NXT Energy Solutions (NSFDF) 4 Apr 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen. My name is Patrick, and I will be your conference operator today. At this time, I would like to welcome everyone to the NXT Energy Solutions 2021 Fourth Quarter Operating and Financial Results Conference Call. [Operator Instructions] I would now like to turn the meeting over to Mr. George Liszicasz, President and CEO of NXT Energy Solutions. ahead. go Please

Engineer; Liszicasz, of of Welcome, and and of Director for Patrick. for year-end Americas; interpretation Geosciences you, for release Geosciences Gui, and quarter XXXX Vice Research Head Africa, discuss is everyone East. and call Project is of Tippu, of Development; today and Thank Enrique Eugene Hung, results. Director Financial is fourth Energy and Officer; the briefly and Solutions us for Woychyshyn, Rashi George This Mohammad call. NXT the results highlights of of and joining today's Director Middle Saqib, XXXX financial of year-end joining to me operating conference operating NXT's the Finance you, President conference Asia thank and Chief The fourth and call financial purpose Xiang quarter and Dr.

up and dollars today's all and this are financial operating the available for we on dollar and update, amounts line are year-end discussed All will published website, financial XX, questions. available March forth soon XXXX website the were non-GAAP be website. on our subject measures are for unless MD&A conference otherwise fourth complete in call the and results note in The Canadian Please regarding company QX statements and on stated. consolidated March reader's call and and and EDGAR's SEDAR's year-end NXT's set issued to will forward-looking Following press XXXX our advisory, XX. information by made management open in statements release during

financial over Now review. the for to Eugene

George. you, Thank

perspective, fourth costs. SEDAR's be focus development and information management remained business optimize supporting March and website XXXX execution report and EDGAR. financial our were the on the shortly and quarter mentioned, to statements, analysis control on the year-end annual on a will and discussion of on effort XX From filed continuing available and George financial As

received short-term and cash accounts at in full quarter was as and and on the the follows. $X.XX for capital XX, $X.XX Our XXXX, working results for investments of of Cash net February. provided December Company the million Revenue outstanding were financial year. year million $XX,XXX during were US$XXX,XXX million. payments $X.XX million. activities $X.XX Operating used receivable was

For the net $X.XX the $X.XX compares recorded fourth or NXT million average per based of of common per a fourth shares approximately on XXXX of quarter, share to million loss quarter or loss million share. a weighted for This $X.XX outstanding. net $X.XX XX.X

Total million overhead $XXX,XXX employee the of due preexisting ended $X.XX the expenses to US$XXX,XXX in RSU purchase due for cash by expenses. is to travel Salaries, capital compensation X% $XX,XXX benefits XXXX. $X.XX stock-based in data amortization For for wage charges resumed the shortly. received XXXX decreased decreased expected $X.XX to on outstanding $X.XX minimal Rent financial balance due related emergency most professional costs. related year. XXXX the the fees $XXX,XXX or administrative decrease quarter the in business non-cash development and and This of with the million development and increased Premises the sale, versus the vacation a were expenses The benefiting $XX,XXX compensation There to of Subsidy decreased expenses fourth due And were offset included increased by full for expense, February recognizing $X.XX professional out company approximately investments and to XXXX the XXXX to expenses consulting increased G&A XXXX, decreased professional costs amortization higher from Board of of for $XX,XXX in quarter for and and survey Total offset benefits to for professional increased to NXT of most to expenses $X.XX to million year restrictions Board to million expense. key XX% or remaining recorded SFD $X.XX short-term of million G&A XXXX working $XX,XXX compensation based This stock-based to common to outstanding. Salaries, non-cash million fees, with continued receivables costs pandemic. were were and rate, included Emergency due expenses to $XX,XXX operating quarter wage and in million, year. some XXXX public stock-based travel the vacation we and expenses including RSU per plan $XX,XXX share share. fees received and $X.XX per the XXXX. lower was the expenses COVID-XX reasons. as expenses. $X.XX subsidy the October the full fully as emergency development Canada We or or December Rent XXXX for be in of operating following costs due XX% lower net the shares costs to $XXX,XXX quarter in compensation early XX.X program for XXXX the and with receipt on loss approximately Subsidy COVID-XX points. million to employee share lower XXXX. charges pandemic lower the due reasons. versus or weighted increased in the respect fees. or lower Summarize expenses. to compared and consulting overhead a fourth and US$XXX,XXX of due ended including And share XXXX company phasing costs. by travel compared a XXXX the X% hand of company, by Emergency XXXX. average Business administrative Canada $XX,XXX decreased expenses survey the XXXX premises plan public million, Business Canada following during compares decreased purchase of $XXX,XXX in net loss net of of $X.XX for costs subsidy, Canada $XX,XXX Stock-based This the

now Our to main of back update focus to continues I our further the the forward discuss opportunities. George like would hand commercial on to call to and business be execution over plans. NXT's

you, Thank Eugene.

