The Fluence (ASX: FLC) share price is going nuts, it’s up 17.5% so far.
What is Fluence?
In 2017, water treatment providers Emefcy and RWL merged to create Fluence Corporation Ltd. As a combined company, Fluence is attempting to solve the world’s water issues through the use of its desalination technology. Fluence is aiming to become the global leader in both centralised and decentralised water and wastewater treatment.
What has happened with Fluence?
The company announced that it has achieved positive operating cashflow for the quarter to June 2020, which is what the company had been expecting.
The company’s cash balance at the end of the June 2020 quarter was approximately US$20 million, up from US$16.9 million at the end of the last quarter.
Fluence Managing Director and CEO Henry Charrabe said: “Streamlining our operations and focusing on timely collections from customers enabled us to turn our operating cashflow positive. Despite global challenges and the economic slowdown, the company is now in a stronger position”.
The company said it will provide another update at the end of July.
Fluence said it was EBITDA (click here to learn what EBITDA means) positive in the first quarter and that profitability is expected in FY20 and beyond. Now it has achieved positive cashflow.
Despite that, the Fluence share price is down 48% over the past six months. If you’ve been interested in the company for a while, this could be a turning point and now may be the time to invest. However, COVID-19 could still cause uncertainty for the company for the rest of the year.