The world’s largest Caterpillar dealer, Finning International, has reported record September quarter earnings per share performance as it revealed plans to roll out the use of low-carbon fuels, including compressed natural gas (CNG), renewable natural gas (RNG) and hydrogen.
In the most recent three-month period, the company reported earnings per share of C$0.61/share ($0.49/share) – a record – while revenue of C$1.9 billion and net revenue of C$1.7 billion were up 23% and 21%, year-on-year, respectively, driven by stronger new equipment sales in South America and the UK & Ireland and product support revenue growth in all regions.
In September, the company acquired a 54.5% controlling ownership interest in Compression Technology Corporation (ComTech) through its subsidiary, 4Refuel, to expand its fuelling capabilities beyond diesel, while allowing Finning to support customers through their energy transition, starting with CNG and RNG, and eventually hydrogen.
ComTech, in announcing this investment, said the partnership would help it scale into “gas-as-a-service, achieve our vision and advance our strategic position in the market”.
Cash consideration for the acquisition was C$25 million, of which C$20 million is to support future growth.
“ComTech provides 4Refuel with the capability to be a leading provider of turnkey, low-carbon energy solutions,” Finning said in its results. “It expands our fuelling capabilities beyond diesel and allows us to support our customers’ energy transition journey, starting with solutions for CNG and RNG. Our investment in ComTech leverages 4Refuel’s leading mobile on-site refuelling platform to enable customers to reduce their emissions and improve productivity.”
Scott Thomson, President and CEO of Finning International, added: “Natural gas, hydrogen and electrification are becoming an increasingly important aspect of our business as our customers are progressing towards their long-term goals of achieving net zero greenhouse gas emissions. With Caterpillar accelerating the development of battery-powered mining equipment, as well as natural gas blending and fully hydrogen-capable power solutions, we are excited about future opportunities to help our customers meet their goals and utilise sustainable energy sources.”
Thomson said the company planned to start using natural gas to power a portion of 4Refuel and Finning service vehicle fleets in 2022, which will help the company achieve its own greenhouse gas emission reduction target.