to sincere time. my want healthy at is this hope stay and convey everybody to that I well continues First,

a there technology Eugene survey new and As given what capable believe the although did and $XXX,XXX Board company company in still QX, of on period significant the to the were pleased revenues exploration, exploration years opportunities expectations but We that year, for exist the a international this our improvement was multiple XXXX, Gerry very productive in in almost of the mentioned, production. Gerry development fronts. announce marketplace summer earlier said, of Directors. for we remained gas below brings of Sheehan offers the today. is of our That and of the in no our million generated XX energy being experience knowledge revenue Veteran, the joined that quarter $X.XX benefits from generating, the were company working which generate in

the he contributing his has an integral of moment, Gerry the For become expertise company. part arrived, to our team

involved are his has to the aboard. our Gerry and network in joined actively business in our happy sharing opportunities. expertise Since We to further development him industry been Board, business he definitely have

for that. very are grateful We

of and focus developments, both into efforts and the great confidence development collective our throughout which of opportunities South core future gas efforts had substantially gives success, the today winter strategic will Business Africa, Asia progressed materialize short-term deal and long-term. in have regions in America. that busy front very Regarding of XXXX, to me start our a pursuing a number NXT oil a

one XXXX, of customers. its prices commodity payments to existing activities. the has is of preexisting SFD rebounded, of received has US$XXX,XXX US$X.X confident the in and completed in have with XXXX. sale to As in expected witnessing long-term be NXT XX, opportunities exploration we increased an of as Asia. Central near-term QX level delivery company remaining received SFD the QX are February to data and working on in With business to data opportunities. NXT December approach XXXX, of realize two remains sales, respect in million highly our NXT 'XX, the

company significant financed a production fully land is these and of E&P One with base.

their one SFD is other is currently financing junior a an that program, includes survey. securing for upstream necessary The the E&P which

surveys survey to other multiple technical discussions projects, bids both our discussion for Asian we in stage. commercial submitted SFD opportunities, with three respect beyond to SFD the these have of have We companies. enterprises With are advanced for opportunities

work Additional progress suffice to but say, is study is required, being made.

information to delivers continents believe believe continue recognize mitigate basins the upper solutions will airplane and we overall We is development. Akobo. time our to cultimate to an in in in risk, PE that NOC Pursuant will we Daere manner. priority survey have shareholders effort undertaking our hydrocarbon exporters now in of confidence, survey be Nigeria's NXT most will significant of XXXX. one of sub-Saharan that frontier opportunities into new And sustained 'XX -- level this for to and capacity. will XXXX. our we into in continue. projects of to and updating will We entirely increased for our engaged Mr. as end, I’m value increased Nigeria leveraging the airborne continue meet with extended Energy, SFD projected further to I update program our an expanded we experience the The and survey. cost-effective is the SFD in pleased the soon geothermal this, that GMD environmentally-friendly attributed the order utilization efforts Underscoring success Nigerian business and a will important opportunities Africa the countries. of partner other as Africa provide of warranted. XXXX lead as remain business exploration. international exploration completed maintenance We the in

the started required other and aircraft obtaining process foreign that export-import are In surveys. for appropriate are in addition, on have we also certification of paperwork essential services the

keep progress. geothermal you our with informed We development will Continuing the update. of

and advisory the services announced, technology from Industrial funding to support and Research development which utilized previously program was received Canada's Research applications. research NXT SFD the As of for the Assistance Council geothermal of National

prospective. advisers toward successfully IRAP program advance SFD GT Canada NXT completed a technology. development SFD NRC is a we continue GT and SFD for SFD considering preparing as Phase the submission to in X actively using GT opportunities of currently NRC's attaining II for of and consideration. efforts business abroad, commercialization to contributions company of their grateful sensor number are pursuing We our are Phase clients their GT of to has all NXT potential The for and our

our let America projects. attention Now Latin us turn to

Houston-based to is provider large of corporate regulatory working the NOCs with continue NXT throughout of three objective of frontier holds in portfolio be develop geophysical within in be the America. evaluation exploration which also and/or We production. service used discussions with a enhance geophysical company respect alignment authority Latin that Latin export to with a contracts the banks American countries stated programs. would government data to regions, with increasing funded be would SFD these and in service

