Third Quarter 2022 Financial Results

Year-to-date revenue up 47% from the prior year

BURLINGTON, Ontario–(BUSINESS WIRE)– Anaergia Inc. (“Anaergia” or the “Company“) (TSX: ANRG), a company that offers integrated waste-to-value solutions to reduce greenhouse gases by cost-effectively turning organic waste into renewable natural gas, fertilizer, and water, today announced its financial results for the three- and nine-month periods ended September 30, 2022. All financial results are reported in Canadian dollars unless otherwise stated.

Anaergia’s third quarter results show yet another healthy increase in revenues. Not yet reflected in our financial results is the performance of a number of our build-own-operate (“BOO”) renewable natural gas (“RNG”) facilities that are ramping up and those that will start operating by the end of this year.

During 2022, there have been multiple new regulatory initiatives introduced across North America and Europe that call for long-term RNG supply increases. While the pace of implementation of these initiatives is slower than anticipated, they are expected to drive growth opportunities for Anaergia.

“Anaergia is continuing to see increasing market tailwinds since the Company’s initial public offering last year,” said Dr. Andrew Benedek, Chairman and CEO of Anaergia. “While moves towards net zero and saving the environment are gaining momentum worldwide, the added themes of energy security, and higher energy prices, each compound the favourable demand trends for our unique capabilities. The world is on a path to build an energy sector with net-zero emissions. This is an enormous global challenge that requires strong and credible policy actions from governments. While the pace of these actions will be somewhat unpredictable, Anaergia is uniquely positioned to act as policies materialize, with the ability to deploy commercially proven technologies quickly and at scale with a strong pipeline of new BOO projects.”

Q3 2022 Financial Results

Third Quarter financial highlights:

  • Revenues for the third quarter of 2022 (“Q3 2022”) rose 60% to $44.5 million from $27.7 million for the same period in the prior year and rose 47% to $122.2 million for the nine-month period ended September 30, 2022 (“YTD 2022”) from $83.2 million for the same period in the prior year. The increase was driven primarily by Capital Sales projects under execution in the Europe, Middle East and Africa (“EMEA”) market.
  • Gross profit percentage for Q3 2022 increased slightly to 23% from 21% for the same period in the prior year. The uptick in profitability in the quarter was primarily driven by higher revenues. For YTD 2022, the gross profit percentage declined to 21% from 23% for the same period in the prior year owing to project cost overruns earlier in the year.
  • Net income (loss) of ($0.7) million for Q3 2022 was driven by income tax expense and losses in equity-accounted investees. For YTD 2022, ($23.6) million of the ($36.8) million net loss was primarily from losses from changes in the fair value of derivatives (for example, in the value of the option to refinance debt of the Rialto Bioenergy Facility (“RBF”)).
  • Adjusted EBITDA of ($1.0) million for Q3 2022 was an improvement from the ($1.6 million) (adjusted) for the same period in the prior year. The change was mainly attributable to the increase in revenues in the quarter. For YTD 2022, Adjusted EBITDA of ($6.6) million was down from ($0.8) million for the same period in the prior year, mainly driven by lower gross margin and higher SG&A expenses as the Company continues to position itself for future growth.
Three months ended:30-Sep-22 30-Sep-21
 % Change
(In millions of Canadian dollars)   
Gross profit10.05.776%
Gross profit %23%21% 
Income (loss) from operations(2.5)(6.7) 
Net Income (loss)(0.7)(1.8) 
Adjusted EBITDA1(1.0)(1.6) 
Nine months ended:30-Sep-22 30-Sep-21
 % Change
(In millions of Canadian dollars)   
Gross profit25.419.431%
Gross profit %21%23% 
Income (loss) from operations(11.3)(11.3) 
Net Income (loss)(36.8)(6.0) 
Adjusted EBITDA2(6.6)(0.8) 

1 Adjusted EBITDA is a non-IFRS measure. See “Non-IFRS Financial Measures”.
2 Adjusted EBITDA is a non-IFRS measure. See “Non-IFRS Financial Measures”.

Statement of  
Financial Position30-Sep-22 31-Dec-21
(In millions of Canadian dollars)  
Total Assets914.1693.4
Total Liabilities557.5370.0

For a more detailed discussion of Anaergia’s results for the three- and nine-month periods ended September 30, 2022, please see the Company’s financial statements and management’s discussion & analysis of financial condition and results of operations, which are available at and on the Company’s SEDAR page at

Fiscal 2022 and Fiscal 2023 Guidance Update

Relative to prior disclosure, Fiscal 2022 guidance for both Revenue and Adjusted EBITDA has been revised to reflect both the performance for the first nine months and tempered growth expectations for the remainder of the year. As YTD revenues are already approximately equal to Fiscal 2021 revenues, Management expects Fiscal 2022 to show healthy revenue growth of approximately 25% to 35% compared to Fiscal 2021, to between approximately $160 million and $170 million.

This is a reduction from previous Fiscal 2022 revenue guidance. The prior forecast assumed revenues would accelerate each quarter and be particularly high in Q4 2022, largely due to the contribution of BOO projects. Both the RBF and SoCal facilities were expected to be operating at close to full capacity with sales of RNG during the quarter, as were the majority of the BOOs in Italy. Revised outlook reflects a delay in the contribution of the RBF due to the delay in ramp up of feedstock supply to the facility as well as delayed completion of final registration under the federal RIN and LCFS programs which will allow the facility to commence planned sales of RNG. The commencement of such sales is not expected to occur until the end of the fourth quarter. In addition, the timing of capital sales and project execution in both North America and Europe have been behind previous estimates, largely due to client-driven delays that have slowed progression of certain projects.

