Dynetek: Momentum in CNG

9 November 2004

Dynetek Industries, a leading manufacturer of fuel storage cylinders and systems for CNG (compressed natural gas) and hydrogen, is on a bit of a roll. The success of a key component supplier (in this case, gas storage) is a good indication of momentum in a particular sector (in this case, CNG). Revenue has increased 26% over the same period last year, it has a $10+ million order backlog, and has now had positive EBITDA (earnings before interest, taxes, etc.) for three quarters, although it still is posting a net loss.

Increasing sales of CNG cylinders and systems to bus and trucking companies in Europe and Southern California are playing a major role in its current success. Just last week, the company announced complete CNG system orders worth some $2.5 million from two major bus manufacturers in Europe.

Dynetek also delivered hydrogen storage systems to Ford, Daimler Chrysler, Ballard Power, Hyundai, Nissan and Texaco Ovonics Hydrogen Systems. Dynetek provides products for fuel cell applications, fuel cell hybrid applications, hydrogen fueled internal combustion engines (H₂ICE), hydrogen rotary engines and for metal hydrides. Dynetek is working with 11 different OEMs on 15 confidential development programs.

That said, Dynetek’s short- to medium term financial health is going to depend on continued growth in the CNG market, especially in Europe and the US, but also in Asia.