Zefiro Methane Corp [Cboe Canada: ZEFI & Frankfurt: Y6B] has generated record consolidated revenues of USD 8.5 million, an approximate 10% increase from the quarter that ended on December 31, 2023, resulting in a gross profit of USD 2.7 million (approximate 31% gross profit margin).
Zefiro also generated adjusted earnings before interest, taxes, depreciation, and amortization of USD407,000.
The numbers are highly supportive of the company’s pioneering business strategy around high quality carbon credits generation. Zefiro said today is had generated record consolidated quarterly revenues and adjusted EBITDA for the quarter ended March 31, 2024.
“In just a matter of months, Zefiro’s comprehensive and fully integrated business model as an environmental services company has had a measurable impact on American communities, while also driving robust and scalable value for shareholders,” said Founder and Chief Executive Officer Talal Debs. “I believe these results signal to the market that Zefiro’s operations are sustainable and profitable, aligning quite well with investors’ objectives.”
Zefiro had zero revenue as of 31 March 2023 and is now looking at well over seven figures USD in gross profit. The company looks well-positioned to benefit from both private and public sources of capital focused on the issue of methane-producing industrial sites across several US states.
In a call with The Armchair Trader, CEO Debs said that the company had more than enough work to keep it busy in the eastern US without the need to look abroad for opportunities. The methane emissions issue in the US alone remains a huge and largely unaddressed environmental problem for the company to tackle.
High quality carbon credits
We believe one of the critical pieces of news ahead of these results was the company’s first listing on the American Carbon Registry. ACR is regarded as one of the leading global carbon credits programs, enhancing confidence in the integrity of carbon markets and pushing forward a wider culture of emissions reductions within the business and finance space.
The American Carbon Registry’s approach to program quality has earned approval to issue credits for use in regulated carbon markets, including the State of California’s Cap-and-Trade Program. This demonstrates that the credits Zefiro is issuing will be considered for the highest level registries.
- Zefiro Methane to partner with Fiùtur on carbon credit data
- Zefiro Methane completes Pennsylvania’s first well-plugging project under Jobs Act
- Zefiro Methane subsidiary buys stake in well plugging equipment specialist
Cleaning up methane problems in the US
Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land, and water sources directly impacted by methane leaks. The company has built a fully integrated ground operation driven by an innovative monetisation solution for the emerging methane abatement marketplace.
Methane remains the “low hanging fruit” in the battle against climate change, as it is up to 80 times worse for global warming than carbon emissions.
On February 28, Zefiro completed the 90-day integration of its acquisition of Appalachian Well Surveys. The acquisition of the decades-old wireline company was consummated by Zefiro’s consolidated subsidiary, Plants & Goodwin, and expands its fully integrated asset retirement services.
Zefiro also announced at the same time the completion of an environmental remediation project within the Cuyahoga Valley National Park near Akron, Ohio. Zefiro and its partners were tasked by the National Park Service to ensure that the unplugged sites would not develop into environmental hazards that could threaten the health of the park’s staff and visitors.
This month Zefiro announced the opening of a new operations facility in Buckhannon, West Virginia. The facility will allow Zefiro to expand their abandoned oil and gas well plugging operations by strategically aligning its goal of efficiently deploying portions of the USD 29.2 million Phase 1 Bipartisan Infrastructure Law funds in West Virginia. There are over 6,300 orphaned oil and gas wells in West Virginia.
