Replies to post #14552 on Keeping It Simple

[eastunder]

Susquehanna Trims Price Target on Plug Power to $13 From $14, Maintains Positive Rating

Current PPS at 7.37 10/12/23

Open Gaps
Direction Date range
up Oct-11-2023 7.22 to 7.29

[eastunder]

Plug Power (PLUG) to Report Q3 Earnings: What to Expect?
Zacks Equity Research
Fri, November 3, 2023 at 10:24 AM MDT·3 min read

https://finance.yahoo.com/news/plug-power-plug-report-q3-162400697.html

Plug Power Inc. PLUG is scheduled to release third-quarter 2023 financial numbers on Nov 9, after market close.

The company has a bleak earnings surprise history, having missed the Zacks Consensus Estimate in each of the preceding four quarters.

Let’s see how things have shaped up for Plug Power this earnings season.

Plug Power’s third-quarter results are expected to benefit from the December 2022 acquisition of the subsidiaries of Cryogenic Industrial Solutions, Alloy Custom Products and WesMor Cryogenics, which has expanded the company’s production capabilities for stainless steel and aluminum cryogenic transport truck-mounted cryogenic pressure vessels, cryogenic transport trailers, and other mobile storage containers. The Zacks Consensus Estimate for PLUG’s third-quarter revenues indicates a 30.7% jump from the year-ago reported number.

The company is expected to generate higher revenues from fuel delivered to customers and related equipment due to an increase in the number of sites with fuel contracts. The Zacks Consensus Estimate for revenues from fuel delivered to customers and related equipment suggests a 58.8% surge from the year-ago reported number.

An increase in revenues related to hydrogen site installations, liquefiers, cryogenic equipment, and electrolyzer stacks and systems is expected to have boosted revenues from sales of equipment, related infrastructure and others. The consensus mark for revenues from the sale of equipment, related infrastructure and others indicates a 17.7% rise from the year-ago reported number.

Expanding customer base is likely to drive revenues from services performed on fuel cell systems and related infrastructure. The Zacks Consensus Estimate for revenues from services performed on fuel cell systems and related infrastructure for the third quarter hints at a 31.4% jump from the year-ago reported figure.

However, high energy prices and inflationary pressure may dent Plug Power’s third-quarter results. Amid the tight labor market, labor shortages are expected to result in higher costs for the company, thus hurting its bottom line.

What the Zacks Model Unveils
Our proven model suggests an earnings beat for Plug Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: Plug Power has an Earnings ESP of +0.37%.

Zacks Rank: The company presently carries a Zacks Rank #3.

Highlights of Q2 Earnings
Plug Power incurred a loss of 35 cents per share, wider than the Zacks Consensus Estimate of a loss of 28 cents. The amount of loss also increased on a year-over-year basis. Total revenues of $260.18 million surpassed the Zacks Consensus Estimate by 9.61%. The top line soared approximately 72% year over year.

[eastunder]

Plug Power collapses after 'going concern' warning from hydrogen developer

Plug Power, which provides fuel cells for electrified industrial vehicles used by Amazon and Walmart, warned last night that it may not be able to survive it current cash squeeze.

Martin BaccardaxUpdated:Nov 10, 2023 8:04 AM EST
Updated at 8:03 am EST

https://finance.yahoo.com/m/d02dd117-de2f-314e-b871-7d98c20ba770/plug-power-collapses-after.html

Plug Power (PLUG) - shares plunged lower Friday after the hydrogen-fuel-cell developer warned that it may not be able to continue operations amid supply chain disruptions and a severe cash burn rate.

Plug Power, which provides fuel cells for electrified industrial vehicles used by Amazon (AMZN) - Get Free Report and Walmart (WMT) - also posted weaker-than-expected third quarter sales of $199 million last night, thanks in part to what it described as "unprecedented hydrogen supply challenges" in the north American hydrogen market.

In a later filing with the Securities and Exchange Commission, however, Plug Power also added that given its current cash position and expected capital spending, there is "substantial doubt about the Company’s ability to continue as a going concern."

The group is seeking a $1.5 billion loan from the Department of Energy, as part of its green hydrogen network financing, but funds are unlikely to being flowing into the Latham, New York-based group until early next year.

"To alleviate the conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern, management is currently evaluating several different options to enhance the Company’s liquidity position, including the sale of securities, incurrence of debt or other financing alternative," Plug Power said.

"The Company’s plan includes various financing solutions from third parties with a particular focus on corporate level debt solutions, investment tax credit related project financings and loan guarantee programs, and/or large scale hydrogen generation infrastructure project financing," Plug Power added in the 10-Q filing.

[eastunder]

Plug Reports Third Quarter 2023 Results with Revenue of $199M

2023 overall financial performance has been negatively impacted
by unprecedented supply challenges in the hydrogen network
in North America.

We believe this hydrogen supply challenge is a transitory issue, especially
as we expect our Georgia and Tennessee facilities to produce at full
capacity by year-end.

Lessons from ramping up our Georgia green hydrogen facility coupled
with our manufacturing ramp, diversity of products, and major new
customer wins reinforce Plug’s leadership position in the global green
hydrogen economy.

The liquid hydrogen market in North America has been severely constrained by
multiple frequent force majeure events, leading to volume constraints which has
delayed Plug’s deployments and service margin improvements: Plug continues to
manage through a historically difficult hydrogen supply environment by leveraging our
logistics assets and team members to transport hydrogen across the US to support customer
operations as well as implementing contingency plans in various regions of the country.
Despite this challenging industry environment, we have achieved 21% sequential gross
margin improvement in 3Q 2023 compared to 2Q 2023 in our fuel business.

Despite hydrogen supply challenges impacting overall company gross margin, we have
seen margin expansion in certain new products: Reported GAAP gross loss of (69%), was
impacted negatively by equipment sales mix, service contract loss accruals, and continued
negative fuel margins. Despite these factors, the Company saw margin expansion across
certain new product platforms.

Georgia green hydrogen plant nearing major milestone: We are completing the final step
of the commissioning process for the liquefiers/cold box. Liquid production is anticipated
between November 15th and year-end. Also, developments at Louisiana, Texas and New York
are expected to provide an additional step change in our fuel margin expansion. Our gas plant in Georgia has now
been operating for almost a year supporting high pressure tube trailer filling for Plug as well as other
customers. Unprecedented hydrogen supply challenges in the US only further reinforces our vertically integrated
strategy and need for a resilient generation network to support multiple applications.

Electrolyzer sales grew greater than three times
quarter over quarter. Multiple large-scale orders
validate Plug’s position as a go-to electrolyzer supplier
for industrial scale projects: Since our second quarter 2023 call, Plug has line of sight to an
additional 1 GW of electrolyzer orders to our backlog, including 550 MW for Fortescue in
Australia and 280 MW for Arcadia e-Fuels in Denmark.

Liquefier and cryogenics business continues rapid growth - sales pipeline now
exceeding $1.1B: Plug’s cryogenics and liquefier business revenue increased approximately
three times year over year (YoY), while margins have expanded by an even greater
improvement in the same period.

Average sales cycle continues to accelerate in our material handling business given the
value proposition of our product and increased market awareness of our solutions. Recently,
Plug has added multiple global customers including Tyson,
Ryder, STEF and others.

Large-scale stationary manufacturing is ramping up,
with first units operating at customer sites: Stationary
power manufacturing lines are commissioned, with
customer orders increasing across EV charging, data
centers, and microgrid opportunities. Plug is on track to
deliver multiple units in the fourth quarter of 2023, with
expected substantial growth in 2024 and beyond.

Service accrual charge reflects higher near-term cost projections, which have been
impacted by delay in roll out of certain reliability investments: In the third quarter of
2023, the Company has incurred a non-cash charge of $41.6 million. This charge reflects the
projection for future costs to service our existing fleet through the remainder of their service
contract. The severe hydrogen shortages have negatively affected direct cost of service as
well as the timing for implementation of fleet upgrades into customer operated equipment.
These factors have been compounded by certain cost increases from inflation impacts on
labor, materials and overhead. The Company is continuing to monitor the current cost trends
and hydrogen market dynamics. If these trends continue, the Company may have to record
additional service loss provisions in future periods.

Plug’s Gigafactory and Vista facilities represent global manufacturing excellence that
we believe will create a sustainable competitive advantage and industry cost
leadership: Plug has increased our manufacturing footprint from 50 thousand sq. ft. to
nearly 1 million sq. ft. With minimal additional capital investment, Plug believes it can
significantly expand our manufacturing capacity to meet anticipated demand while
delivering continued manufacturing cost reduction.

As Plug manages through short-term hydrogen supply disruption,
we are focused on operational scale, in-house hydrogen
generation and policy tailwinds to further the Company's position
as a global leader in the green hydrogen industry.

We believe four key business accelerators position the Company to dramatically change our
operations and financials in coming quarters, following what have been unprecedented challenges
that have arisen from hydrogen supply disruptions in 2023.

1. Business Expansion:
Diverse New Product Platforms: Electrolyzers, liquefiers, cryogenics, and new fuel cell
applications are beginning to become an increasing share of our revenue while we continue to
add multiple large customers in our material handling business. Business opportunities remain
robust, and expansion of these platforms will be instrumental in achieving our top line growth,
but more importantly establishes a clear path to margin expansion and profitability.
Large Scale Electrolyzer Customers: Over 1 GW of new electrolyzer opportunities, including
Fortescue and Arcadia, illustrate how Plug’s scale and technology are equating to industrialscale electrolyzer orders.
Partnerships Reaching Scale Globally: Plug and SK’s current activities include the use of
products across our entire platform. AccionaPlug is progressing the 15TPD plant in Spain. Hyvia
joint venture (JV) is well positioned to deliver robust growth in 2024 and beyond, with multiple
test pilots ongoing and fuel cell vans available for commercial use today.

