Xebec Technologically positioned Xebec Adsorption offers something different. The $511.28 million renewable gas company promotes a no-carbon future. It provides clean energy solutions for the distributed generation of renewable and low-carbon gases in energy, mobility, and industry applications.
While the business model (cleantech and industrial equipment sales plus services) is simple, it has significant revenue growth potential. Likewise, the mission is noble. Xebec aims to help the world transition to a low-carbon future by accelerating the production of renewable gases.
Xebec deploys proprietary technologies to clients in North America, Europe, Asia, and the Middle East. Since the focus is on environmentally responsible gas generation, governments and organizations can reduce carbon footprints while saving operating costs.
Although it reported a net loss of $16.8 million in the first half of 2021, total revenue increased 68% to $53.3 million versus the same period in 2020. Management’s strategy is to grow revenue and earnings profitably and build a sustainable business to drive shareholder value.
Notably, as of June 30, 2021, Xebec’s working capital stands at $97.4 million, or a 12% increase from June 30, 2020. The company also obtained credit facilities worth $59.25 million from the Technology & Banking Group of the National Bank of Canada.
Market analysts forecast a return potential of 31% in the next 12 months. The current share price of $3.33 is a good entry point as it could climb to $4.35. Xebec is technologically well-positioned and should benefit significantly from the global push to decarbonize.