XX. GDP. discussions this of friendly We within survey to summary, in are a America. progress and that the optimistic notice the Latin with respect and company attractive has has new but in not opportunities South to Brazil, the this only current step and core opportunities help received negotiations Brazilian industry America a elsewhere. of application environment to NXT Brazilian is number in its NXT. hand, patent are patent for been partners areas repeat the opportunity region. Asia With in believes compelling total of over granted, in focus SFD continue bringing accelerate contributing The its country and will extensive hold of which its with Brazil an oil market the gas technology Africa, is for potential a NXT opportunity XX% an well, hydrocarbon patents SFD In to countries to has the

prove than to programs in the has is GT did $X seize the these us. and confident in is We million we Additionally, rest we before. of hoped for, clear have made in exploration companies NXT the understand discussions geothermal of year that for we fruitful. Today, SFD has being which the started be of now front opportunities year should many We as reactivated. are with to but our see suspended more that year technology revenue, not million continue multiple $X signs progress with we the services.

As at best wish always, our to behalf health thank you, you. On our for continued thank I the Board and Thank all your team support. of want for to of you to their Directors, Patrick. the shareholders entire to of Back your NXT, We you families. patience. and

Capital Mork is The Instructions] Mork go question [Operator ahead. first from from Michael Management. Please

It's Hi. Mike.

times. like amplify to back wanted a -- it's Just timing can contract you Nigeria, the pushed several size been know and it potential seems little on bit if because African in possibly the the potential contract

you if get a wondered little can Just closer there.

Yes. is Rashid. this Mike,

this project within working on on approvals -- work are on some [indiscernible] based project -- So, we work And made we this of we years the And yes, towards, also done is a some where XXXX based large area that’s in two follow-up seeing like potential which are they and this because on towards year X in results -- there surveyed a back we next project are year. and [indiscernible] contract recall, are will if working and you previously be based based we paper Judd, the we a are. XXXX, was and recommendations. on several so back

next year couple the are those recommendation in selecting anticipating existing a they So, add are And and projects we are here. will for of year, data. then we following this years of to portion value for this survey looking also

-- I better as We would corporation like to like that NNPC add history. to Rashid. would you, a know add worldwide. I project wants to itself Mike, the thank

are implemented so so on have a result and give breakdowns the more previously protocols that of as So detail, information requires forth and that, as on service that survey, the some provider required. was much the NXT budgets, a there the that been to

we main are was the very all we get now [indiscernible]. But the, and have that met soon that think, going reason. to very contract a we I positive requirements, going So are

Okay. That sounds good.

your real one a was are some clients are quick oil question. prices you the weren't marketing? getting barrel, on you anything -- price doing different who With your $XXX a that when Just barrel, interested. $XX contacted of Or by follow-on over old

Now activity are might or be clients any new seen $XXX, with you it's with now that have old the higher a interested interested, clients more price?

in for can They give Mike, in I are this and government. an Latin you the the business is example units or Enrique Well, their unit Hung. E&P bumping both exploration America. budget,

looks So Latin America good.

in fronts those countries. three have We

can XXXX latest Latin we in in activities the We the America. did are of also be Asia with linking international work has that relationship some that December in strong reflected

we are confident. And big is push yes, very a us. So, oil the price for

are countries to production. Some planning their the of duplicate

So, there's for a follow. it's path long-term a and it to looks like good us

Thank Okay. you.

Mike. you, Thank

the body number would the technology look revival, think have the also company right, utilize a or worked that we if extensively. we countries with contacted all it situation, by exploration. it's there overall, clients in the -- of I in representatives been that to at in and is you And a that national before regulatory like

sign. positive hopeful and that that. they So, if us, confident on that's we very are to very, And come a very good

[Operator company. Instructions] Please your is from next question [indiscernible]. The state Thomas

Your line is open.

is now, Open Hey. Mike's of question. [indiscernible]. from wanted okay. I'd kind of off This play Thomas to

moving really the stuff It's off, front. that on Asian to and great exciting First is along. African hear

excited really I’m So, for XXXX.

