Plug Power Inc (PLUG)

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BREAKING | Hydrogen equipment maker Plug Power widens quarterly losses to almost $300m amid crashing revenue
Sales of equipment slump ahead of major push by company to deliver electrolysers in 2024
Rachel Parkes 43 minutes ago

US pure-play hydrogen equipment manufacturer Plug Power has posted a quarterly loss of $296m for the first three months of 2024, amid a massive crash in quarterly revenue while it awaits the commissioning of several of its proton exchange membrane (PEM) electrolyser systems, and for a new pricing regime to take effect.

The Q1’2024 loss is significantly wider than the $207m posted in the first quarter of the previous year, as well as the $284m in the third quarter of 2023, and puts the company on a trajectory to report another more-than $1bn loss for the year.

Plug made a massive $1.4bn loss in 2023, after it was squeezed by supply chain problems and legacy H2 supply contracts. The problem became severe enough for it to raise the alarm about its ability to remain a going concern, an issue that Plug reported as resolved in September last year.

Revenue for the quarter slumped to $120m, just over half the $210 posted a year ago, with cash made from sales of equipment crashing to just $68m, down from $182m this time last year.

But Plug put the limp figures down to “new product scaling”, pointing out that it cannot yet report revenue from electrolyser systems currently undergoing commissioning.

Most of its revenue for the year will come during the second half of 2024, it indicated.

“Consistently with past seasonality and continued new product scaling, Plug expects that one-third of its full year revenue will be in the first half of 2024,” the company said in a statement. “As of the Q1 2024 earnings date, Plug currently has 20 electrolyser systems undergoing commissioning at third-party customer sites, with further deliveries to be made over the balance of 2024.”

The company has also instigated a price increase across its entire portfolio and especially on sales of hydrogen pricing, which was the main reason for its cash squeeze in 2023.

“We expect to see a positive impact to our margins in coming quarters as a result of these actions,” it said.

In addition, Plug said it is experiencing a rebound in sales in its materials handling business (eg, hydrogen fuel cell-powered fork lift trucks) after a price recalibration, as well as an effort to change the business model to direct sales and customer-financed leases.

Last month Plug announced that it would deliver more of its PEM electrolysers in 2024 than it had to date, pushing the capacity of installed Plug machines to 189MW.

This will equate to the delivery of 40 systems in total over 2024.

And the company’s efforts to shore up its cash reserves in the wake of its liquidity scare last year appear to be bearing fruit — Plug reported $173m in unrestricted cash for the quarter, a 55% increase on the $111m it reported in the same quarter last year.

“We continue to make steady progress by following our established goals and business priorities,” said PlugPower’s chief executive Andy Marsh. “As we enhance our financial performance in the upcoming quarters, Plug is set to retain its leadership role in advancing the hydrogen economy, which is anticipated to experience swift expansion and widespread adoption globally in the future decades.”

Nevertheless, the company’s stock price remains in the doldrums, sitting at $2.52, around 45% lower than it was at the beginning of 2024.

https://www.hydrogeninsight.com/electrolysers/breaking-hydrogen-equipment-maker-plug-power-widens-quarterly-losses-to-almost-300m-amid-crashing-revenue/2-1-1641551