In a short and to-the-point press release, UGE International Ltd. (TSX-V:UGE)(OTCQB:UGEIF) told shareholders that it has been awarded a portfolio of solar projects that equate to more than $11 million in value, representing the biggest U.S. contract in the history of the Toronto-based company. The name of the client was kept anonymous; only stating that it was a U.S. customer.
The contracts include five rooftop solar systems, for which UGE will be responsible for the development, engineering and deployment. The projects will commence this year and take most of 2019 to complete, according to the company.
It's not discernible how the contact will show up on UGE's books in the upcoming quarters, but it's a solid addition nonetheless. During the first quarter, ended March 31, 2018, UGE reported revenue of $6.1 million U.S. Management disclosed at that time (May 15) that the backlog of orders was large, totaling $41.2 million U.S., with $11.3 million U.S. in new contracts awarded during Q1.
Like many other solar companies, though, the markets have not rallied behind UGE in quite some time. In May 2017, Toronto-listed shares of UGE were as high as 80 cents before going into a tailspin to as low as 21 cents in April.
A bounce to 42 cents in May ensued, followed by another slide to 23.5 cents this month. The stock is up 11.5% to 29 cents with 30 minutes left in the trading day on Monday, but on just 62,000 in volume. U.S.-listed shares are performing similarly, gaining 12.1% to 22.3 cents as the day winds towards the closing bell.
