Recon Technology Ltd. (RCON) stock prices were up by 0.050% shortly after market trading commenced on September 7th, 2021. This brought the price per share up to USD$3.21 early on in the trading day.
RCON Stock’s Contract with PetroChina
September 7th, 2021 saw RCON stock announce signing a service contract with PetroChina. This agreement is geared towards the hazardous waste disposal technology service project of a network of oil production plants in the Yumen Oilfield. The contract period has been set for one year and is valued at roughly USD$1.4 million. As per the contract, the company is required to transfer and ensure the safe disposal of almost 6000 tons of hazardous waste. Included in these services will be the removal of oily sludge temporarily stored in various oil production plants in Yumen Oilfield.
RCON Stock’s Presence in Yumen City
The company has secured a 50-year land use right for 26,235.59 square meters in Yumen City. A production line was constructed with an annual treatment capacity of 60,000 tons of oilfield oily waste comprehensive utilization. In conjunction with harmless comprehensive disposal (Oil Sludge Treatment Project), cumulative investment came out to a total of roughly USD$6.19 million. RCON stock has also reported achieving a necessary and scarce hazardous waste operating limit, which was issued by the Jiuquan Environmental Protection Bureau in Gansu Province.
Expanding Contracts
The company has reported being awarded six contracts for the disposal of sludge from facilities that produce oil under the Yumen Oilfield. Service tonnage of individual contracts went from tens of tons to hundreds of tons to thousands of tons per contract. RCON stock’s sludge treatment project line is the only existing treatment facility in the Gansu Province.
Continued Trajectory of Success
The company is leading the charge in developing domestic oil sludge treatment technology, facilitating the continued improvement of its production and treatment process. This is expected to result in increased awareness and recognition from oilfield companies, as well as the obtaining of new service contracts. Thus far, the company has signed an aggregate of roughly USD$2.8 million in service contracts.
Future Outlook for RCON Stock
The company reported a stellar quarter, consolidated by the awarding of various oil sludge disposal contracts. RCON stock is poised to capitalize on the opportunities afforded to the company as a result of its recent developments. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value over the long term.
