Plug Power – 1 billion US$ turnover 2024?

DHL Express has ordered 100 H2 Panel Van with fuel cell systems from Plug in spring 2019, delivery starts 2020
DHL Express has ordered 100 H2 Panel Van with fuel cell systems from Plug in spring 2019, delivery starts 2020, © DHL

Full-bodied it comes from the company Plug Power: In 2024, the company aims to exceed the US$ 1 billion sales hurdle and generate pre-tax profit of US$ 170 million. But there’s still a long way to go. First of all, it was possible to increase the billings (new bookings) by a good US$ 61 million in the third quarter and the annual turnover is expected to be between US$ 235 and 245 million.

The loss in the third quarter of US$ 0.08 per share – unadjusted – did not live up to expectations, but Plug is well on its way.

In the meantime, the second of four expected ground-breaking reports was published in 2019, according to which DHL (StreetScooter) and the French energy supplier Engie are now working together and the first order for US$ 6 million is already in the books. Another is considered to be safe and will probably flow into the current fourth quarter. At the same time, Plug was also able to win Fiat Chrysler as a customer in the automotive industry. BMW, VW and others already are. 240 systems with an estimated order volume of US$ 10 million were launched.

As far as the procurement of liquid hydrogen is concerned, Plug has won United Hydrogen as supplier of these consumables and expects a good margin increase. In my opinion, in the long run it will be the price for hydrogen anyway, which is the basis for sustainable profit growth for Plug. Furthermore, it remains unclear to me how the outstanding option rights/warrants granted to Amazon and Walmart will be accounted for. It is said to be 100 to 110 million units. (Are the approx. 40 million shares sold short related to this as hedge?) This is important to know because it could lead to high quarterly balance sheet fluctuations, depending on the share price.

read more in H2-international February 2020

Risk warning

Every investor must always be aware of his own risk assessment when investing in shares and also consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid-caps, i.e. they are not standard stocks and their volatility is also much higher. This report is not a buy recommendation – without commitment. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on a medium- and long-term valuation and not on a short-term profit. The author may be in possession of the shares presented here.

Author: Sven Jösting, written beginning of December 2019

Leave a Reply