2.Margin Enhancement Roadmaps:
Hydrogen Generation: Fuel margin rate improved by 21% sequentially from Q2 2023. Margin
improvement was achieved despite numerous force majeure events within the hydrogen
network that impacted as much as one-third of the US liquid hydrogen supply. Plug's logistics
capabilities and contingency plans have allowed us to manage this difficult environment. We
expect this is transitory as we expect Georgia and Tennessee facilities to come on-line by
year-end. We believe we have effectively managed this situation considering hydrogen pricing
has reached over $30/kg on the West Coast.
Manufacturing Scale: Plug has already established a world-class manufacturing presence
with the ability to meaningfully expand manufacturing capacity with minimal or no additional
capital expenditure. This sets the stage for continued cost reduction.
Simplifying Designs and Improving Performance: Service cost improvements remain a key
focus area for the Company in order to drive overall margin within the material handling
business. As part of this effort, Plug has deployed several fleet wide initiatives in 2023
implementing upgrades for in service equipment that will improve power density, reliability,
and life of the fuel cell components in material handling applications. Equipment upgrades
include a combination of software operability improvements as well as new hardware. Plug
continues to target 30% per unit service cost decrease over the
medium-term, as we see the results of these enhancements, continued increase of the fleet
mix to latest technology, release of new product stack platforms with higher power density,
and the rollout of power upgrades planned for 2024.

3. Future Funding Roadmaps: Given our forecasted capital expenditure and operating
requirements under the current business plan, and the Company’s existing cash and liquidity
position, the Company will need to access additional capital in the market to fund its activities.
The Company is pursuing a number of debt capital and project financing solutions.
Corporate Debt Solutions: We are evaluating varied debt financing solutions to support our
growth.
US Department of Energy (DOE) Loan Program: Currently, Plug is working towards a
conditional commitment from the DOE Loan Program Office to finance plants in our green
hydrogen network.
Project Finance and Plant Equity Partners: Our MOU with Fortescue contemplates Fortescue
having a 40% equity stake in Plug’s Texas hydrogen plant and for Plug to take up to a 25%
equity stake in Fortescue’s Phoenix hydrogen plant. We will continue to evaluate partners to
lower our capital expenditure needs.

4. Policy and Regulations:
Guidance for the Inflation Reduction Act (IRA) Production Tax Credit (PTC) is expected
before year-end: We believe that the guidance will be beneficial to the development of Plug’s
green hydrogen platform, serve as a catalyst for final investment decisions (FIDs) on multiple
hydrogen projects, and support future deployments of our fuel cell units and systems.
Hydrogen Hubs: The DOE announced $7 Billion for Regional Hydrogen Hubs. Plug is engaged
in all seven hubs and a corporate sponsor in five of the announced hubs. This involvement,
along with Plug’s expansive product portfolio, sets up the Company to play a substantial role
in these programs.
EU Renewable Energy Directive (RED): RED mandates renewable hydrogen use in transport,
industry, buildings, and district heating and cooling, with targets of 42% green hydrogen by
2030 and 60% by 2035 in the European Union (EU). The adoption of this policy, along with the
Net Zero Industry Act and Hydrogen Bank pilot auctions, represents meaningful government
incentives to accelerate hydrogen adoption across the region.

Green Hydrogen Generation Network and Plant Updates
Our Georgia plant represents a first-of-a-kind facility, which has come with invaluable learnings.
Some of the key lessons learned are already benefiting Plug as we are building additional plants in
various locations.
Improved contracting strategy: We have been able to secure a lump sum contract for
engineering, procurement and construction (EPC) work at our Texas plant. This will
meaningfully reduce construction capital expenditures versus the “time & materials”
contract employed in Georgia.
EPC scope of work: Turnkey contracts include the entire scope of the plant, ensuring
continuity and timeliness of plant construction. Procedure development: The project execution team has been able to optimize construction
and commissioning procedures based on experience with each plant component in Georgia.
Construction team members and facility oversight: The team has identified multiple key
positions to lead construction and commissioning activities across our network to ensure
efficient installation of key components. This includes lead mechanical supervisors and
additional electrical and instrumentation engineers.
Timeline management for first-of-kind projects: Timelines at Georgia, and key changes
listed above, allow our project execution timelines to have lower risk and greater oversight,
ensuring completion of future plants on targeted timelines.

In light of these learnings, we are also updating schedules for current plants under construction.

US Green Hydrogen Network:

Georgia: We are completing the final step of the commissioning process for the
liquefiers/cold box. Liquid production is anticipated between November 15th and year-end.
Olin JV - Louisiana: Construction continues with site grading, with the turnkey provider
mobilizing for installation of the liquefaction package in November. The commissioning plan
has been developed to ensure a smooth process from construction through commissioning
and start-up.
Texas: Construction began at the site with our hydrogen facility EPC contractor, Kiewit. Work
is ongoing for on-site grading, access roads, the power transmission line, and on-site
substation.
Alabama, New York: We continue to work in collaboration with New York Power Authority
and National Grid to complete and energize the substation, which remains the gating item to
achieve the full 74 TPD capacity in the first half of 2025.
Other Projects: Plug is actively evaluating several sites for potential new or expanded
production capabilities, with a focus on achieving up to 45 TPD of liquid hydrogen output.

European Green Hydrogen Network:
Port of Antwerp: We expect all permits to be obtained in
2024, which would allow it to move to the construction
phase in the course of the following year. Meanwhile,
conversations with off-takers are progressing, with the
plant’s targeted production already oversubscribed by
over tenfold.
Acciona JV: The JV is actively advancing the development
of our first three projects, which target curtailed renewable
energy sources. This will be the first 15 MW green
hydrogen plant in Spain, which we expect to be on track for
commissioning in the latter half of 2024.
Finland: Feasibility studies are being finalized, with the aim to start the next engineering
phase in the first quarter of 2024. The plants aim for a total capacity of 850 TPD, with FID
expected by 2026.
Other Projects: Plug is developing small-scale sites throughout Europe, driven by Plug
customers' demand for hydrogen, notably in the United Kingdom and Germany.

Plug continues to capture large-scale projects globally, with IRA
guidance as a potential catalyst for project FIDs in the US

We continue to track new orders in our previously disclosed 7.5 GW pipeline of near-term projects
approaching FID.

Arcadia eFuels has selected Plug to provide a 280 MW electrolyzer system to Arcadia’s
Vordingborg plant for the production of sustainable aviation fuel.

Plug is the preferred supplier of 550 MW electrolyzers for Fortescue’s proposed Gibson
Island Project. The plant is expected to produce approximately 385,000 metric tons of green
ammonia a year.

The near-term focus of customers remains on industrial applications. Low-carbon mandates in the
EU, hydrogen PTC in the US, and other low carbon fuel standards globally are driving investment.
Plug’s experience across our plant network and with customers has allowed continuous optimization
of our offering for industrial scale plant customers.

Cryogenics and Liquefier Business Delivers Strong Revenue
Growth and Further Product Diversification

Cryogenics solutions and liquefier sales contributed $35.4 million to Q3 revenue. The sales pipeline
includes up to $1.1B of opportunities, including multiple programs that may be able to begin revenue
recognition in the fourth quarter of 2023, depending on contract timing. We anticipate bookings and
revenue will continue to be lumpy in the near-term while we pursue these opportunities and seek to
build our liquefier backlog.

Customer Demand in High-Power Stationary Application
Creates Significant Hydrogen Offtake Opportunities

Plug commissioned our first high-power stationary units in the field in the third quarter of 2023 and
expects the business to continue growing in 2024 and beyond. A variety of end users for this product
are creating a large sales pipeline for both the stationary products and hydrogen offtake.
EV Charging: 1 – 5 MW of additional power for a site is needed for EV fleets, creating
challenges with grid availability, upgrade costs, and electricity pricing swings. Our application
solves time to power, cost of power, and reliability issues, while demanding up to 1TPD+ of
hydrogen for a 1 MW unit.
Micro-grids and Peaker Plants: Hydrogen for large-scale (1 MW – 1 GW+) backup power and
peak power is gaining traction as grid intermittency and physical limits of battery backup
make alternatives difficult. Hydrogen can address both scalability and duration for sites with
backup power needs beyond 6-8 hours.
Data Center Prime and Peak Power: Growing demand for cloud and AI processing is
stressing grid capacity globally. Plug's value proposition for data centers includes time to
power, limited impact to current data center architecture, true zero-emissions, and 100%
renewable matching.

Material Handling Customer Diversity is Driving
Broad-Based Growth

Our pedestal customers are continuing to grow their business in the US and Europe, with 11 total
pedestal customers in the US and Europe. Plug remains focused on improving service and power
purchase agreement margins for material handling and is executing internal initiatives to drive costs
down as we scale our business.

Plug’s newest pedestal customer, Tyson, showed overwhelmingly positive results when analyzing
their business case for integrating Plug’s fuel cells. This included a 13-15% productivity gain, 17M
pounds of estimated carbon footprint reduction annually, and 50,000 annual labor hours saved
across eight sites.

A driving factor in our global material handling growth is the reduction in product lead times from
our new manufacturing sites, coupled with the maturity of our solution following years of successful
implementation. The sales cycle has decreased meaningfully given the value proposition of our
product and we have added multiple customers including Tyson, Ryder and STEF.

World-Class Global Manufacturing Facilities
Drive Operating Leverage

The Innovation Center and Gigafactory in Rochester, NY reached its initial nameplate capacity of 100
MW of electrolyzer stacks per month in May 2023. The factory design allows for continued expansion
and automation, which will enable Plug to drive down costs and increase throughput over time with
additional equipment. The Company plans to organically expand its proton exchange membrane
(PEM) stack manufacturing capacity in Rochester well beyond 2.5 GW per year. We believe this could
result in greater than 4 GW of electrolyzer capacity, and over 200,000 fuel cell stacks produced per
year by 2030.

Additionally, we are nearing completion on the balance of the manufacturing lines at our Vista Fuel
Cell Manufacturing facility in Slingerlands, NY. The Vista facility spans 407,000 square feet, with the
ability to expand to 800,000 square feet to meet the growing demand for our fuel cell products. This
massive expansion in Plug’s fuel cell manufacturing for material handling represents a four-fold
increase YoY. The site targets capacity by 2030 to produce 80,000 GenDrive units, 500 MW of 1-3 MW
stationary power units, and 20,000 ProGen engines.

