Thermal Energy CEO Tim Angus. (Darren Brown, OBJ)

Thermal Energy International Inc. (TSX-V:TMG) saw revenues skyrocket in its fourth quarter and full fiscal year, and net losses narrowed as the company began to take in larger contracts for its custom energy and emissions reduction systems.

The Ottawa-based company said full-year revenues jumped to $4.9 million from just $821,024 a year earlier, due in part to its completed contract at Fraser Papers' Thurso mill, which will be delivered over a six-year period and is valued at $3.75 million, as well as to two U.S. contracts at Kelloggs and Phillips Lighting.

Net loss also shrank slightly for the fiscal 2008 year, to $2.37 million or 2.5 cents per share, from $2.44 million or 3.1 cents per share, although the company said it was still suffering from insufficient sales volume to cover its current level of fixed costs. The company was also hit by $380,163 in cost overruns and foreign exchange losses at the Phillips project, and warranty-related costs for several other projects.

"Fiscal 2008 was a landmark year for Thermal Energy's evolution as a global energy services solution provider," said Thermal CEO Tim Angus in a statement. "More importantly, we successfully developed an innovative energy-saving program – our Thermal-AUD Alternate Utility Delivery program – which delivered its first major customer largely responsible for this year's record growth."

For the fourth quarter alone, the company posted nearly a fivefold increase in revenue, to $2.75 million from $480,179, marking the first time Thermal had seen revenue of more than $2.5 million in a single quarter.

Net loss was also reduced during the quarter, to $521,388 or 0.5 cents per share, from $712,149 or a penny a share a year earlier.

Thermal's shares fell to a 52-week low of 19 cents on the TSX Venture Exchange on Monday afternoon, down seven per cent.