National Energy Services Co. (OTCBB: NEGS)
acquired the rights to manufacture and sell/install a patent pending building panel in Central and South America. These structurally insulated panels are one of the most well suited products for use in component building systems in Central America where the moisture, winds and weather play an important role in dictating the type of building material to be used. We expect to do other expansion of our subsidiary's product line in the region making this acquisition a potential for a one source solution to building and electrical needs.
As announced last week, our subsidiary Applied Concepts for Energy Corp. will begin installing micro-turbine electrical units in June 2010. The Company has sold an initial 300 customers installations of these micro-turbines which sell for $28,000 each making the revenue a minimum of $8,400,000 from these initial installations. The installations may also include new HVAC, water heater and other utility related systems. The maximum full configuration is $45,000 per residential installation. We anticipate a minimum of 12% profit from the turbine sales alone with higher profit margins on ancillary equipment and installation. Currently we are delayed by the manufacturer’s backlog; we expect delivery of our first systems in mid-June. Our goal is to install 500 units by the end of our fiscal year October 31, 2010 and a total of 2,000 units in our inaugural year selling this product.
The homeowner’s motivation for installing these systems is the reduction of their utility costs to $35 per month and having no direct cost for the micro-turbine. They do however have to pay for the ancillary systems they purchase. The micro-turbines are owned by New World Energy who sells the excess power generated to the local utility company which gives them cost recovery for the micro-turbine in approximately 18 months.