Summary of Third Quarter Financials

Revenue was $199M in the quarter, compared to $189M for the third quarter of 2022, up 5% YoY.
Overall, company gross margin was negative 69%, compared to negative 24% for the third quarter
of 2022. The equipment line item now consists of a blended margin from established fuel cell
applications in the material handling sector and our rapidly expanding new product lines such as
electrolyzers, on-road mobility solutions, stationary power units, cryogenic equipment, and
liquefiers.

The unprecedented number of hydrogen facilities in the market running below nameplate capacity
has caused significant hydrogen shortages impacting deployment schedules, fuel prices, system
efficiencies, service on hydrogen infrastructures, and timing of varied reliability program rollouts.
The network has seen improvement recently, and we expect liquid hydrogen production from both
the Georgia and Tennessee facilities will have substantial impacts on network disruptions.

Service costs have been affected as hydrogen disruptions have delayed the roll out of upgrades at
both new and existing customer sites. These factors have been compounded by certain cost
increases from inflation impacts on labor, materials and overhead. Upgrades in the field also take a
period of time to create meaningful cost improvements, as aging units in the field continue to require
additional service. In the interim, given the impact on service and near-term cost projections, we
have recorded additional service loss accrual for open contracts. Improvements to our service
margin profile are planned to be addressed through the roll out of a new GenDrive platform in 2024,
continued upgrades at existing facilities, and operational continuity from lower hydrogen supply
disruptions.

Delivering on Roadmap and Margin Expansion
Remains Key Corporate Focus
Plug remains focused on building a global green hydrogen ecosystem and delivering on its growth
objectives, margin expansion and path to profitability. We look forward to updating you all on our
next call.

[eastunder]

PLUG earnings call for the period ending September 30, 2023.

https://www.fool.com/earnings/call-transcripts/2023/11/09/plug-power-plug-q3-2023-earnings-call-transcript/

Andy Marsh -- Chief Executive Officer

Thank you, Teal, and thank you for joining the third quarter conference call. It's a difficult quarter, driven primarily by the availability of hydrogen. Over the past several months, there has been enormous challenges associated with the availability of hydrogen, primarily due to downed plants, including our Tennessee facility and temporary plant outages across the entire hydrogen network. For many days, demand outstripped supply.

For example, many of the California fueling stations have been without fuel or have had limited fuel on a regular basis over the past several months. Additionally, the price of these stations for hydrogen has been over $30 per kilogram at the pump, about twice the normal price. To service our customers, Plug has been moving hydrogen from the West Coast to the East Coast. This has been a yeoman's effort and has been accomplished while reducing the core cost of hydrogen compared to the second quarter.

Good news is the network is now stabilized and many of these planned outages have subsided, plus additional capacity will be coming online. We expect our Tennessee plant will be back online producing hydrogen by the end of the year. This plant when fully operational provides about 20% of our production needs. One of our major suppliers is upgrading one of their facilities to allow the plant to operate at full nameplate capacity in the coming months.

The planned output has been producing between 0% to 25% of capacity. We are continuing to see progress at our Georgia plant, and we are finishing the last step in the construction process, commissioning the liquefier. We expect the plant to be online by year-end. A few other points stress hydrogen network also caused the delay of deployment of some of our North American material handling customers.

These sites will be commissioned as the hydrogen issues resolved. It's just a timing issue. Many of those facilities, actually the fuel cells and hydrogen plant or fueling structure are already available. We believe though that this experience reaffirms the criticality of building our nationwide hydrogen network to support our fuel cell business, as well as the financial benefits that this network could accrue to the company for both that business and the additional applications that are beginning to be realized.

Furthermore, this experience underscores the wisdom of our business diversification model. In the fourth quarter, we anticipate the revenue from our new ventures will surpass revenue from our traditional business for the first time as our electrolyzers and cryogenic businesses continue to grow. Finally, I'd like to just like to reflect on the conversation I had yesterday morning with a European customer supplier and partner. He just toured our facilities and reminded me that no one has built hydrogen infrastructure on the scale we have.

No one has our product set, no one has the technical talent, no one has our customer relationships, and no one has our real-life experiences. It remains our belief and that as the market for hydrogen fuel cell grows, no one is in a better position than Plug to take advantage of this opportunity. This is just a bump on the road. Paul, Sanjay, and I are now available for questions.

[eastunder]

PLUG to Gap down from 5.93 on open








Plug Power shares dive on raising going concern doubts
8:05 AM ET, 11/10/2023 - Reuters
Nov 10 (Reuters) - Shares of Plug Power plunged nearly 30% in premarket trading on Friday after the hydrogen fuelcell maker raised going concern doubts.

The liquid hydrogen market in North America has been severely constrained by frequent force majeure events, leading to volume constraints, which have delayed Plug's deployments and service margin improvements, the company said on Thursday.

Plug has been facing liquidity issues and has lost more than half of its market capitalization since the start of the year. Its annual financial performance has also been impacted by "unprecedented" supply challenges in the hydrogen network in North America.

"The company is projecting that its existing cash and available for sale and equity securities will not be sufficient to fund its operations through the next twelve months," Plug said.

The company would need to tap additional capital to fund its activities.

The company said it was pursuing a number of debt capital and project-financing solutions, including corporate debt and a loan program of the U.S. Department Of Energy.

The Latham, New York-based Plug said cash and equivalents at the end on Sept. 30 stood at $110.8 million.

"While we believe Plug Power can cycle past its current cash flow issues, the current operating and capital markets environments are challenging and we believe PLUG shares are likely to be range bound over the next several quarters until clarity around its balance sheet are sorted out," J.P. Morgan analyst Bill Peterson said.

Plug on Thursday also reported a bigger loss for the three months ended Sept. 30 and its revenue of $198.7 million widely missed estimate of $228.2 million, according to LSEG data. (Reporting by Tanay Dhumal in Bengaluru; Editing by Maju Samuel)

[eastunder]

Truist Adjusts Price Target on Plug Power to $6 From $8, Maintains Hold Rating
10:53 AM ET, 11/10/2023 - MT Newswires
10:53 AM EST, 11/10/2023 (MT Newswires) -- Plug Power (PLUG) has an average outperform rating and a price target range of $4 to $37, according to analysts polled by Capital IQ.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 3.53, Change: -2.40, Percent Change: -40.47

[eastunder]

Plug Power's stock extends losses as investors seek 'clarity' about going-concern warning

https://www.morningstar.com/news/marketwatch/20231113244/plug-powers-stock-extends-losses-as-investors-seek-clarity-about-going-concern-warning

Provided by Dow Jones
Nov 13, 2023 2:07 PM MST
By Claudia Assis

Plug Power's stock likely rangebound until worries about its balance sheet are sorted out

Shares of Plug Power Inc. ended lower on Monday, extending a losing streak to a sixth straight session after the fuel-cell company spooked investors with a going-concern warning, a missed quarter and other ills.

The stock weaved in and out of the red Monday, and the gyrations came after Plug Power's stock (PLUG) dropped nearly 50% last week, its worst since the week ending Feb. 15, 2013.

The stock has lost more than 70% so far this year, contrasting with gains of around 15% for the S&P 500 SPX. The 2023 loss would be a third consecutive double-digit yearly loss for the stock, once a Wall Street wonder that rose more than 900% in 2020.

Plug Power last week unveiled a slew of bad news for investors, starting with a quarterly loss and a guidance withdrawal due to a "severe" hydrogen shortage.

Tucked in a regulatory filing, the company also had the going-concern warning, saying it had an accumulated a deficit of $3.8 billion as of Sept. 30.

Plug Power "has continued to experience negative cash flows from operations and net losses," the warning continued.

Net losses have piled up, and Plug Power "expects to generate operating losses for the foreseeable future as it continues to devote significant resources to expand its current production and manufacturing capacity, construct hydrogen plants and fund the acquisition of additional inventory to deliver our end-products and related services.."

JPMorgan analysts downgraded their rating on the stock to the equivalent of hold from buy, saying that the third-quarter earnings "illustrated numerous near-term challenges the company is facing."

"Once armed with a pristine balance sheet after raising meaningful capital, Plug's short-term cash has been whittled down as a result of operational and scaling up challenges and an unfavorable hydrogen supply environment," the JPMorgan analysts said in their recent note.

"This has led to significant margin challenges and higher-than-expected cash burn," they said.

The company "can cycle past its current cash-flow issues," they said, but "the current operating and capital markets environments are challenging and we believe [Plug Power] shares are likely to be rangebound over the next several quarters until clarity around its balance sheet is sorted out."

Plug Power told investors it will tap capital markets and seek Energy Department loans to shore up its finances.

"Previous examples of DOE funding are normally 6 months from contingency to approval," so its investors will have to provide "critical near-term funding," analysts at Jefferies said in a note.

Truist analysts lowered their price target on the stock to $6 from $8 and reiterated their hold rating on the shares. Plug Power "is feeling the pain of attempting to scale up multiple hydrogen-fueled segments in a heavily hydrogen-constrained market to the impediment of margins/cash flows," they said.

Evercore ISI analysts sounded a little more optimistic about Plug Power's prospects. The Energy Department loan is expected to be approved and disbursed to Plug Power over the next few quarters, "which should alleviate cash concerns," they said.

In the longer term, "the green hydrogen economy is coming close to reality as favorable government legislation ... continues to provide tailwinds," they said.

"We anticipate Plug to meaningfully expand margins as production plants ramp up, green hydrogen production costs decline, and the company begins monetizing" tax credits, they said, keeping their rating on the stock at the equivalent of buy.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

[eastunder]

PLUG cpps 4.15 11/14

[eastunder]

Plug Power to Provide Annual Business Update on January 23, 2024
January 16, 2024 07:00 ET
Source: Plug Power, Inc.


LATHAM, N.Y., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced the access details for its January 23, 2024 business update conference call. During the conference call, Andy Marsh, the Company’s Chief Executive Officer, and Paul Middleton, the Company’s Chief Financial Officer, will provide a business update and answer questions.

Join the call:

Date: Tuesday January 23, 2024

Time: 8:30 am ET

Direct webcast: https://event.webcasts.com/starthere.jsp?ei=1652371&tp_key=7aea09abd3
The webcast can also be accessed directly from the Plug homepage (www.plugpower.com). A playback of the call will be available online for a period of time following the call.

