Volatus Aerospace, a leading aerial intelligence provider, has announced its plans to expand its oil and gas pipeline surveillance operations in the USA. The company has recently signed an initial contract with a prominent energy company in the country, with the launch set for October.
While the contract value remains undisclosed, Volatus is confident that this expansion will open up a significant market opportunity estimated to be worth $1.1 billion by 2033. Volatus CEO Glen Lynch expressed his optimism, stating that the company expects to generate an annualized revenue of up to $2.94 million (CAD 4 million) by 2024, with an EBITDA margin of 10 percent.
Volatus Aerospace already has an established presence in the oil and gas industry in Canada, providing services since 2013 through its subsidiaries Canadian Air National and Synergy Aviation. The company is known for its aerial intelligence capabilities and has flown over 620,000 miles (one million kilometers) of pipeline right-of-way annually from Kitimat, British Columbia to Ottawa, Ontario. With the USA having approximately 2.6 million miles (4.2 million kilometers) of oil and gas pipelines, according to the USA Chamber of Commerce Global Energy Institute, the expansion into the US market is a natural progression for Volatus.
One of the key competitive advantages for Volatus Aerospace lies in its proprietary software, the Aerial Information Reporting System. Additionally, the company has established partnerships with advanced sensor and AI companies, which further enhances its surveillance capabilities. Volatus also highlights the benefits of using drone technology for aerial intelligence, as it reduces risks to human life, financial costs, environmental impacts, and disruption to wildlife.
Energy companies and pipeline operators rely on aerial inspection services to ensure the safety and compliance of their infrastructure. Volatus Aerospace utilizes both piloted aircraft and long-endurance drones to monitor pipeline right-of-way for signs of damage, leaks, gas emissions, and potential threats like unauthorized machinery or construction near the pipeline.
In line with its expansion plans, Volatus Aerospace recently acquired Sky Scape Industries LLC, a company specializing in remote sensing techniques for inspection services in various industries. This acquisition strengthens Volatus’ presence in the USA and provides access to long-term contracts with utility companies, offering comprehensive inspection services for power utilities, emergency response for oil and gas, and facade inspection services for property management.
Furthermore, Volatus has received regulatory approvals to expand its operations in wildfire suppression. The company can now fly beyond the visual line of sight and above 400 feet above ground level to support wildfire suppression agencies across Canada. With these approvals, Volatus aims to target a $70 million serviceable obtainable market opportunity, according to management estimates.
While Volatus reported a net loss of $1.8 million (CAD 2.45 million) in the second quarter of this year, compared to $1.18 million (CAD 1.6 million) in the same period last year, the company remains optimistic about its growth prospects. It generated a revenue of $6.4 million (CAD 8.7 million) for the three months ending June 30, representing a 31 percent increase compared to the same quarter in the previous year. This revenue growth is primarily driven by scale in services, according to the company.
Volatus CEO Glen Lynch emphasized the company’s commitment to achieving sustainable profitability by streamlining corporate objectives and maintaining a responsible culture that delivers results to clients while rewarding stakeholders.
With its expansion into the US oil and gas pipeline surveillance market, combined with its expertise in aerial intelligence and growing portfolio of services, Volatus Aerospace is poised for continued growth and success in the industry.