NSFDF - Earnings call transcript Q1 2022 | NXT Energy Solutions Inc.

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Operator

Good day, ladies and gentlemen. My name is Omar, and I will be your conference operator today. At this time, I would like to welcome everyone to the NXT Energy Solutions 2022 First Quarter Operating and Financial Results Conference Call. All participants will be in listen-only mode for the first part of the conference call with the ability to ask questions after the presentation by the company. [Operator Instructions] I would now like to turn the meeting over to Mr. CEO Energy and President Liszicasz, of Solutions. NXT George go ahead, Mr. Please Liszicasz.

George Liszicasz

and Solutions' Hung, Tippu, Director highlights and very Americas; of release of Finance joining will Officer; Interpretation following purpose first for traveling Energy George financial Director Liszicasz. much, of the today's Asia Mohammad Saqib, This you of me call conference quarter thank of operating and Project is Geosciences for us first results. open. Xiang Development; the The The of results and the Dr. Omar. NXT And for of today's Africa, Thank Head President is Enrique call everyone, is Engineer. Financial our Welcome, you for Eugene and East call. XXXX operating Vice business. quarter of be Research Chief update And NXT's you, and Geosciences – is for Middle Gui, on Rashid joining XXXX to and conference for financial thank discuss Director Woychyshyn, briefly

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

Now over the Eugene financial for review. to

Eugene Woychyshyn

Thank you, George.

business on management on XX EDGAR. SEDAR's optimize will shortly financial analysis website XXXX available mentioned, to discussion quarter on be and continuing perspective, control focus supporting efforts financial statements, George the As May execution and on our and remained and development of From first a were filed costs. the

investments in million. $XXX,XXX the used to Our follows. and also approximately of XX, $X.XX received $XXX,XXX payments April XXXX received was financial results further $X.XX during a Accounts of and There quarter. is was and as million during March were receivable working net cash the the capital first of approximately Operating May. revenue $XXX,XXX quarter. for were Cash activity $XXX,XXX no at received anticipated in quarter. were short-term be

a approximately $XX,XXX taxes. minimal per were first For This million compensation in $X.XX stock-based were $XX,XXX $XXX,XXX net to the the reduced to included for increased expenses and in the expenses outstanding. increased shortly. higher or lower benefits be on expenses and key expenses X% or non-cash loss compensation consulting vacation consultant investments NXT financial carbon and the or including and $XX,XXX X% $XXX,XXX quarter quarter Business compared This million and To million costs quarter quarter related due net to amortization costs or decreased $X.XX million, and development in of mostly following $X.XX operating due increased public both Board recorded quarters per survey XXXX comparative XXXX approximately on expenses capital Salaries, XXXX or of and costs. to of in stock-based business share. development RSU average the approximately We of outstanding premises Total year of $X.XX million to overhead net $X.XX first were shares to $XX,XXX points. plan. as XX.X million, a quarter, weighted $X.XX compares XXXX receivables and the the $X.XX loss share, and short-term working or company approximately versus common $X.X General of XXXX reasons. higher professional received for another first charges we $XX,XXX hand, accounts fees expected of of QX administrative higher fees. balance accrued expenses so expenses. costs to with far QX due decreased some administrative travel with received this by ended with costs X% as X%, was summarize cash million building based

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

George Liszicasz

Thanks, Eugene.

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

which Our last pleased weeks six ago, today. are updates ago, last to further provide but call just was six we weeks conference our call, conference was

As period the productive said Eugene the a the were QX, remained company there on no mentioned, be That quarter survey opportunities marketplace fronts. I multiple of given and technology believe very offers, industry in for company will revenue our the generating that exist this although in today. revenues the benefits significant new

core as On but business commodity global progress and Asia development are Consequently, and not business with customers. our continue engagement activity to of witnessing resilient survey Africa, well. remain continues economic in level to well, East in we as opportunities Middle prices South in America, SFD the rebound. within hydrocarbon are areas to side, only the expected an focus our increased