[eastunder]

Plug Power Hurtles Toward 4-Year Low After $1B Equity Offering Plans: Why This Analyst Says It's Unlikely To Woo Back Investors
by Shanthi Rexaline, Benzinga Editor

January 18, 2024 4:22 AM | 3 min read

https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36673232/plug-power-speeds-towards-4-year-low-after-1b-equity-offering-plans-why-this-analys

ZINGER KEY POINTS

Plug Power's predicament is due to multiple headwinds to its growth, says a KeyBanc analyst.
In a filing with the SEC in November, the company flagged a "going concern" warning.


Hydrogen and fuel-cell energy company Plug Power, Inc.‘s PLUG


What Happened: Plug Power, which slumped over 10% in the regular session on Wednesday, fell an additional 14.08% in after-hours trading. If the stock opens at the after-hours quote of $2.35, it remains on track to tumble to its lowest level since early October 2019.

In a prospectus filed with the SEC, the company said it has entered into an at-market issuance sales agreement with B. Riley Securities regarding the sale of up to $1 billion in stock. The sale will be made from time to time, with B. Riley acting as a sales agent.

Plug Power said it would retain broad discretion over the use of the net proceeds and that it currently intends to use them for working capital, capex, and general purposes. It also flagged the possibility of the net proceeds going to acquiring or investing in businesses, products, and technologies. Pending these uses, it would invest the net proceeds, primarily in government securities, and short-term, interest-bearing securities, it said.

The agreement has a cap such that the aggregate sale of shares cannot exceed $30 million per week.

Why It’s Important: KeyBanc Capital Markets analyst Sangita Jain said she expects the announcement to pressure the stock further. The stock has been languishing, as the company faces multiple headwinds to its growth, she said.

“The announcement of a potential equity offering at this juncture, while necessary to remove the ‘going concern’ language from the annual 10-K filing, is unlikely to alleviate investor concerns,” Jain said.

In the 10-Q filed with the SEC in early November, the company said it expects to generate operating losses for the foreseeable future due to investment needs and that its existing cash, and available-for-securities and equity securities will not be sufficient to fund operations through the next 12 months.

“These conditions and events raise substantial doubt about the company’s ability to continue as a going concern,” it said then.

What’s Next: Jain said Plug Power investors will now likely look ahead to an annual update call the company is hosting at 8:30 a.m. Tuesday. The company will likely shed details on the “decision to file for the equity shelf, the outlook for project financing and if the Department of Energy loan is still in the works,” the analyst said.

Plug Power will likely provide updated fourth-quarter revenue guidance and potentially its outlook for 2024 revenue as well as gross and operating margin, she added.

Jain maintained her below-consensus 2023 and 2024 revenue and adjusted EBITDA estimates for the company.

KeyBanc has a Sector Weight rating on Plug Power.

[eastunder]

Has Plug Power Done Enough to Plug the Hole in its Finances?
Matthew DiLallo, The Motley Fool
Mon, January 22, 2024 at 10:41 AM MST·5 min read
https://finance.yahoo.com/m/7585f4d1-7c9a-3955-be7c-bee632e5dcda/has-plug-power-done-enough-to.html

Plug Power (NASDAQ: PLUG) has been a disastrous investment over the past year. Its stock has collapsed, falling more than 80%. The primary factor weighing on the stock has been concerns that it could run out of money.

However, Plug Power recently took a step to address that issue. It plans to raise $1 billion in fresh equity capital to fund its operations and expansion. Here's a look at whether that will be enough to keep the hydrogen stock afloat.

Running out of power

Plug Power's stock plunged last November after revealing it had growing concerns about its ability to continue operating because of a liquidity crunch. The company was battling significant supply challenges in the North American hydrogen market. As a result, the company said at the time that it "is projecting that its existing cash and available for sale and equity securities will not be sufficient to fund its operations through the next twelve months." Plug planned to pursue several options to raise fresh capital, including issuing debt on the corporate level or tapping a loan program of the U.S. Department of Energy.

At the end of September, the company only had about $110 million of cash and equivalents on its balance sheet (along with an additional $682 million of restricted cash, available-for-sale securities, and equity securities). Meanwhile, its operations are burning through cash ($864 million in net cash used in operating activities during the first nine months). It's also investing heavily in capital projects (over $500 million through the third quarter).

Plugging into a fresh source of capital

Plug Power recently revealed that it entered into an agreement with investment bank B. Riley Financial for an at-the-market (ATM) offering of up to $1 billion in equity. The company would use any cash raised through this offering to fund its operations and capital projects.

However, unlike a direct secondary offering of shares that brings in a flood of new cash at once, an ATM program is a lot like its acronym. The company will go to the market and raise cash when it needs the money over the next 18 months. Under the terms of the agreement, it would only issue up to $30 million from share sales in any calendar week.

The company opted for this approach to limit the dilution to existing investors. Given the plunge in its stock price over the past year, Plug Power's market cap has fallen to around $1.6 billion. A $1 billion equity issuance all at once would therefore be highly dilutive to existing investors. By spreading out the sales, the company could potentially mute some of that dilution by selling more stock in weeks when shares are on the rise. The company also likely wouldn't have been able to complete a large block sale of $1 billion in stock at anything but a heavily discounted price.

Will that be enough?

Plug Power needs a lot of capital to continue operating. The company is targeting to invest $1 billion into green hydrogen projects annually for the next several years. Meanwhile, its operations are burning through cash.

Wall Street analysts expect the company to use about $1.5 billion in cash over the next two years. Its current projections suggest it won't start producing positive free cash flow until 2026 or 2027. Analysts estimate it will need to raise at least $750 million or more to bolster its liquidity over the next 12 months. It could potentially raise that amount through its ATM program.

However, unless its stock price miraculously recovers, those sales will significantly dilute existing investors, increasing its outstanding shares by around 60% at the recent share price. So the company will probably need to tap other capital sources to take some of the pressure off its stock price so that its ATM program isn't quite so dilutive. Those alternatives include issuing new debt, which could weaken its balance sheet, or bringing on one or more strategic partners to help fund some of its hydrogen developments. Finding a strategic partner would likely be the best outcome for shareholders since it would reduce its need to sell shares and preserve its balance sheet.

Still more work to do

Plug Power plans to sell stock over the coming months so that its liquidity doesn't run dry. However, those sales could put more downward pressure on its stock price, meaning the company will need to continue looking for ways to plug up its liquidity, ideally finding a strategic partner to help fund its capital projects. Until that happens, investors should steer clear of its stock. It could continue heading lower until there's more clarity on its liquidity situation.

[eastunder]

Plug Power to Provide Annual Business Update on January 23, 2024
January 16, 2024
LATHAM, N.Y., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced the access details for its January 23, 2024 business update conference call. During the conference call, Andy Marsh, the Company’s Chief Executive Officer, and Paul Middleton, the Company’s Chief Financial Officer, will provide a business update and answer questions.

Join the call:

Date: Tuesday January 23, 2024

Time: 8:30 am ET

Toll-free:877-407-9221 / [phone]

Direct webcast: https://event.webcasts.com/starthere.jsp?ei=1652371&tp_key=7aea09abd3
The webcast can also be accessed directly from the Plug homepage (www.plugpower.com). A playback of the call will be available online for a period of time following the call.

[eastunder]

Plug Power Starts Production of Liquid Green Hydrogen at its Georgia Plant
January 23, 2024 09:00 ET
| Source: Plug Power, Inc.

Landmark Achievement for Plug’s Vertically Integrated Green Hydrogen Ecosystem and the Largest Proton Exchange Membrane (PEM) Electrolyzer in the United States

Plant is a First-Hand Customer Showcase for Electrolyzer-Produced Hydrogen

LATHAM, N.Y., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, has started operation of the largest liquid green hydrogen plant in the U.S. market.

A truly unique accomplishment, this is the largest electrolytic liquid hydrogen production plant, and largest PEM electrolyzer deployment operating in the U.S., representing a landmark achievement in Plug’s build-out of a vertically integrated hydrogen ecosystem. The plant showcases Plug's own electrolyzer technology, demonstrating first-hand to customers its reliability in producing sustainable fuel.

Located in Woodbine, Georgia, the plant is designed to produce 15 tons per day (TPD) of liquid electrolytic hydrogen – enough to power approximately 15,000 forklifts per day. Through eight 5-megawatt (MW) PEM electrolyzers, water is separated into hydrogen and oxygen. The hydrogen gas is then condensed into liquid form at -423F to be delivered to customers’ hydrogen fueling stations through Plug’s logistics network using Plug cryogenic trailers.

This new facility will bolster Plug’s supply of liquid hydrogen currently being delivered to Plug’s pedestal customers for material handling operations, fuel cell electric vehicle fleets, and stationary power applications. Liquid hydrogen production, in addition to the on-going gaseous hydrogen production, is expected to positively impact Plug’s bottom line and provide an additional step change in fuel margin expansion.

The addition of this liquid green hydrogen production plant to Plug’s electrolyzer, fuel cell, and cryogenic equipment manufacturing facilities enables Plug to further its vision for building a vertically integrated green hydrogen ecosystem, a one-stop shop for producing, liquefying, storing, and transporting hydrogen. The continued build-out of Plug’s global hydrogen network allows customers to seamlessly integrate hydrogen into its operations across multiple industries.

Customer demand for green hydrogen has grown as a low-carbon energy source for hard-to-decarbonize industries, such as heavy-duty transportation, heavy manufacturing (steel, cement, aluminum, and chemicals), stationary power generation, and aviation. In addition, hydrogen-supportive policies in both Europe and the U.S. have improved the economic attractiveness of green hydrogen.

“We have achieved a historic milestone for Plug and the entire hydrogen ecosystem,” said Andy Marsh, Plug Power CEO. “Bringing this green hydrogen plant online demonstrates that we are the leading builder of global hydrogen infrastructure for supporting customer demand in decarbonizing their operations.”

