January 17, 2012
It is with bittersweet feeling that I write this letter to you today. On the one hand, I am enthusiastic to share the amazing accomplishments and feats of this past year with you, one that involved explosive growth, exposure and change, and on the other, I am saddened to report the loss of an individual that will forever leave a mark on the origins of our existence and technology, as well as our hearts.
In March, 2011 we forecasted an increase in fiscal year 2011 revenues of about 250% as compared to 2010 and forecasted continued growth for 2012. Although our year end financials are not yet finalized, I am happy to report that we met our fiscal year 2011 estimates of approximately 250% revenue growth from 2010.
The increase in revenues reflects a growing demand for our Voraxial® Separators, specifically in the oil & gas exploration and production markets. In the past year our Voraxial® systems have been deployed to both offshore and onshore production facilities. Our customers include multi-national oil companies, national oil companies and smaller entities as well, both domestically and internationally.
We believe that the growing demand and revenues for the Voraxial® will continue to increase in 2012 mainly from offshore and onshore oil & gas exploration and production customers as well as other developing market segments for the Voraxial®.
We are receiving a higher volume of inquiries and request for proposals. As such, we are forecasting a revenue growth of about 75-100% in 2012 and believe, depending on the timing of certain discussions and consummation of potential orders, that the growth rate can well exceed 225+ percent increase from 2011. We continue to believe the markets for the Voraxial® Separator are developing as companies with high volume water separation problems are becoming more familiar with the Voraxial®.
Overall spending in the exploration and production market is estimated to grow at about 10% to just under $600 billion in 2012, which would represent a record year. By 2015, spending in exploration & production is estimated to approach $800 billion. EVTN is currently progressing with numerous opportunities within the oil and gas exploration & production market. These projects require liquid/liquid, liquid/solid and liquid/liquid/solid separation and may include the Voraxial® 2000 Separator, Voraxial® 4000 Separator, Voraxial® 8000 Separator or multiple versions of the Voraxial® Separator Skid.
We spent the past year focusing on increasing our exposure in the oil & gas industry by further developing our relationships with oil field service companies, investing in research and development which will result in new patents and completing the Submersible Voraxial® 8000 which was utilized in the X CHALLENGE Oil Spill Competition.
The majority of our marketing efforts have been focused on the produced water sector of the oil & gas exploration and production industry. However, the unique performance advantages of the Voraxial® provide the Company with revenue opportunities from other market sectors as well.
In the past year, EVTN was invited to be a guest speaker at various financial and industry conferences such as the Chevron / Office of Spill Prevention and Response (OSPR) sponsored oil spill conference, the "Fourth Biennial Technology Workshop for Oil Spill Response in the Marine Environment" and the Clean Gulf Training and Exhibition, the "World's Largest Oil Spill Response & Training Event", where we were one of two selected companies to present our technologies during the session titled: "Response Equipment and Technologies". We were also invited to be guest speakers at several financial conferences in California and New York and displayed our Voraxial® Separator at industry trade shows.
In 2011, EVTN was selected as one of 10 finalists from over 350 international contenders for the $1.4 Million Wendy Schmidt Oil Cleanup X CHALLENGE. For the X CHALLENGE we manufactured the Submersible Voraxial® 8000. Our company did a great job in completing the Voraxial® in record time.
Although we did not ultimately win the X CHALLENGE due to issues unrelated to the Voraxial®, we came away with an even stronger conviction that the Voraxial® represents the highest performance oil/water separation technology available for oil spill cleanup applications. The visibility afforded by the X CHALLENGE to demonstrate the Voraxial® 8000 has already resulted in increased inquiries and project reviews from both oil spill response companies and the oil exploration and production industry.
Unfortunately, in 2011, we also lost our founder and former President, Alberto DiBella. On December 7th, 2011, at the age of 81, Alberto Di Bella lost his battle with Congestive Heart Failure. He will truly be missed but his presence and spirit are ever present and his legacy shall live on. The transition within the company, which began several years ago, is going smoothly and as planned.
Moving forward, we believe the increased exposure will continue to accelerate our Voraxial® sales with the Voraxial® 8000 becoming our top seller, especially within the oil & gas exploration and production market. The characteristics of the Voraxial® 8000, specifically the ability to process nearly 100 barrels (40 Tons) per minute with low energy requirements and a small footprint is increasing the awareness and demand of the Voraxial® Separators in various markets, especially the oil & gas industry.
The Voraxial® Separator fills a void in a large segment of the separation market, specifically, in areas of high flow, limited space and limited fluid pressure. Although we have mentioned this in the past, the differences between the Voraxial® and other separation solutions in the market are important to restate. Currently, the solutions to handle this type of fluid stream are 1) create pressure which can be costly and counter-productive to separation efficiency, or 2) use large settling tanks or systems using large tanks to allow time for the oil and/or solids to settle – this results in a slower process, larger footprint (for which space may not be available) and potentially more maintenance. Additional problems include the difficulty in handling a high concentration of oil or solids and a fluctuation in flow rate and oil/solids concentration.
We believe the Voraxial® provides the customers with a faster more economical solution. These competitive advantages, in addition to lower cost of ownership, operations and maintenance are increasing sales opportunities. We are receiving an incredible response from the community, answering many inquiries for additional information and forming new relationships never before possible without the exposure from our recent orders and our involvement with the Wendy Schmidt Oil Clean up X CHALLENGE.
Although our revenues are increasing and we are forecasting a similar growth rate for 2012, the "street" is, in our opinion, unaware of the opportunity that exists with EVTN. We are implementing a public relations campaign to better inform the financial markets of the vast opportunity before us. We believe as our revenues continue to increase and the "street" becomes aware of the growth opportunity, the stock, which we believe is undervalued, will appreciate.
We thank you for your continued support and wish you and yours a prosperous new year!
John A. Di Bella,
President & CEO
ABOUT ENVIRO VORAXIAL TECHNOLOGY
Enviro Voraxial Technology, Inc. (OTCBB “EVTN”) is a Fort Lauderdale, Florida based CleanTech company that developed and manufactures the Voraxial® Separator, a highly efficient technology for high volume, bulk separation of fluids such as oil and water.
The Voraxial® Separator, a unique, patented in-line turbo-separator that provides a cost effective method to efficiently separate large volumes of solids and liquids with different specific gravities and without the need of a pressure drop. The Voraxial provides highly efficient bulk separation while requiring less space, energy and weight than conventional separators processing the same volume. The Voraxial® is capable of simultaneously separating up to three components, such as oil, water and sand. The Voraxial® can be used as a stand-alone separator or incorporated with other equipment to provide a complete turnkey solution that allows customers to treat a variety of fluid streams while reducing treatment cost and increasing separation efficiency.
The separation market encompasses a series of multibillion dollar segments, spread globally across many industries and applications. EVTN continues to pursue the oil & gas industry but is also processing proposals from other industries such as mining, food processing, manufacturing and oil spill industries. EVTN owns significant IP surrounding the Voraxial and has new innovations under development. Please see www.evtn.com for additional information.
Safe Harbor Disclosure -- This Release contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of Enviro Voraxial® Technology, Inc. For this purpose, any statements regarding this announcement, which are not purely historical, are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including Enviro Voraxial® Technology, Inc. beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and based on information available to Enviro Voraxial® Technology, Inc. as of such date. There are a number of important factors that could cause actual events or actual results of Enviro Voraxial® and its subsidiaries to differ materially from those indicated by such forward-looking statements.