FSI.v @ .09$: two brine plant contracts announced, 1M$ and 8M$ today, material impact on profitability

One brine plant contract was announced in the MD&A of Q4, for 1M$ (see bottom of page 2 of the annual MD&A). Here is the extract confirming this valuable contract for Baden, as Russia ramps up its economic development phase since Vladimir Putin has been re-appointed at the head of the country.


Revenue

... While this focus may have resulted in a short term drop in revenues for the quarter as discussed below, it has resulted in a number of successes in 2012 including the Company securing a patent for its brine plant technology and process for the Russian Federation. The patent is valid to 2021, and will help solidify the company as the key supplier of this oilfield production process for the major Russian oil producers and protect the Company’s intellectual property. In addition, in April 2012 the Company signed a contract to deliver a brine plant to a Russian customer. The total contract is for USD982,400 of which payment thereof will be secured by a letter of credit prior to commencement of the project. The Company anticipates that it will deliver and receive complete payment for the brine plant sometime in the third or fourth quarter of 2012.



Today, the company announced another brine plant contract for 8M$, the largest in history. Investors ought to remember the company declared +.005$/share of profits with 1.3M$ of revenue in Q1, so the added 9M$ of work recently inked should propel the metrics into undervalued territory. The company is also rumored to be in negotiation for a few other brine plant contracts.

FSI signs $7.98-million (U.S.) brine plant contract

2012-06-07 09:40 ET - News Release

Mr. Richard Ball reports

FSI AWARDED BRINE PLANT CONTRACT- LARGEST CONTRACT IN COMPANY'S HISTORY

FSI Energy Services Inc. has been awarded its largest-ever contract, for the manufacture, delivery and installation of a brine blending plant. The contract is with a major Russian oil producer, and is the 12th such plant purchased from FSI by the client.

The client cited the design and high quality of FSI's products in its decision in awarding the tender. Production is scheduled for the summer/fall of 2012, with delivery expected in November, 2012, and installation and commissioning expected in April to May, 2013. Total value of this contract is approximately $7.98-million (U.S.).



The above is simply my personal understanding and not to be construed as investment advice. I’m not a broker, director, manager or employee of the aforementioned company, just a shareholder. Some typos could have occurred, do your own due diligence.