Leading asset management provider Universal mCloud (TSXV:MCLD) (OTCQB:MCLDF) made another exciting announcement today. The Vancouver-based company has entered into a commercial agreement to provide AssetCare performance analytics to Longyuan Wind Power Co., Ltd.
As per the agreement, mCloud’s AI-powered AssetCare platform will optimize the performance of 35 GE wind turbines at Longyuan’s Pu Fa Wind Farm in China.
By analyzing historical performance data, AssetCare can evaluate elements of the wind turbines’ pitch systems including motor temperature, position, current, and torque, as well as performance variables such as wind speed, power output, and turbine mode. It will then identify control system issues or excessive rotational force that has the potential to reduce energy production and/or turbine longevity if left unaddressed.
Universal mCloud projects that the deployment of its AssetCare platform will both improve the wind farm’s energy production output and reduce Longyuan’s operational and maintenance costs. It expects this to be just the first step in a multi-phase relationship with Longyuan.
Dave Weinerth, mCloud President of Smart Energy, said that his company looks forward to “demonstrating the power of AssetCare to Longyuan and helping them maximize the performance of their wind turbine fleet.”
“By connecting these wind turbines to our AI and analytics capabilities, we are confident we will discover how to achieve better performance for these wind turbines, positioning AssetCare for more turbines in their portfolio,” he added.
Universal mCloud Shows Consistent Quarter-Over-Quarter Growth
The announcement is just the latest in a series of accomplishments from Universal mCloud. Earlier this month, the company reported an increase in revenue from $2.2 million CAD in Q1 2019 to $3 million CAD in Q2. That represents an impressive 36 percent increase from the previous quarter and a stunning 443 percent increase from Q2 2018.
Part of that revenue comes from mCloud’s first AssetCare deployment. In July, the company delivered remote management capability technology to six oil and gas facilities in Alberta, Canada. Using a Software-as-a-Service model, those deliveries will net Universal mCloud a total of $1 million.
The capabilities in the first AssetCare deliveries were based in part on technology acquired from Autopro Automation Consultants. mCloud announced the completion of the Autopro acquisition on July 11. This not only positioned the company as a major provider of asset management solutions to oil and gas companies, but it also added roughly $5.5 million in EBITDA on a trailing 12-month basis.
On top of these achievements, within the last month, Universal mCloud was able to fully repay a $2 million loan provided by Flow Capital Corp and entered into a credit facility with Integrated Private Debt Fund VI LP for $13 million.
Universal mCloud’s Bright Future
While the company hasn’t announced how much revenue it will receive from Longyuan, the agreement no doubt enables the company’s continued growth. As Dave Weinerth notes, “The World Wind Energy Association estimates China has approximately one-third of the world’s total installed wind capacity and, with over 19,000 MW, Longyuan is China’s largest wind farm developer and operator.”
If the AssetCare deployment does lead to further agreements between Universal mCloud and Longyuan, mCloud will be well-positioned to capitalize on China’s sizable wind power market.
The company’s goal—to create a more efficient future—has led it to provide asset management solutions for more than 100 blue-chip customers. As it continues to maximize energy output around the world, investors should take note of this industry-leading company.
Featured image: DepositPhotos © majaFOTO