Management expects Fiscal 2022 Adjusted EBITDA to be approximately ($10) million. The reduction from prior guidance is attributable to the lower expected revenue, and the erosion of gross margin due to cost inflation and higher SG&A as the business works to advance projects.

Management believes there are significant prospects for growth for the Company in Fiscal 2023 and in subsequent years. Nevertheless, with significant macro-economic changes, particularly in interest rates and natural gas pricing, as well as Company-specific matters, including but not limited to the construction and commissioning schedule for BOO projects, management has decided to withdraw the Company’s previously disclosed Fiscal 2023 guidance. Management intends to review key assumptions used to generate its guidance before providing any further updates.

For more information, including management’s assumptions relating to the foregoing guidance, please refer to the Company’s management’s discussion and analysis of financial condition and results of operations for the three- and nine-month periods ended September 30, 2022, which is available on SEDAR at

Non-IFRS Measures

This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures to provide investors with supplemental measures. Management also uses non-IFRS measures internally in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our future debt service, capital expenditure and working capital requirements. Management believes these non-IFRS measures and industry metrics are important supplemental measures of operating performance because they eliminate items that have less bearing on operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management believes such measures allow for assessment of our operating performance and financial condition on a basis that is more consistent and comparable between reporting periods. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of public companies.

Definitions of non-IFRS measures and industry metrics used in this press release are provided below. A reconciliation of the non-IFRS measures used in this press release to the most comparable IFRS measure can be found below under “Reconciliation of Non-IFRS Measures”.

Adjusted EBITDA” is defined as net earnings before finance costs, taxes and depreciation and amortization adjusted for our normalized proportionate interest in our BOO assets and one-time or non-recurring items, stock-based compensation expense, asset impairment charges and write downs, gains and losses for equity-accounted investees, foreign exchange gains or losses, restructuring costs, ERP customization and configuration costs, litigation and other claims settlements, gains and losses resulting from changes in certain balance sheet valuations (such as derivatives and warrants), acquisition costs and costs related to our initial public offering, including estimated incremental auditing and professional services costs incurred in connection with our initial public offering. For further details, refer to “Reconciliation of Non-IFRS Measures” below.

Conference Call and Webcast

A conference call to review the Company’s financial results will take place at 11:00 a.m. (ET) on Thursday, November [10], 2022. It will be hosted by Chairman and Chief Executive Officer, Andrew Benedek, Chief Operating Officer, Yaniv Scherson, Chief Financial Officer, Paula Myson, and Chief Development Officer Hani Kaissi. An accompanying slide presentation will be posted to the Investor Relations section of the Company’s website shortly before the call.

To participate on the call, please sign up to receive your personal event-joining details at the following pre-registration link:

To listen to the webcast live:

The webcast will be archived and available in the Investor Relations section of our website following the call.

About Anaergia

Anaergia was created to eliminate a major source of greenhouse gases by cost effectively turning organic waste into RNG, fertilizer and water, using proprietary technologies. With a proven track record from delivering world leading projects on four continents, Anaergia is uniquely positioned to provide end-to-end solutions for extracting organics from waste, implementing high efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water. Our customers are in the municipal solid waste, municipal wastewater, agriculture, and food processing industries. In each of these markets Anaergia has built many successful plants including some of the largest in the world. Anaergia owns and operates some of the plants it builds, and it also operates plants that are owned by its customers.

For further information please see:

Forward-Looking Statements

This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Company’s annual information form dated March 28, 2022, for the fiscal year ended December 31, 2021. Actual results could differ materially from those projected herein. Anaergia does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

Reconciliation of Non-IFRS Financial Measures

Three months ended: 30-Sep-22 30-Sep-21
(In thousands of Canadian dollars)    
Net income (loss) (747) (1,793)
Finance costs 170 (863)
Depreciation and amortization 884 855
Income tax expense 2,362 (2,394)
EBITDA 2,669 (4,195)
Share-based compensation expense 246 107
Change in fair value of equity investment  (2,346)
(Gain) loss on RBF embedded derivative (807) (306)
Remeasurement of previously held interest in Bioener (3,364) 
Provision for customer claim 1,158 780
Gain on debt restructuring  3,473
ERP customization and configuration costs (456) (341)
Project development write offs 329 922
Costs related to the Offering  1,247
Foreign exchange (gain) loss (775) (919)
Adjusted EBITDA (1,000) (1,578)
Nine months ended: 30-Sep-22 30-Sep-21
(In thousands of Canadian dollars)    
Net income (loss) (36,790) (5,961)
Finance costs 177 (1,224)
Depreciation and amortization 2,687 2,372
Income tax expense 5,912 (2,126)
EBITDA (28,014) (6,939)
Share-based compensation expense 827 405
Change in fair value of equity investment  (2,346)
(Gain) loss on RBF embedded derivative 19,000 (3,513)
Remeasurement of previously held interest in Bioener  (3,364) 
Stock warrant valuation (gain) loss  (615)
Share of loss in equity accounted investees  914
Provision for customer claim 4,623 2,629
Gain on debt restructuring  3,473
ERP customization and configuration costs (464) 244
Project development write offs 916 1,496
Costs related to the Offering 263 4,332
Foreign exchange (gain) loss (487) (816)
Adjusted EBITDA (6,593) (736)

For media relations please contact: Melissa Bailey, Director, Marketing & Corporate Communications,
For investor relations please contact:

Source: Anaergia Inc.


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