Capstone Green Energy ( NASDAQ: CGRN ) +20.3% in Monday's trading, bouncing off 52-week lows, after saying earlier that its distributor in Alaska signed a new 12-month, 600 KW energy-as-a-service rental contract with an unnamed local oil and gas company; financial terms were not disclosed.
Capstone ( CGRN ) said the unnamed company has established "a dominant acreage position" on the North Slope and is looking to reduce its environmental impact.
The company said it is "seeing strong customer demand across industries for its EaaS long-term rental services, which had 7 MW under contract in March 2021, 26 MW under contract in March 2022, and today contracts in excess of 35 MW."
Capstone ( CGRN ) said it is focused on growing its energy-as-a-service business "because it provides higher margins, more constant and predictable revenue streams, and allows for a more streamlined staffing model than a traditional industrial manufacturing company."
Capstone Green Energy's ( CGRN ) quarterly results were disappointing across the board with lower than expected sales, weak gross margins and elevated cash usage, and "bankruptcy might be in the cards," Henrik Alex writes in a bearish analysis newly published on Seeking Alpha .
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Capstone Green Energy surges on new 600 KW energy-as-a-service contract