Today, Permascand has decided to write down an order that was previously reported as part of the company's order backlog within the Electrification & Renewables business segment. The order backlog is written down by approximately SEK 65 million as the company, after dialogue with the client, estimates that parts of a previous order will no longer be realized within the foreseeable future. The reason is that the client decided to reduce the order due to internal priorities and a changed geographical focus. The delivery of the order was previously estimated for the second quarter of 2023, which implies that sales for the current calendar year will not be negatively affected.
This also entails that Permascand will repay approximately SEK 20 million of the advance payment, received in connection to the placing of the order in 2018. The repayment of SEK 20 million will have a negative impact on the company's cash flow during the fourth quarter of 2022.
Permascand's interim report for the second quarter will be released on August 18, 2022, as previously announced.
Permascand has received two orders from a world-leading supplier of chlorate regarding electrochemical cells and correlated equipment for a Greenfield project in South America. The orders will be included as order intake for the first quarter of 2022 and is worth SEK 100 million, with planned deliveries beginning in the latter part of 2022 and beginning of 2023.
The business partnership is well-established and Permascand has historically delivered coatings and new installations to the customer's facilities in Sweden and Europe, as well as North and South America.
“Receiving these orders is an honourable project for us and it is very positive that we can contribute to a new project of this kind. Together, we increase innovation and sustainability in the industrial market and support the green technology transition”, says Peter Lundström CEO at Permascand.
The client is a global, specialty chemicals leader. Markets and consumers worldwide rely on their solutions to manufacture chlorate, hygiene products, cleaning goods, agriculture and food, pharmaceuticals, and building products. The company operates in over 80 countries around the world with industry-leading brands.
Permascand has received an order from its largest client, one of the major global players in the ballast water treatment system (BWTS) arena, for the supply of ballast water disinfection cells, confirming a continued partnership and further cementing Permascands position as one of the world leaders in the provision of ballast water treatment cells. The order will be included as order intake for the third quarter of 2021 and is worth EUR 17,5 million, with planned deliveries beginning 2022.
The discharge of untreated ballast water from ships can have a negative impact on the marine environment and is now strictly governed through a number of globally enforceable regulations. Permascand’s electrochlorination cells used to treat ships ballast water and other water purification applications, play a key part of increased sustainability within the field by preventing the spread of invasive aquatic species.
“We are happy to receive this order and to continue this well-established partnership with one of our major clients, it is of great value and is aligned with the green transition and future growth. It represents yet another significant step towards becoming the leading independent global supplier of electrochemical solutions for clean tech applications in green technologies.”, says Peter Lundström CEO at Permascand.
During the 2020 financial year, 61 percent of Permascand’s net sales were attributable to orders from the client. The client was established by a team of experts with a strong background and solid knowledge in waste and water treatment technology for marine applications. Driven by the needs of shipowners and stricter environmental protection legislation, the company started designing and manufacturing innovative BWTS. Today, the company holds a strong position in the global market for BWTS.