Our revenue create objective to a sustainable flow. always been has

the materialize last pleased commercial feasibility highly have opportunities call, contract NXT execution. these that that technical report multiple remains steady To company Given opportunities contract will state current a flow. of three on from collective company to The confident working opportunities, focused the establish am that and advanced efforts Since the end, cash stage. soon of will are our on is we to Asia. in I our

is stages securing Regarding Africa in NXT business development, final of contracts. the

the preparing projects. major with NOCs on business international the working continent the XXXX are XXXX and for other we Middle advancing As development. and we priority, business we African survey remains SFD speak, our explorers. are XXXX Naturally, and our and East

recent progress significant in in East months. We Middle have the made

As the on capitalize you Middle time remember, is its have invested we investment. opportunities. substantial over to East finally company the position and The years effort may in in

further geothermal development provide programs. updated. in We our there's update, updates will no change as Continuing geothermal we're with

Just for to II sensor both Phase Phase successfully recap, IRAP currently survey SFD-GT fruitful consideration. We pursuing is NRC opportunities submission I of preparing that the abroad. effort a program development completed SFD-GT will company the be in and domestically and believe our

We existing on report opportunities clients. our Latin or for with clients our an attention increased in new progress to interest project. new Turning repeat can also and data sale continued existing and America on contract

are America. In geothermal business Latin summary, opportunities are step negotiations the We hydrocarbon continue and current SFD repeat a optimistic new progress. survey to to and in

Additionally, we continue companies in discussions to our with with advancement made SFD-GT geothermal its and services. multiple for technology be

support of for your for Board of for Directors their of of and NXT. support. On best operator, you you. to us all of thank your of behalf entire continued the NXT the a questions. your Omar? our wish thank our and to always, ask As want now shareholders team, continuing take We health families. the open the few I and you Thank line Omar, to I

Operator

you. Thank

Thank telephone from lines. take now much. very you Instructions] questions will the [Operator We

from is ahead. Asset [indiscernible] question first go The Management. Please Collective

Unidentified Analyst

Phase the dollar the value you NRC talk center as achieve, what you convince to around the assume, what development, involves of about as time both dollar received, progress? financed hope out you're of them value II far was I the Can two? to and kind Ottawa. then of think, On by able and I to what you And fund whether number

George Liszicasz

yes, Bob, for your thank So, you, questions.

SFD-GT You projects, right? the are geothermal talking or about

Unidentified Analyst

Yes.

George Liszicasz

in first are of gas continuation phase that And as not only prototype execute is to first the the can oil also basically well. program. second phase we we but planning the the to The so survey, in we land-based the are going before vehicle, that that is test and survey it do flight developing

excellent consultants. part So been – have it development. to the They response talking the we like future our would to we continue that from the second them. have finance future And of received is

will soon you know are – yet possible. don't we know number as the We let we as and exact

see capital, dealing the bring exclusively the we clients. and to However, that would of would if project with of informed involve NXT a we geothermal to a of which accelerate subdivision infusion can creation the development with also them were amount like activities experts NXT by the some in to basically significant we and

Unidentified Analyst

Thank you.

Operator

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

Michael Mork

Hi, today, had high George multi-year $XXX. a et new Oil and Eugene, cetera.

exploration doing? now. if budgets you – that people gas what just are marketing to oil is, and wondering what so to my guess plan their their of conferences oil expedite it have Just any And your lot out what you're companies game increasing and you know exploration Are you how are there can a show and gas is that right processes? people these just going

George Liszicasz

first international Right various did question. is XX we your request at quarter about for of the well. companies in as Thank presentations you, Mike, at and companies NXT, what the happening probably now, national

planning right to are survey, first the doing survey. We now the decide

We then a And requested Asia of parties, are that and go to also to be country, and independents. seven the the couple there planning different East including talk to national Middle so in face-to-face companies and have entire companies meeting.

technical or the one And going preceded commercial now these a discuss every liability presentation, are the a we commercial of of there by acceptance. meetings to Now were the contracts. aspects

I right now. we path the right think that are on So

good We and and being five parties, news, and extensively America. companies data are Middle in are sought some East very received as interested We well in our mentioned, recently, sale. Africa for Asia existing I as that South

will speak maybe that exploration year. you are are to more the And more it and the So this and for oil this time just be recognizing stable, least that the a their to to I at oil sustained sustained like that is increase prices fact budgets. that think produce mentioned companies

hope that your I answers So question.

Michael Mork

good. very That's did. it Yes,

Thank are guys You that's and busy good. you.

