Volatus Ventures into U.S. Pipeline Intelligence Expansion

12 Sep, 2023

Volatus Ventures into U.S. Pipeline Intelligence Expansion

Volatus Aerospace Corp. has unveiled plans to expand its oil and gas pipeline surveillance operations in the United States, with an initial contract secured from a prominent American energy company, according to a recent announcement by Volatus.

The contract is slated to kick off in October, although the specific contract value has not been disclosed by Volatus. Volatus CEO Glen Lynch expressed confidence in the company's capabilities, citing their experience and expertise in a burgeoning market that is projected to reach a value of US$1.1 billion by 2033. Lynch anticipates an annualized revenue of up to $2.94 million (CAD 4 million) in 2024, along with a 10 percent EBITDA margin, aligning with their successful track record in the Canadian services segment.

Volatus, known for providing aerial intelligence, has a well-established presence in Canada's oil and gas industry, offering services since 2013 through its subsidiaries, Canadian Air National and Synergy Aviation. They've conducted over 620,000 miles (one million kilometers) of pipeline inspections annually, spanning from Kitimat, British Columbia, to Ottawa, Ontario. Highlighting the substantial pipeline network in the USA, boasting 2.6 million miles (4.2 million kilometers), Volatus cited data from the USA Chamber of Commerce Global Energy Institute.

The company emphasized its competitive advantages, including proprietary software (the Aerial Information Reporting System), collaborations with advanced sensor and AI firms, and the ability to provide drone aerial intelligence to enhance or replace piloted aircraft. This shift reduces risks to human life, lowers financial costs, minimizes environmental impacts, and mitigates disruption to wildlife.

Volatus underscored the crucial role of aerial inspection services for energy companies and pipeline operators in ensuring infrastructure safety and regulatory compliance. Piloted aircraft and long-endurance drones are employed to monitor pipeline right-of-way for damage, leaks, gas emissions, and potential threats like unauthorized machinery or construction near the pipelines.

In an earlier announcement, Volatus detailed its continued expansion in the USA through the strategic acquisition of Sky Scape Industries LLC. SkyScape Industries specializes in remote sensing techniques, providing comprehensive inspection services for power utilities, emergency response in the oil and gas sector, and facade inspections for property management. The company noted Sky Scape's strong presence and long-term contracts with utility companies in the USA.

During the second quarter, Volatus received regulatory approvals to extend its operations into wildfire suppression. Transport Canada granted special authorization to operate beyond the visual line of sight and above 400 feet above ground level to support wildfire suppression agencies across Canada. This expansion positions the company to tap into a serviceable market opportunity estimated at $70 million, according to management estimates.

In the second quarter financial report, Volatus reported a net loss of $1.8 million (CAD 2.45 million), compared to $1.18 million (CAD 1.6 million) for the same period in 2022. However, the company achieved a 31 percent increase in revenue, generating $6.4 million (CAD 8.7 million) for the three months ending June 30, driven by scaling up its services.

Lynch commented on the Q2 results, stating, "Our Q2 results clearly demonstrate that we're on track for immediate and long-term efficiencies across all our business lines." He emphasized the company's commitment to sustainable profitability through streamlined corporate objectives and a responsible culture that delivers results to clients and rewards stakeholders