Plug finished the plant at a rapid pace of 18 months, more than two times faster than the three-year industry standard for hydrogen plants. The location of the plant near I-95 (one mile away) and I-10 (20 miles away) enables easy access to commercial and industrial centers, including Plug’s pedestal customers throughout the U.S.

The Company has been operating a pilot gaseous hydrogen plant in Georgia using Plug’s 5MW electrolyzer platform for over a year now, supporting high pressure tube trailer filling for Plug as well as other customers. The company is doing substantial work on other U.S. based plants, including plants in Louisiana, New York and Texas.

About Plug

Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 60,000 fuel cell systems and over 180 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.

With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.

For more information, visit www.plugpower.com.

[eastunder]

Highly-shorted Plug Power stock is rallying today. Here's why
Senad Karaahmetovic
Published Jan 31, 2024 08:27AM ET

https://www.investing.com/news/stock-market-news/highlyshorted-plug-power-stock-is-rallying-today-heres-why-432SI-3288365

Highly-shorted Plug Power stock is rallying today. Here's why© Reuters. Highly-shorted Plug Power (PLUG) stock is rallying today. Here's why

(Updated - January 31, 2024 8:27 AM EST)
Shares of Plug Power Inc. (NASDAQ:PLUG) jumped more than 8% on Wednesday as bulls work to erase the year-to-date deficit (-17.1%).

The move higher comes after ROTH MKM analysts upgraded Plug Power's stock to Buy' from Neutral and doubled their price target on the stock to $9 per share.

This bullish stance stems from their confidence in the successful ramp-up at the company’s Georgia hydrogen plant.

“Our visit to the Georgia green hydrogen plant gives us confidence the facility is ramping smoothly and all major technical issues are handled, addressing our prior concerns about backlog and margin visibility,” analysts said.

“Today (31- Jan) is the third day of liquefaction, and we expect the first liquid hydrogen delivery from the facility takes place imminently. Full rate 15 TPD production should be confirmed in the next few weeks.”

They commended the management for their efficiency in building the largest electrolyzer in North America in half the time it would typically take for a legacy facility.

Plug Power has also adjusted its pricing strategy for hydrogen sales to align with procurement costs, a move expected to rapidly improve margins.

Contrary to some market concerns, analysts believe there is no hydrogen shortage and notes that Plug Power possesses "good flexibility" regarding near-term funding solutions.

PLUG remains one of the most shorted stocks with a short interest of float standing at nearly 30%.

[eastunder]

PLUG cpps @ 4.08 PreTrade w 3.73 close prior

Today Upgrade ROTH MKM Neutral ? Buy $4.50 ? $9

[eastunder]

PLUG cpps 4.24

Rueters announcing a corrected update on an older article I can't pull up. Not sure why correct it now?

Others reported it as a possibility not a given anyway.
_____________________________________________________

CORRECTED-UPDATE 2-Plug Power jumps on prospective govt loan, liquid green hydrogen production start (Jan. 23)
11:50 AM ET, 02/09/2024 - Reuters

(Corrects paragraph 1 of Jan. 23 story to say company "moving toward securing", not "has secured" government funding; corrects headline to add dropped word "prospective")

By Mrinalika Roy and Tanay Dhumal

Jan 23 (Reuters) - Plug Power said on Tuesday it was moving toward securing over $1 billion in government funding and has started producing liquid green hydrogen at its Georgia plant, sending the company's shares up about 20% in morning trade.

The hydrogen fuel cell firm said it has finalized a term sheet negotiation with the U.S. Department of Energy (DoE) for a $1.6 billion loan facility. The application has been submitted to the Credit Review Board for their final considerations and issuance of a conditional commitment, Plug Power added.

The company has been facing liquidity issues amid supply challenges in the liquid hydrogen market in North America, and had raised going concern doubts in November. It also planned a $1 billion equity raise earlier this month.

"This funding, when received, will support the development construction and ownership of up to six hydrogen production facilities, significantly advancing green hydrogen deployment in the United States," CEO Andrew Marsh said during an investor call.

"With our Georgia plant operational, and the Tennessee plant coming online, we expect a significant reduction in costs," he added.

Talking about the Georgia plant, Marsh said while "the construction took slightly longer than expected", the facility will bolster Plug's supply of liquid hydrogen being delivered to its customers for material handling operations, fuel cell electric vehicle fleets, and stationary power applications.

The plant, which the company said is the largest liquid green hydrogen plant in the U.S. market, is designed to produce 15 tons per day (TPD) of liquid electrolytic hydrogen.

"The DoE loan facility seems well baked, but we have to wait until the second half of 2024. Seems they are getting the finance options they need and wiggling out of a very tight spot," said Craig Irwin, an analyst at Roth Capital Partners.

As companies are moving towards their net-zero emission targets, hydrogen, a zero-emission gas at point-of-use, serves as both a fuel and as energy storage, helping them reduce their carbon footprint.

The company said the production is expected to positively impact its bottom line and provide an additional step change in fuel margin expansion. (Reporting by Mrinalika Roy and Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)

___________________________________________________________________

Back on that same date - January 23 - numerous articles (behind paywalls) all reiterated it similar to this

Hydrogen Company Plug Power Closes In on $1.6 Billion Loan

Energy Department Loan ‘Key’ for Plug Power’s Growth Plans

Plug Power Inc. surged the most in three years after the hydrogen company said it’s getting close to finalizing a $1.6 billion loan from the U.S. Energy Department, and it’s cutting spending to shore up the balance sheet.

Plug gained as much as 31% Jan. 23, the most intraday since January 2021, as the Latham, N.Y.-based company provided its annual business update. It also said an electolyzer production plant in Georgia is now operational, and another one in Tennessee is expected to open soon.

The government financing will be key for Plug’s growth plans. The company was notified Jan. 22 that the agency’s credit review board is evaluating the application. The rate will be no higher than 6.5%, and Plug Chief Financial Officer Paul Middleton said he expects it to be finalized by the third quarter. The company plans to use the money to support as many as six hydrogen production facilities.

“That lower-cost capital is incredibly helpful,” Middleton said during the update call.

While that will help the company’s long-term plans, it’s still facing a short-term cash crunch as it burns through capital to build out its hydrogen production capacity. The company surprised investors in November by posting worse-than-expected third-quarter earnings and warning that there was doubt it would be able stay in business. It disclosed Jan. 17 plans to sell as much as $1 billion in stock.

“Addressing the critical issue of cash management and resolving our going concern is now our foremost priority,” Chief Executive Officer Andy Marsh said on the call.

That may be resolved in the next few months, according to Colin Rusch, an analyst with Oppenheimer & Co.

“Plug addressed key concerns, notably on balance sheet resilience, operational cash burn, and reaching critical technology performance benchmarks,” Rusch wrote in a research note. “We believe the company will likely be able to address its going concern notice” in the first quarter.

The Energy Department said it can’t comment on loan applications.

Plug is helping lead the charge to promote hydrogen as a clean fuel. For years it specialized in forklifts and freight-handling equipment that ran on hydrogen fuel cells before it began focusing on supplying the gas as well as machines that split the gas from water.

Plug said Jan. 23 that fourth-quarter revenue will be about $200 million, well below the $378 million analysts are expecting, and the company will likely take a non-cash goodwill impairment charge of as much as $250 million. It also plans to cut cash spending by 70% from 2023, with reduced capital expenditure and lower investment in inventory.

Plug has received numerous offers to provide financing, but “they are not under terms that are interesting to the company,” Middleton said.

[eastunder]

PLUG

Cpps @ 4.13 (2.83)
Gap 3.86 3.07

 CP: 5000  4000 2350 4000 1000 / 6000  2350  1000  2350 3000  3000          
 NB: 1000  500  650  500  500  / 1000  650    0    650   500  500   
 WS: 1000  350  350  350  250  / 1500  350    0    350   350  350 
 T:  10     5    5    5    2   / 10     5     1    5      5    5 

PLUG

[eastunder]

Plug to Announce 2023 Fourth Quarter and Year-End Results 3-1 B
February 21, 2024 07:00 ET
| Source: Plug Power, Inc.

LATHAM, N.Y., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, will announce its 2023 fourth quarter results on Friday, March 1, 2024.

Join the call:

Date: Friday, March 1, 2024
Time: 8:30 am ET
Toll-free: 877-407-9221 / [phone]
Direct webcast: https://event.webcasts.com/starthere.jsp?ei=1655050&tp_key=5d9634a1a2
The webcast can also be accessed directly from the Plug homepage (www.plugpower.com). A playback of the call will be available online for a period of time following the call.

[eastunder]

PLUG cpps 3.80

After earnings and recovery from drop

[eastunder]

PLUG: Plug Power to see demand for hydrogen-based power backup systems from data centers
Reuters
Fri, Mar 1, 2024, 2:51 PM MST2 min read
https://finance.yahoo.com/news/plug-power-see-demand-hydrogen-215144309.html

March 1 (Reuters) - Plug Power said on Friday it expects demand for its green hydrogen fuel cell storage systems from data centers to pick up in the second half of 2025.

The company said due to restrictions of diesel engines and the need for continuous power supply, fuel cells that use green hydrogen, which is a zero-carbon energy fuel, could be used as backup power options for data centers.

"So when you look at the three major data center operators, Plug is engaged and planning some initial deployment and tests with all," Plug's CEO Andrew Marsh said on a conference call, without naming the operators.

"I don't think it's a 2024 event, I think it could be a late 2025 event where you start seeing some deployments at some scale."

Electricity demand in the United States is expected to boom from power-hungry artificial intelligence-based data centers, with some utilities reporting deals to bring the new load on in the next year or two.

With industry leaders such as Amazon, Microsoft and Google seeking to improve sustainability by reducing their carbon footprint and moving away from diesel usage, there could be increased demand for hydrogen in stationary business applications, said James West, analyst at Evercore ISI.

According to Boston Consulting Group, by 2030, the electricity needed to power generative AI platforms would be equivalent to the power required for about 5 million U.S. homes.

Plug Power in its fourth-quarter call also said it was close to finalizing on its billion-dollar loan facility with the U.S. Department of Energy.

