VANCOUVER, BC / ACCESSWIRE / April 30, 2024 / Ostrom Climate Solutions Inc. ("Ostrom Climate" or the "Company") (TSX-V:COO)(Frankfurt:9EA), a leading developer in carbon project management and climate solutions, today announced its financial results for the fourth quarter and the full fiscal year ended December 31, 2023.
Fourth Quarter Financial Highlights:
Q4 2023 revenue reached $2,561,929, an increase of 54.4% from $1,659,627 in Q4 2022, driven by strong sales in Verified Emission Reduction (VER) units and enhanced service offerings.
Gross profit for the quarter was $957,066, representing a 105% increase from $467,316 in Q4 2022, reflecting higher revenue and improved operational efficiency.
The company reported a quarterly net loss of $836,222, deepening from a net loss of $17,450 in the same period last year, due to increased operational expenses related to scaling the business and project development expenses.
Fiscal Year Financial Highlights:
Fiscal year 2023 revenue totaled $4,603,582, marking a 16.1% increase from $3,964,612 in 2022. This growth was primarily fueled by robust demand for consulting services and carbon credit sales.
Gross profit for the year improved to $2,040,376, up 23.7% from $1,649,191 in 2022, with the gross profit margin increasing to 44.3% from 41.6% the previous year. This improvement was attributed to a more lucrative mix of consulting services and purchase savings related to VERs.
The net loss for the year expanded to $1,823,325, compared to $490,351 in 2022. This increase in net loss was largely due to elevated operating expenses necessary for strategic investments in project development of VERs and market expansion.
Operational and Strategic Developments:
During the year, Ostrom continued to expand its project pipeline and capabilities, notably through strategic capital allocation and leveraging its established expertise in the carbon market. This strategic focus has positioned the company to capitalize on the anticipated increase in demand for high-quality carbon offsets, driven by global net-zero commitments and the evolving regulatory environment.
Management Commentary:
"Our financial performance this year reflects the opportunities we've navigated in a dynamic market environment," stated Phill Cull, CEO of Ostrom Climate "The significant growth in our revenue and improvements in gross profit demonstrate the effectiveness of our strategic initiatives and the dedication of our team. As we move forward, we remain focused on enhancing our operational capabilities and delivering on our commitment to sustainability and shareholder value. Increased expenditures this year were primarily linked to strategic investments in a Climate-Smart agriculture project in Southeast Asia. As our Climate-Smart project progresses, we anticipate capitalizing the associated costs in alignment with our new corporate strategy, which focuses on developing our own carbon projects to produce high-quality VERs."
About Ostrom Climate Solutions Inc.
Ostrom is one of North America's leading providers of carbon project development and management services, climate solutions, and carbon credit marketing. Over the past 12 years, Ostrom has validated and verified forest carbon projects globally for voluntary and regulated markets, having developed 16 million acres of forest land for conservation and monetized over 10 million carbon credits. Based out of Vancouver, B.C., Canada, the Ostrom team has a global reach, has worked with over 200 organizations globally, including Fortune 500 companies, managed projects in partnership with indigenous stakeholders and has extensive on-ground experience in emerging markets.
Ostrom is focused on developing high-quality carbon projects that have a positive impact on the environment, local communities and biodiversity. Ostrom is publicly listed on the TSX Venture Exchange (COO) and the Frankfurt Stock Exchange (9EA).
Please visit us at www.ostromclimate.com.
For more information regarding the Company, please contact:
Tej Virk
Ostrom Climate Solutions Inc.
322 Water St #400, Vancouver, BC V6B 1B6, Canada
Email: tej.virk@ostromclimate.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.
Cautionary Statement Regarding Forward Looking Statements
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE: Ostrom Climate Solutions Inc
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