SciDev Breaks Ground with First European PFAS Contracts Amid US Market Slowdown

Financial Snapshot Amid Market Headwinds

SciDev Ltd (ASX: SDV) has released its Q2 FY25 financial results, revealing a total revenue of A$23.8 million. This represents a 16% decline compared to the previous corresponding period, primarily driven by a seasonal slowdown in the US Oil & Gas sector compounded by uncertainty surrounding the recent US election. Despite this, the company maintained a positive cash flow from operations of A$0.9 million and ended the quarter with a healthy cash balance of A$10.9 million.

Underlying EBITDA stood at A$0.7 million for the quarter, reflecting both the market softness and ongoing strategic investments in SciDev’s Water Technologies business across Europe and North America. The half-year results showed revenue broadly in line with the prior year at A$49.9 million and a 6% increase in underlying EBITDA to A$3.4 million, underscoring operational resilience.

Strategic Expansion into European PFAS Market

A key highlight of the quarter was SciDev’s successful entry into the European PFAS treatment market, securing its first commercial contracts in Sweden and the UK. The contract with Swedish Hydro Solutions AB involves a containerised PFAS treatment system for landfill remediation, marking the first phase of a potentially multi-phase project. Shortly after quarter-end, SciDev also secured a contract with a UK blue-chip Oil & Gas customer for a similar PFAS treatment system.

These wins are significant as they validate SciDev’s proprietary FluorofIX™ and RegenIX™ technologies in a region where PFAS contamination is an escalating environmental and regulatory concern. The company also completed a successful pilot trial with a major Swedish aviation company, further strengthening its foothold in Europe.

Operational Momentum and Product Development

Beyond Europe, SciDev advanced its chemical services division with multiple successful field trials, including a CatChek™ trial with BPX that could expand the company’s footprint into a second operational basin. The company also progressed MaxiFlox® chemistry trials with mining clients in Western Australia, resulting in additional purchase orders.

Strategic investments continued with an 18-month extension of a PFAS treatment contract for a blue-chip mining client in Western Australia and mobilization of a water treatment plant for a major infrastructure project in Sydney, valued at A$5.6 million. These initiatives demonstrate SciDev’s commitment to scaling its operations and capturing growth opportunities in water-intensive industries globally.

Outlook and Market Positioning

CEO Sean Halpin expressed confidence in a stronger second half of FY25, anticipating market recovery in the US Oil & Gas sector and accelerated opportunities driven by tightening PFAS regulations. The European market entry is viewed as a springboard for broader water technology services in a sector projected to grow from US$15.37 billion to US$25.46 billion by 2031.

Looking ahead, SciDev aims to secure its first US water technologies contract, expand its mining sector presence internationally, and leverage growing awareness of PFAS as a critical environmental issue. The company’s strategic reinvestments and diversified product portfolio position it well to navigate near-term challenges and pursue sustainable long-term growth.