The hydrogen fuel cell company has been facing liquidity issues amid supply challenges in the liquid hydrogen market in North America. But Plug on Friday cleared its going concern doubts, which it had raised in November. (Reporting by Seher Dareen in Bengaluru; Editing by Shilpi Majumdar)

[eastunder]

3 Reasons Wall Street Remains Worried About Plug Power
Matt DiLallo, The Motley Fool
Wed, Mar 6, 2024, 3:10 AM MST4 min read

https://finance.yahoo.com/news/3-reasons-wall-street-remains-101000852.html

Plug Power (NASDAQ: PLUG) has taken a notable step back from the precipice of financial ruin. Last fall, it issued a dire warning that it could run out of money within a year. That's no longer true after the company made several moves to shore up its liquidity.

However, Wall Street analysts still have concerns about Plug Power's future. Here's a look at three reasons they remain worried about the hydrogen stock.

It's still burning through cash

Plug Power is spending heavily to build its hydrogen ecosystem. As a result, it's posting heavy losses and burning through cash. Last year, Plug reported over $1 billion in losses, more than its revenue. It expects to continue losing money for the foreseeable future.

That has some finance pros concerned. Jefferies analyst Dushyant Ailani recently wrote in a note to clients that "cash generation is going to be limited in our view given the capital intensity of green hydrogen build outs." He estimates that the company will continue burning cash through 2028.

Truist Securities analyst Jordan Levy also has cash burn concerns. He recently wrote that Plug Power has "a long way to go for it to hit its 70% cash-burn-reduction [target]." That drives his view that the company will need to sell a lot of stock under its $1 billion at-the-market plan, which would significantly dilute existing investors at the current price.

Revenue isn't growing as fast as expected

JPMorgan analyst Bill Peterson pointed to a different issue in his recently updated commentary on the company. He noted that Plug Power will only see modest revenue growth this year. That's a concern because supercharged revenue expansion is the primary catalyst for the stock. It expects to reach $6 billion in revenue by 2027 and $20 billion by 2030.

However, due to challenging market conditions, the company's revenue hasn't been ramping up as quickly as expected. For example, while revenue surged 27% last year to $891.3 million, it was well below the analysts' consensus estimate of $915.6 million. Revenue also missed Plug's initial outlook of $1.2 billion for the year.

Plug Power's revenue needs to grow at an accelerated rate so that it can achieve the scale it needs to become profitable. Achieving profitability would help reduce its cash burn rate and the need to sell stock to fund its continued expansion.

Margins remain weak

Another problem that Peterson pointed out was Plug's margins. He wrote, "We think a 'step change' margin improvement is unlikely to occur this year on the basis of internal hydrogen supply alone."

Levy also commented on the company's margin issues. He wrote, "Along with continued margin pressure from fuel margins, equipment/infrastructure sales margins also dipped heavily into negative territory during the quarter as both electrolyzer and fuel cell sales disappointed into [year-end]."

Plug has taken an additional step to improve its margins by cutting costs. Last month, it launched a plan to reduce its annual expenses by $75 million. It plans to consolidate operations, reduce its workforce, and take other measures to save money.

However, the "step change" in margin improvement Peterson wants won't come from cost cuts alone. Plug needs hydrogen market conditions to improve. It also needs to continue expanding its business to benefit from the economies of scale it believes it can achieve as a larger-scale hydrogen producer. Scale advantages include negotiating lower costs with suppliers as it buys in bulk. The company believes it can reach a gross margin of 32% on its 2027 revenue forecast and a 35%-plus gross margin by 2030 as it hits $20 billion in revenue. However, it currently has a long way to go.

Plug Power is still a risky bet

Plug Power believes it can capitalize on the growing hydrogen market by rapidly expanding its capacity. This expansion should accelerate revenue growth, improve margins, and lower its cash burn.

However, those positive catalysts have proven elusive, which is why analysts remain rightly concerned about the company's future. So, while it has lots of upside potential if it can deliver on its promised growth, it remains risky. As a result, investors might want to continue watching the hydrogen stock to see if it can start delivering on its promise before buying shares.

[eastunder]

PLUG cpps 4.02 on March 10, 2024




__________________________________________________________

Plug from January 29, 2024

Green Hydrogen Pioneer Plug Power to Build 6 Plants With Big US Loan
By Mary B. Powers, Debra K. Rubin

https://www.enr.com/articles/58068-green-hydrogen-pioneer-plug-power-to-build-6-plants-with-big-us-loan

The U.S. Energy Dept. is set to finalize by the end of March a $1.6-billion loan to clean energy technology firm Plug Power Inc. to build six U.S. green hydrogen production plants, company executives told analysts and investors on Jan. 23. Construction would start in the second half of 2024, with plans to produce 500 tons per day domestically by the end of 2025.

“The loan can catalyze our ongoing projects … expected to generate over 200 tons of hydrogen daily,” said CEO Andy Marsh. The DOE loan and January opening of the Latham, N.Y,-based firm’s Georgia hydrogen production plant made some analysts less concerned about the firm’s recently disclosed financial statements.

Plug Power is a corporate sponsor of five of seven U.S. hydrogen hubs DOE selected last year to share a total of $7 billion in federal funding from the 2021 bipartisan infrastructure law.

Citing supply chain constraints, the company said in a November federal filing, “there is no assurance that our hydrogen production will scale at the rate we anticipate or that we will complete hydrogen production plants on schedule." The firm also speculated it could lack “sufficient capital to fund our operations through the next twelve months.” BMO Capital analyst Ameet Thakkar noted an “arduous path” for the firm until its federal funding is in place.

But other analysts were more positive and Marsh was optimistic, referring to the filing as a short-term technical requirement. “While the industry growth over the past few years hasn’t met our initial expectation, we remain optimistic about its future, especially with increasing government support," he said. "The essential role of hydrogen in addressing climate change is undisputed.”


Startup in Georgia

The Woodbine, Ga.. plant is a large proton exchange membrane electrolyzer coupled with a liquefaction plant that will initially produce 15 tons of fuel per day, which is expected to double. The company plant in St. Gabriel, La., under way in a joint venture with chemical manufacturer Olin, is set to start operation later this year. Olin is North America’s largest producer of electrolytic hydrogen, Plug Power said.

Plug Power CFO Paul Middleton, however, told analysts that US Treasury Dept. proposed rules last month on federal tax credits for hydrogen projects were not as favorable as expected. Marsh termed them "disappointing" but expected they would 'loosen up" as final rules are negotiated, he told Bloomberg TV.

The added cost of construction for the Georgia plant was a source of concern, Marsh told investors. “Part of that was really difficult, because it was a first of its kind," he said, adding "we certainly made design changes." Marsh said the EPC [contractor] '"was not willing to commit to how much it would cost." Project construction took 18 months to complete. S&B Engineers and Constructors Ltd. was the EPC contractor.

The final plant cost was not disclosed and not provided by story posting time.

Plug Power expects to get a commitment on construction cost for its Texas plant, being built by Kiewit, said Marsh, who added that design changes would actually lower the figure. The 120-MW facility, under way for New Fortress Energy near Beaumont, is that company's first investment in green hydrogen. It would produce 50 tons per day initially and is scalable to 400 MW, Plug Power said in a 2022 announcement,

He expects that expansion of the Georgia plant's size will cost 40% less, and that the price of its hydrogen would be one-third of what it would be if purchased from a third party. Marsh estimated that figure at about $10 million per ton.

Capital investment in the 45 ton-per-day plant in Texas and 74 ton-per-day plant in New York has slowed “until we find the right financing solution,” CFO Paul Middleton said during the call. The latter project, in Genesee County, N.Y., is part of what Marsh said during a November 2023 earnings call was an estimated $678-million overall investment in the state. On the latest call, he said Plug Power selected an EPC contractor for the electrolyzer but did not identify the firm.

Resolving Plug Power cash management issues is its “foremost priority,” but growth is critical, said the CEO on the January call. "We're focusing on growth that can enhance cash generation,” he noted.

Amazon commissioned in December a 1-MW Plug Power electrolyzer system at a Colorado fulfillment center—the retaii giant's first—that is set to produce green hydrogen for more than 225 hydrogen fuel cell-powered forklift trucks at the site. Hydrogen will be compressed on site and stored. The energy firm said hydrogen used at Amazon sites now is produced offsite, liquified and delivered by truck to an on-site storage and dispensing system.

“We’re excited about our ability to produce hydrogen at Amazon facilities through this partnership with Plug,” said Asad Jafry, firm director of global hydrogen economy. "On-site production will make the use of hydrogen even more energy efficient for certain locations and types of facilities.”

Plug Power also announced last year it would build three electrolyzer facilities in Finland, at an estimated cost of $6 billion and capacity of 2.2 GW, to produce about 850 tonnes per day of green hydrogen and ammonia for the European market by 2030.

Plug Power said Technip Energies is engineering and technology contractor for the projects, with a final investment decision in 2025 or 2026.

"These projects are expected to represent some of the largest investments in the European [hydrogen] market," the firm said.

[eastunder]

PLUG Stock: Chuck Schumer Just Announced a $75 Million Boost to Plug Power
Plug could receive another check from the U.S. DOE later this year

https://investorplace.com/2024/03/plug-stock-chuck-schumer-just-announced-a-75-million-boost-to-plug-power/

1h ago · By Eddie Pan, InvestorPlace Financial News Writer

Plug Power (PLUG) is set to receive $75.7 million from the U.S. Department of Energy for two projects.
The funding will help the green hydrogen company increase proton exchange membrane (PEM) production and cut costs.
PLUG stock is down by more than 25% so far this year.

It’s a big day for Plug Power (NASDAQ:PLUG), as Senate Majority Leader Chuck Schumer announced that the U.S. Department of Energy (DOE) will provide $90.4 million in federal funding to three clean hydrogen companies as part of its Clean Hydrogen Manufacturing, Recycling and Electrolysis programs. This funding will help Plug increase its production of hydrogen and hydrogen equipment.

Of the $90.4 million, Plug will receive $75.7 million for two projects. The other two companies are Ionomr Innovations and Ecolectro.

“With this federal funding, Plug Power and other cutting-edge companies will be able to increase production capacity and spark new innovation to reach the next frontier of clean hydrogen manufacturing and research, all while supporting good paying clean energy jobs and boosting the fight against climate change,” said Schumer.

