Fuel Tech, Inc. (FTEK) stock soared 17.94% in the current-market trading session at the price of $2.24 despite no fundamental reason. The last published news was its financial results for the second quarter of 2021. FTEK produces and commercializes state-of-the-art proprietary technologies that provide water treatment and advanced engineering services to decrease air pollution. These technologies facilitate clients to operate in a cost-effective and environmentally sustainable way.

FTEK Announced Second Quarter 2021 Financial Results

On 10th August 2021, FTEK published its financial results for the second quarter ended on 30th June 2021 and provided corporate updates.

Financial Highlights

FTEK reported consolidated revenues of $5.2 million for the quarter ended 30th June 2021. It represents a gain of 18.6% from $4.4 million in the same period of 2020. The gross margin was 49.5% for the second quarter of 2021. For the second quarter of 2020, the gross margin was 13.7% of revenues. SG&A expenses grew to $3.0 million from $2.8 million in the second quarter of 2021. It reveals higher regulatory costs balanced by a reversal of a $0.5 million charge.

FTEK reported an operating loss of $(0.7) million in the second quarter of 2021. The operating loss was $(2.4) million in the same quarter of 2020. Net loss was $(0.8) million or $(0.03) per share in the second quarter of 2021. For the second quarter of 2020, net loss was $(2.5) million or $(0.10) per share.

FTEK reported an Adjusted EBITDA loss of $(0.6) million in the second quarter ended 30th June 2021. Adjusted EBITDA loss was $(2.2) million in the second quarter ended 30th June 2020. On 30th June 2021, cash and cash equivalents were approximately $36.6 million. The restricted cash was $0.4 million during the quarter. Stockholders’ Equity was $45.9 million, or $1.52 per share, as of 30th June 2021.

Management Comments

Chief Executive Officer of FTEK, Vincent J. Arnone, remarked that their Air Pollution Control business remained challenging due to continuous project delays and cancellations resulting from Covid-19. They are happy to publish $4.5 million in new contracts from clients in Korea and Europe. The company continue to raise a global sales pipeline to $40-50 million. It ended the second quarter with solid balance sheet growth and zero debt. The company is well-positioned to enhance its business growth initiatives related to the control of toxic emissions, he concluded.