Volatus Aerospace Corp. (OTC:VLTTF) Stock Gains Momentum: Here is Why
In light of the announcement made by the company this past Friday, it may be a good time for investors to consider adding Volatus Aerospace Corp. (OTC:VLTTF) to their watch lists for the week. The company was in sharp focus last Friday after it announced that it had expanded into the United States oil and gas surveillance operations space.
The company announced that it accomplished that through the execution of an initial contract with a major energy company based in the United States. The operations would commence in October of this year. Volatus Aerospace is primarily known for being a leader in the aerial intelligence industry and has managed to create a strong track record in the oil and gas industry in Canada.
It had been providing its services in Canada as far back as 2013 through Canada Air National and Synergy Aviation, its subsidiary units. Additionally, the company also clocked a total of more than 1 million kilometers in terms of pipeline right of way on an annual basis to Ottawa, Ontario, from Kitimat, British Columbia.
The Chief Executive Officer of the company, Glen Lynch, spoke about the latest development as well. He noted that Volatus Aerospace possessed the expertise and experience that put it in a strong position to capture the market opportunity in the United States. He stated that the market in the United States could reach as much as $1.1 billion by 2023. He went on to state that he expected the company to grow at an annual rate of C$4 million in 2024 and have an EBITDA margin of 10%. That would be in line with the service agreement that the company had in place in Canada.
As per information from the United States Chamber of Commerce Global Energy Institute, the country boasts 4.2 million kilometers of oil and gas pipelines. That made the total pipeline length five times that of Canada, as per the data provided by the Canadian Association of Petroleum Producers. More and more energy companies are now deploying the power of aerial inspection services so as to ensure that the properties are not only safe but also compliant with the regulations.
On August 28, Volatus Aerospace announced its financial results for the fiscal quarter that ended on June 30, 2023. In the three months, the company reported revenues of $8,684,991, which worked out to a year-on-year rise of 31% from the second fiscal quarter of 2022. The scale of services had driven the growth in revenues in the quarter. The gross profits stood at $2,960,475, which worked out to a year-on-year rise of $1,059,556. The gross margins for the quarter went up to 34%, which represented a rise of 500 basis points from the prior-year quarter.
At the end of the quarter, Volatus Aerospace recorded working capital of $3,541,249. The company’s comprehensive loss for the quarter was $2,458,211, which was a lower figure than the comprehensive loss of $3,003,365 in the prior year quarter.