Of the $75.7 million, $45.7 million will go toward developing automation capabilities at Plug’s proton exchange membrane (PEM) stack manufacturing plant in Rochester, New York. The funding will help Plug increase PEM output, lower production costs and automate the inspection process using machine learning.

The remaining $30 million will go toward meeting a cost goal of $80 per kilowatt for 100,000 heavy duty fuel cell systems per year by 2030, as well as automating the production of membrane electrode assemblies (MEAs).

On top of that, Plug could receive another check from the DOE this year. In January, Plug announced that it was in the process of receiving a $1.6 billion loan with a maximum rate of 6.5%. Chief Financial Officer Paul Middleton expects the loan to be closed by the third quarter.

The funding follows the resolution of a going concern warning, which was announced in Q3 2023 and subsequently removed during Q4.

Cutting costs is a major goal for Plug Power. While sales grew by 27% to $891 million last year, net loss accelerated by 89% to $1.36 billion. The loss was bolstered by a $249.48 million goodwill impairment charge. During Q4, the price of PLUG stock dipped below its book value, triggering the impairment review.

[eastunder]

PLUG Gap 3.08

[eastunder]

PLUG cpps 3.33
(Hey! That's half of 666 ;)

(Which should be my first warning. LOL)

sandbox/w quantity

[eastunder]

Plug Power Stock’s Wild Ride: Brace for Impact or Bail Out Now?

By Rich Duprey, InvestorPlace Contributor
https://investorplace.com/2024/04/plug-power-stocks-wild-ride-brace-for-impact-or-bail-out-now/

The hydrogen fuel-cell maker has long failed to make good on its promises

Plug Power (PLUG) stock continues to burn through cash while promising investors profits are coming.

Despite having big name clients, the hydrogen fuel cell manufacturer can’t turn sales into profits.

Investors should wait on the sidelines for management to follow through before committing more money.

Plug Power stock (NASDAQ:PLUG) is in a difficult spot. The company obviously has a viable business and product. It has a list of top-name partners either using its products and services or helping it build out a vertical supply chain.

On the other hand, Plug Power stock can’t make money. It is selling its fuel cells at a significant loss resulting in negative cash flows as it burns through the cash it has on hand. It’s why it was forced to include a going concern notice last year, though it subsequently removed the wording from its annual report.

Investors have been the losers. Plug Power stock is down 30% in 2024, off 67% over the past year and the hydrogen fuel cell leader has lost over 95% of its value from the all-time high hit in 2021. During that time shareholders have suffered through significant dilution as Plug issued ever more shares. Between 2018 and 2023, PLUG stock’s share count grew from 218 million to over 595 million.

It’s past time investors looked dispassionately at their company. Plug Power is not in a good spot and despite its cheap valuation, the stock is not a buy.

Profits are always just over the next hill

Plug Power generated nearly $1 billion in revenue in 2023, a record for the company, and 27% higher than the year-ago figure. But net losses nearly doubled to $2.50 per share, though they were caused in part by investing in growth and expansion projects. CEO Andy Marsh says 2024 will be the year Plug Power gets its financial house in order.

“Recognizing the past challenges with cash management, we are dedicated in 2024 to bolstering our financial profile. Our commitment to driving forward the hydrogen economy remains unwavering.”

That’s fine, but investors have heard that refrain before. Last year Marsh was confident 2023 was the year it would achieve break-even margins. He also forecast generating $2 billion in sales on its way to $20 billion in revenue(!) by 2030. Shareholders have likely learned to discount the grandiose claims management makes at this point.

Yet this is a real business

As noted at the start, Plug Power stock is not some vaporware business. Its fuel cells work in the warehouses of Home Depot (NYSE:HD), Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN). Walmart, in fact, accounts for over 23% of Plug’s revenue. That includes a warrant charge of $5.9 million resulting from a 2017 agreement between Plug, the retailer, and Amazon to purchase some 55.3 million shares of company stock over a period of years.

The warrants are recorded as a reduction in revenue so the contribution amount is actually higher. At the end of last year, almost 35 million of Walmart’s warrant shares had vested. All of Amazon’s 55 million warrant shares have vested. Plug’s second-largest customer accounts for almost 11% of total revenue.

So it’s not as though Plug’s customers aren’t invested in its success. It’s just that Plug Power can’t seem to turn into a profitable business.

Wait for PLUG stock to make good

Whether or not Plug Power is pinky-swear level ready to make 2024 its year to turn around, investors shouldn’t hold their breath. They’ve been promised this for so long they ought to be numb to management’s entreaties at this point.

As hard as it may be to let go, 2024 should be the year shareholders sell their stock and wait for Plug Power to make good on its promises. Only then should investors be willing to put their money into play again. Until then, Plug Power stock can only be considered a sell.

[eastunder]

Will Plug Power Survive 2024?

Story by Geoffrey Seiler • 2d • 4 min read
https://www.msn.com/en-us/money/companies/will-plug-power-survive-2024/

It's been a difficult few years for Plug Power (NASDAQ: PLUG), which has seen its stock fall from over $70 in early 2021 to under $4 today.

In November 2023, when it filed its 10-Q for the third quarter, the company issued what is referred to as a "going concern" warning projecting that it may not have enough cash to fund its operations and capital expenditure requirements over the next 12 months. Such warnings are often a prelude to a company filing bankruptcy. However, Plug Power removed the warnings in its 10-K filing in late February.

Let's take a look at Plug Power and see if the company can turn itself around, or if bankruptcy could still be in the cards.

A struggling business

Plug Power is trying to become an end-to-end hydrogen solutions company that offers everything from hydrogen production to storage to hydrogen fuel cells. Currently, the company's main product is a fuel cell used in forklifts and other material handling equipment that's used in high-volume warehouses and distribution centers. It counts well-known companies such as Amazon, Walmart, and Home Depot among its clients.

The problem with its business model is that Plug Power sells the hydrogen fuel to its customers to run these fuel cell-powered forklifts at huge losses. This has led the company to have negative gross margins, and even larger operating losses. As a result, the company has been bleeding cash. In 2023, it had operating cash flows of negative $1.1 billion and it consumed $1.8 billion in total cash including capital spending.

Building green hydrogen production facilities

Plug Power's current business model is not sustainable, which is why the company began looking to build out its own green hydrogen production facilities. The goal is that by producing its own green hydrogen, the company would be able to sell hydrogen fuel to its customers profitably, instead of selling the fuel at a loss.

The problem the company has run into is that the cost to build hydrogen production plants is quite high, and new projects often come with delays. Plug Power was initially aiming to have five hydrogen production facilities up and running by the end of July 2024. Currently, its Georgia plant is the only one operational, while a plant in Tennessee is expected to come online soon. The Georgia plant would be able to handle around 20% to 25% of its customers' material handling fuel demand, with the Tennessee plant handling about another 15%. The company has also formed a joint venture with Olin Corporation to help fund its plant in Louisiana.

Meanwhile, Plug Power is slowing down its investments in facilities in New York and Texas until it can find better financing options. It also plans to reduce overall capex to help lower its cash burn by 70% compared to 2023. It is looking for low-cost financing from the Department of Energy (DOE) to finish its facilities in New York and Texas. In March, the DOE granted the company nearly $76 million toward building the plants, but Plug Power's still waiting on a $1.6 billion loan that it had applied for to finish the projects.



Ambitious plans and threat of bankruptcy

Plug Power had previously set out ambitious plans of generating $20 billion in revenue with 35% gross margins in 2030. However, management has lost a lot of credibility with investors given the continued push-out of its hydrogen plants coming online and the issuance of a "going concern" warning.

Moving forward, the company should survive through at least the end of this year. It was able to secure a $1 billion at-the-market security issuance (ATM) agreement to sell newly issued shares through or to financial services firm B. Riley, which will add additional cash to its coffers. Meanwhile, if the Georgia and Tennessee hydrogen plants run smoothly, that should help improve its weak fuel margins. If the company receives the DOE loan it applied for, that will only improve its liquidity more and allow it to continue to build its remaining two hydrogen facilities.

That said, Plug Power remains a very risky stock to own at this point. The company has yet to prove it can generate positive gross margins, let alone profits or cash flow. At the same time, it has plans to further dilute investors and add to its debt load. This is a stock best left to watching from the sidelines.

[eastunder]

1 Reason Goldman Sachs Analysts Are Skeptical of Plug Power Stock
https://finance.yahoo.com/m/daa62c0d-d7d1-3494-ab29-0a3584d075f5/1-reason-goldman-sachs.html

Ryan Vanzo, The Motley Fool
Thu, May 9, 2024 at 5:18 AM MDT·4 min read


If you listen to Plug Power's (NASDAQ: PLUG) management team, there's a ton of long-term upside to the company's business. Trillions of dollars are being invested into renewable technologies right now, including hydrogen fuel cells, which Plug Power specializes in. There's a case to be made that the company is primed to ride a tidal wave of investor interest.

Analysts at Goldman Sachs aren't so sure. In fact, according to a new research piece, there's one factor in particular that they are worried about.

Goldman Sachs analysts are worried about this 1 thing
Plug Power is all in on hydrogen fuel cell technology. The company was founded in 1997 for this purpose. Hydrogen fuel cells are electrochemical units that combine hydrogen and oxygen atoms to produce energy. Hydrogen fuel cells are already being used on a small scale in power plants, vehicles, spacecraft, computers, and cellphones. The issue isn't whether the technology works, but whether it works at scale at an economic price point.

According to the U.S. Department of Energy, "To be competitive in the marketplace, the cost of fuel cells will have to decrease substantially without compromising performance." When might costs fall enough to make hydrogen a viable fuel source for major parts of the world economy? It's hard to say, but there's a good chance this tipping point won't occur this decade.

Some research says that, even assuming regulatory tailwinds like increased subsidies and a carbon tax, hydrogen fuel cells may not be competitive until the 2030s. According to global consultancy McKinsey, "Industry is projected to drive the majority of clean hydrogen uptake until 2030, followed by a wider uptake in new applications by 2050." So there will be growth in demand this decade, but the biggest growth drivers for hydrogen fuel will be in the decades to come.