geothermal I'm you pardon the talking ask think a that take hydrocarbon I remain Thanks. to the get bit happy to offline. George, Thanks wonder technology. the prove or think approach if could ignorance, the about have exploration. little involved for do this to for So market I just people much disruptor, the know just were we’ve you And the I got about about investors And that you our is the years, plus geothermal about wanted marketing wonder, this answer. I Either people fundamental other the marketing IP. articles time it? but If wondering I probably we there? and works, the is been confident of I about. know changing go reading XX all And ignorantly, in what I’m question approach. don't because over you about strategy kind And really feeling this have that it. mentioned just so that why coming game fairly I word out that the major I'm at our the think hydrocarbon know don't NXT just thing how to I

changed and How you We in presentations you about much literally. of XX for to is Thank presentation Usually, be a itself. corporation I continent companies, one required support. much it and and is technical Thomas, being everything the the to a to start of they technical think XXX technology? very just slides. them. very have technology thank acceptance with given a Each a the of them the number on companies. much, presentation every like was terms And of multibillion-dollar our would your I

So, it on, it we compacted back came the to universities positive. We We presentation, continent. XX. the buy throughout gave it institutions, was so downloaded and and

resistance that technologies relates It's be that but to related it boundary that have respect down we a technology now that SFD, not point with it of and of now clearly part the can of number think breaking I to shows there SFD. published have the technology. So, reached the to Also, been built. is SFD, are the that

So that's one part.

now the opportunity about are is boots everywhere on that other believe there people, where being is wherever right same bring that that countries the have anything The there in we And contract. they And X are anybody that so trying salespersons right? So, to get pay NXT ground. number Asia, part we of and the the significant don't equally in we represented, Africa, ground is on a until exists. we

And are contract step we hopefully, So, to can be and get final super I that barrier will together majors to a going break work on offshore. shortly next so that we going on the to include will be, very think the with onshore, going that's them.

goal NXT well are actually, will to works. will So, I’m you how looking that the they very that be it see truth, to and technology of ultimate that this we tell confident the forward objective

George. I it. appreciate Thanks, Okay.

ahead. Management. The you. from is Peter go question Mork next Thank from Mork Capital Please

a the George, specifically but Thomas' And, again. related question on on I geothermal. just little update the to for marketing, bit to Thanks follow-up guys. the Hey, want

studies case these your You on website. guys have all great

work side? how census various the there to demonstration down hydrocarbon plans over the go And do time years. was you talked how ultimately, I frame guys of how built? like for wondering, viewing are are on geothermal a You that deals then over a any the Thanks. insights were they you about that? And what to -- pack? any just And a great

Hi, the Peter. very hear very I you understand couldn't Thank question. I it your much first well. part, didn't for

… can somebody So,

Marketing̣.

conduits Right in mean on countries Not three I -- in and interested SFD about subsurface. are that have At and identify high companies to people all SFD II trying using the now, so geothermal projects who marketing, of two GT. permeability surveys the so using not the on would forth. projects to to and IRAP, the include the same technology, finance universities, we development so time, move Phase with this are the technology that and we fabrications

As small are know, company. you we a

a So, fabrication and prototype not create it only that also there from want is are to And technology the we technology but methods geothermal benefit from, the will further will to requirement itself. want phase. that number to the do SFD a review we technology and of and need that a the

day, So, And finance a with. they that our companies goal activities would to can work is or who geothermal company every that the also now project we like is there clients. another their does with SFD us come financing existing other use

are next forward. by quite and the I'm QX, in we or to couple projects have confident going undertaken that So, months of move

state question next is David Thank [indiscernible]. company. you. your The from Please

is line Your open.

that the will assumes because up rent, value long which it to obviously name that there. And impact impact get Where I'm being -- David -- keep can also seem we money how I our you My that getting take had is the a going [indiscernible]. that? we're hang in is us We've to do that it? several shareholder burn shareholder. remember that contracts buns

Thank you, David. Eugene. It's

explained in on generating are be as commercial And we're confident that's going short-term. we George our our again, had So, where from earlier, the opportunities. cash we to -- are

a time I Okay. but ago. it for Nigeria your That's was I couldn't to happen takes was hear to guys question know answer. long supposed long impress? it a And you earlier, asked how

clear. or Was that that for sorry, wasn't Brazil --

Nigeria. For

hurdles. the once but are, short-term, Nigeria, through more explained George as we near a in few we For get

you. Thank Okay.

David. you, Thank

Thank you. over to like turn I This the back concludes to Mr. would question-and-answer Liszicasz. meeting session. the

the participating be Thank for And business. your everybody Investors much our in very Call. next support. to for Conference call hope going that you is again you Thank I

you ended. Thank you. this your time, The Please participation. conference now and we has your disconnect lines for thank at