Here’s why the SciDev (ASX:SDV) share price has exploded today

Scidev Ltd (ASX: SDV) today published a quarterly report which builds on steady progress over the past two years. Accordingly, the SciDev share price has surged up 10.2% to 75 cents at the time of writing.

The company develops chemistries and engineering solutions to help clients with a range of operational issues associated with water. For instance, it develops coagulants and flocculants to treat wastewater. Moreover, it has a proprietary system to provide real-time monitoring of solid-liquid separation in mineral processing. Furthermore, it also produces products to recycle and minimise the use of oilfield waters. 

The headline of the quarterly report is a record $9.4 million in sales, which is likely the issue that drove the share price up. This includes $4.6 million in sales during September alone. 

SciDev performance highlights

Strong performance in the quarter was reflected across all sectors, including mining & mineral processing (32%), oil & gas (32%), construction & infrastructure (29%), and water & wastewater (7%). Specifically, revenue was strong in oil & gas as a result of improved drilling activity in the US shale sector. In addition, SciDev conducted direct work with several key customers, adding to revenue strength.

In addition, the company added the Shell Oil Company as an R&D partner for new technology development focussed on gas to liquid solvents. Critical to this project was the addition of a new PhD qualified R&D manager to the team, seconded to Shell, to develop new applications for this type of chemistry.

 Existing business in the mining sector continued. In addition, the contribution from the infrastructure sector also continued to grow as the company expands further. The SciDev share price has been rising gradually over the past 6 months in response to regular announcements of new contracts and work. 

What’s the future for the SciDev share price?

The company has a strong business development pipeline with field qualifications under way across all sectors. This includes plans to expand further into construction, and new services in oilfields and mining. In particular, companies in the mining sector have invited SciDev to participate in several competitive tenders. 

Within water and wastewater the company continues to participate in a major national tender. Its ability to produce though its plant in Sydney delivers security of supply, which is an attractive proposition.

Reflecting on Q1 FY2021, SciDev chief executive officer Lewis Utting said:

The September quarter business performance was outstanding and sets the scene for a strong FY2021. After a COVID-19 impacted June quarter, our growth across all verticals in the September quarter was exceptionally pleasing… We look forward to continuing to deliver on our range of growth opportunities over the coming quarters.

The SciDev share price has risen by 17% over the past 6 months. In the past 5 days of trading alone, it is up by 12.78%.