This brings us to Goldman Sachs and its recent research note on Plug Power stock. The firm's forecast claims that investors will remain skeptical of the longest-duration pockets of the equity market. Basically, what analysts are saying is that companies whose cash flows are far off into the future will struggle in today's market.

This makes a lot of sense. With both economic and interest rate uncertainty, these far-off cash flows will be extremely sensitive to shifts in investor expectations. Goldman Sachs estimates that Plug Power has an equity duration of 25.8 years. This is roughly the weighted average of the company's expected cash flows.

"Higher cost of capital has led investors to scrutinize unprofitable or highly levered equities," Goldman Sachs analysts conclude. That will be a problem for Plug Power. Its capital expenditures are on the rise as the firm attempts to scale its operations. The biggest demand drivers for its products, meanwhile, may still be years or even decades away. Plug Power may be tapping a potentially huge market, but the gap between today and when that market materializes may be too large in a market where the cost of capital is high and investors are wary of betting on distant cash flows.

Is Plug Power stock a buy, hold, or sell?
There's no doubt that demand for hydrogen fuel cells is set to grow in the decades to come. Last year, an estimated $1.7 trillion was invested in clean energy initiatives. But the vast majority of that money was dedicated to energy sources that are already economically viable, like wind and solar. Hydrogen may see its day in the sun, but it won't be in 2024. It may not even be this decade.

Even if Plug Power does everything right, it may struggle to survive financially until demand drivers pick up meaningfully. Already, the company is massively diluting shareholders through a $1 billion share issuance program, and just last year it issued a going concern notice -- that's an accountant's way of warning that a company may soon go insolvent.

Plug Power is stuck between a rock and a hard place. It's currently struggling financially, yet its biggest demand drivers won't appear anytime soon. For this reason, it's likely best to stay away from this volatile stock.

[eastunder]

PLUG finally secures 1.66 billion loan

Gap up 2.96

[eastunder]

PLUG cpps 2.61

[eastunder]

Plug Power Inc. Announces Pricing of Public Offering of Common Stock at 2.54
July 19 2024 - 7:12AM

Yesterdays close 2.92, offer at 2.54, and now
cpps 2.46 as should be expected.




Plug Power Inc. (“Plug Power”) (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced the pricing of its previously announced underwritten public offering of 78,740,157 shares of its common stock at a price to the public of $2.54 per share. The offering is expected to close on or about July 22, 2024, subject to market and other customary closing conditions. In connection with the offering, Plug Power has granted the underwriters a 30-day option to purchase up to an additional 11,811,023 shares of common stock at the public offering price, less the underwriting discount.
The gross proceeds to Plug Power from the offering, before deducting the underwriting discount and other offering expenses payable by Plug Power, are expected to be approximately $200 million. Plug Power intends to use the net proceeds from the offering for general corporate purposes.

[eastunder]

Plug Power Shares Sell Off on Stock Offering. Should You Buy on the Dip?
Geoffrey Seiler, The Motley Fool
Sun, Jul 21, 2024, 4:20 AM MDT5 min read

https://finance.yahoo.com/m/c5bade22-2322-3d6c-9100-63105d04cb6d/plug-power-shares-sell-off-on.html

Shares of Plug Power (NASDAQ: PLUG) were sinking after the hydrogen fuel cell producer announced a secondary stock offering to help it raise cash. The downward move in the stock only added to its recent woes, with its price now plunging over 75% in the past year.

Let's look at the energy company's secondary offering and why the timing of this announcement likely is not good for the stock.

Plug Power needs to raise more cash
Plug Power announced last week that it would sell $200 million worth of shares in a public offering -- selling 78,740,157 shares at a price of $2.54 per share. That was an over 13% discount to its closing price of $2.93 before the announced offering. The offering (to be completed by Monday, July 22) increased its shares outstanding by about 10.6%.

The company also updated its cash balance for the quarter ending in June, noting it had $62.4 million in cash and equivalents on its balance sheet and restricted cash of approximately $956.5 million. At the end of the first quarter in March, it had $172.9 million in cash and equivalents on its balance sheet and $995.2 million in restricted cash. Plug Power's restricted cash stems from prior sale/leaseback agreements that will be released over the lease term, as well as having some letters of credit backed by security deposits.

The update indicates another quarter of substantial cash burn for the company, which has been struggling with a business model that has negative gross margins. This stems from Plug Power providing hydrogen fuel to its customers below its costs to acquire the fuel, although last quarter, it even sold its equipment at negative gross margins.

In order to help improve its business model, Plug Power has sought to build its own hydrogen plants in order to lower costs and be able to make a profit on its hydrogen fuel sales. Building hydrogen plants is not cheap, though, and the company has also run into some construction delays.

Currently, it has two plants operational, with a third expected to be completed by the end of this year. However, when fully ramped up, these plants are still expected to meet only about 65% of where Plug Power sees demand headed. In May, the company received a conditional commitment for an up to $1.66 billion loan guarantee from the U.S. Department of Energy (DOE), which would go a long way in helping the company finance its remaining projects. However, the potential loan has been the subject of scrutiny, with U.S. Sen. John Barrasso, R-Wyoming, a ranking member of the Senate Committee on Energy and Natural Resources, asking the loan to be investigated before being approved.

If the DOE loan is not approved, the company would have other options; however, these financing costs would most likely come at a higher cost in the form of more dilutive equity raises or higher-interest loans. In addition, traditional lenders may not want to finance the company given the current state of its business and cash burn.

Is it time to buy the dip in Plug Power?
At this point, buying the dip on Plug Power is probably not a good idea. Plug Power continues to burn through cash and needed the proceeds from the stock offering to bolster its dwindling cash position.

The time of the offering, meanwhile, is not ideal. If the company was going to report strong Q2 results and offer encouraging guidance, it would have been best served to have done the stock offering after it reported these results when its stock could have been at a higher price.

Plug Power has not yet announced its earnings date, but last year it reported its Q2 results on Aug. 9, so its earnings report is not that far away. The updated cash position already indicates that the company had another big quarter of cash burn, which means gross margin improvements may not have materialized.

Plug Power previously said it expected its hydrogen business to be near gross margin breakeven in the fourth quarter. If it walks back that guidance, the stock could still have a lot more room to fall from here.

At this time, Plug Power remains a very speculative stock. If the company gets its low-cost government loan, builds out its hydrogen plants, gets gross margin positive, and turns profitable, the stock could have a lot of upside. However, a lot has to go right for that to happen. As such, I think it is best to continue to stay on the sidelines.

___________________________________________________________________

5-14-24 sec filing on that loan

https://www.sec.gov/ix?doc=/Archives/edgar/data/1093691/000110465924060895/tm2414372d1_8k.htm

PLUG RECEIVES $1.66 BILLION CONDITIONAL COMMITMENT LOAN GUARANTEE FROM DEPARTMENT OF ENERGY FOR GREEN HYDROGEN DEVELOPMENT PIPELINE

Loan guarantee will bolster the buildout of Plug’s green hydrogen plant network across the United States, driving rapid advancement of the hydrogen economy

LATHAM, N.Y., May 14, 2024 -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, received a conditional commitment for an up to $1.66 billion loan guarantee from the Department of Energy’s (“DOE”) Loan Programs Office (“LPO”) to finance the development, construction, and ownership of up to six green hydrogen production facilities.

The production facilities, which will be selected for financing in accordance with procedures to be set forth in definitive documentation with DOE, will be built across the nation and supply major companies, including Plug’s existing customers, with low-carbon, made-in-America green hydrogen. The hydrogen generated will be used in applications in the material handling, transportation, and industrial sectors.

“Green hydrogen is an essential driver of industrial decarbonization in the United States,” said Plug Power CEO Andy Marsh. “Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants.”

Marsh added, “We appreciate the partnership with the DOE Loan Programs Office and are pleased to have worked through an intensive due diligence process. The loan guarantee will prove instrumental to grow and scale not only Plug’s green hydrogen plant network, but the clean hydrogen industry in the United States.”

Plug, the leading commercial-scale manufacturer of electrolyzers, currently operates the largest proton exchange membrane (PEM) electrolyzer system in the United States at its Woodbine, Ga., hydrogen plant. Plug’s current green hydrogen generation network now has a liquid hydrogen production capacity of approximately 25 tons per day.

Plug’s green hydrogen production plants utilize the company’s own electrolyzer stacks manufactured at its state-of-the-art gigafactory in Rochester, NY, and Plug’s liquefaction and hydrogen storage systems engineered at its facility in Houston.

DOE’s support for Plug’s green hydrogen projects represents a major milestone in the U.S.’s commitment to advance the development of large-scale hydrogen production, processing, delivery, and storage. It also underscores the application of green hydrogen to help meet decarbonization goals across multiple sectors of the economy.

While this conditional commitment represents a significant milestone and demonstrates the DOE’s intent to finance the project, certain technical, legal, environmental and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee.

LPO works in support of President Biden’s ambitions to drive growth in US manufacturing and innovation, create jobs, and build a clean energy economy that will address climate change and make communities more resilient.

Plug’s projects under the loan will adhere to the Biden Administration’s Justice 40 Initiative. This process includes gathering input from local labor, workforce, and economic development organizations in addition to first responder and non-profit organizations. The plants are expected to create good-paying jobs accessible to a diverse talent supply and help develop workforce skills needed to drive the transition to a clean energy economy.

LPO’s Title 17 Clean Energy Financing Program, which supports innovative energy and supply chain projects and projects that reinvest in existing energy infrastructure, will provide the financing to Plug.



About Plug



Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.



With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.



For more information, visit www.plugpower.com.

[eastunder]

PLUG current pps 2.51

Plug Power announced last week that it would sell $200 million worth of shares in a public offering -- selling 78,740,157 shares at a price of $2.54 per share. That was an over 13% discount to its closing price of $2.93 before the announced offering. The offering (to be completed by Monday, July 22) increased its shares outstanding by about 10.6%.

[eastunder]

PLUG

7/21/24

2.51

Plug Power(Nasd: PLUG)

SEC, nasdaq, ShortSqueeze

Finviz, StockTA, Stoxline,