George Liszicasz

Very busy actually.

Operator

Thank question go is Tucker And Advisors. next the All Instructions] Andersen, Above from ahead. Please you. [Operator

Tucker Andersen

Hello, George.

George Liszicasz

Hi, you? Tucker. How are

Tucker Andersen

these Fine times. you family you also all I us have health good that to of your in wish and and trouble hope as

– some is is these sign Because contracts, that you we're Or of lot beneficial is that that that can to And the because likelihood much you over of what per or the on tie market, to Russian I fact and full – sell people going thing lockdowns, And capital. working to you question going say, maybe really up means new be on do things a oil be when restricted raise you some get And whole that, online. I'm the you for worried that not to until have is environment, question the as and do their a and you, in soon at which getting like like basically, follows come about capital. they money get of have upfront last weren't as of companies one. that you price looking think areas to are plate oil know, your which enough have losing you should just And stuff supply these concern payments chain to is sort to is contracts because to that. need the but financing measure the you drilling I ability Sort that they're their – the of continue is and and need plans logistics think storage really payments? my as to were are my because your this to fruition? of some of upfront a se, they difficult going to new clearly more their you and sort of you pipelines are that to be full come

George Liszicasz

a very whereby course. three one you – the question, The the schedule, question, two first your is largest payment largest Thank much a connected we And relevant standard Tucker. actually – it's is receive payments. with upfront with very opportunities connected for of

one the second on XX gas know NOCs. which is the planet, do and That the third of one And The largest payment is not we the a is yet. largest oil schedule. one, days company

– I do So given But and and is my we we personal have is not that that to presentations be question. more I to up on. – able not feeling just manage so – have, be we that answer But feeling the – gone have through the we cannot my opinion. we personal are received. to That's until air more very we in revenues shortly going are opportunities and going are

Tucker Andersen

to say, that more just I meals hope and that environment becomes financial as cash lot of good luck. get are of luck market eat because I Well, And good point, and in. on at But we're do much think plate. the a crucial I you your this managing those

George Liszicasz

That's for the is idea. time contracts sure. This the for

Tucker Andersen

George. Thanks,

George Liszicasz

Thank you very much Tucker.

Operator

go The Asset is you. [indiscernible] Thank question ahead. next Collective Management. from Please

Unidentified Analyst

Hi.

into put be the of piece the contracts? payment with typically context be the upfront on would dollar with or quarter up third? standard amount What follow typical for to terms a one the Just to your payment upfront of

George Liszicasz

can to you that. speak Eugene, Maybe

Eugene Woychyshyn

Okay.

wheels before fly essence, get back. location leave we – well we've we once to which our for asking in come start start covers costs we, have survey the cost which we're to to historically, ideally effectively [indiscernible] So, before the the up, survey, is for those what of are range we're ground, -- flying as we or And in the then the survey, fee, payment covers as the that's to received in location. that country significant XX% XX% part our to in first surveys and the

Unidentified Analyst

Thank you. Good.

George Liszicasz

And the rest gravy. is

Operator

proceed. name Please [Operator you. participant. The Thank a and is please your state your from Instructions] name next question and company

Unidentified Analyst

question Adelman this will asked like that of on behalf be we speaking lost the now. when is air and David in apologies if [ph] Nigeria? in voice his he's The earlier ask to was he'd as I'm right

George Liszicasz

can't answer. that Well, be will to I directly another not shortly surveys. better an to NOC where it is but And large to a but conduct going answer very it's we're country, question, off-route opportunity there to that – Nigeria, wants be specifically, potentially going

say So don't hope wrong I'm -- shouldn't NXT hoping in if – know, me July. something, be but or that will or something would correct – surveying I I'm like that Eugene. I But the I

Unidentified Analyst

you. Thank

George Liszicasz

you. Thank

Operator

There further back to this you. at I Thank to turn the are questions Please Mr. Liszicasz. ahead. registered would George time. like go now no meeting

George Liszicasz

David love mention him. his spoke so of conference person much. And our recovery, you to you that would to who on thank our I like call. and all wish behalf in participate for Thank to I you the

Operator

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

NXT Energy Solutions (NSFDF) 17 May 222022 Q1 Earnings call transcript