FuelCell Energy Inc (FCEL)

[XenaLives]

Very interesting - thank you.

FCEL now has visibility to a 45 MW retained portfolio over the next few quarters Note, FCEL has been working with Huron Consulting since March 15th (Jun 17/19 10-Q) which then evolved into the appointment of two Huron employees as “Restructuring Officers” on June 2 nd

The factthat FCEL closed on the purchase of 14.9 MW Bridgeport Fuel Cell Park on May 13 th, 2019 – after starting to work with Huron in March, and then highlighted the acquisition in their September 9 th 8-K - after the new CEO was appointed - indicates that both Huron Consulting and the new CEO see the merit of FCEL retaining projects on FCEL’s balance sheet. FCEL’s September 2019 Company Update also refers to a growing Generation Portfolio”.

Earlier this year FCEL eliminated a significant number of positions within the company as part of their restructuring process. Also, in the new CEO’s words in FCEL’s August 20th press release announcing his
appointment: “We also intend to instill a culture based around lean principles, focus on operational effectiveness, maintain our focus on fiscal discipline, and continue to work to optimize our capital structure.”

I suspect that FCEL’s new business plan will involve retaining projects on the company’s balance sheet for their “Generation Portfolio” – but that a level lower than 60 MW will be required to achieve breakeven levels. FCEL’s near-term 45 MW retained Generation Portfolio may be able to get the firm close to break-even levels.

FCEL has an Additional 65.5 MW of Projects in their Development Pipeline (September 9 th 10-Q):

https://canaccord.digitalagent.ca/documents/30476/0/FCEL+Update+-+September+2019.pdf/b849f5f8-b689-461c-bec6-d7e97b0427de