Regardless of the many good news and developments around hydrogen, there must of course also be a critical consideration of the aspects that may, for example, hinder or delay rapid build-up of production capacity. In addition to adverse influences due in part to misunderstood or counterproductive regulatory measures (EU/Germany) are aspects such as the shortage of skilled workers, supply chain problems and financing.
The shares of Weichai Power could not escape the negative trend in the fuel cell sector. They suffered from the lockdown in China, but now we can see a strong upward trend again.
FuelCell Energy should actually have generated a quarterly turnover of over 30 million USD in the second quarter, ending April 30th (fiscal year), but it was by then only about 16 million USD with a stated loss in the amount of about 31 million USD, or minus 0.08 USD per share. The management board nevertheless believes that they are on track to achieve a turnover of 300 million USD by 2025, and 1 billion USD by 2030. The order backlog was almost unchanged at about 1.3 billion USD. In the bank lies a formidable 490 million USD, for which a multitude of share placements (64 million new shares) is responsible – in proportion to the stock exchange value of 1.4 billion USD, a healthy basis, even if the question arises as to how these share placements were justified.
Now it has come to the final step with the loss-making Siemens Gamesa: Siemens Energy will fully integrate the 67.1% subsidiary, as was to be expected. The parent company is buying the remaining shares via a takeover bid for 18.05 EUR per share. As interim financing, a loan in the amount of 4 billion EUR was taken, which will surely be refinanced through the issuance of treasury shares – there’s talk of up to 2.5 billion EUR. Now, there can be – as similarly put in some commentaries – a crackdown, as not all figures at the subsidiary were so transparent and some calculations are now being reconsidered.
Huge news has reached us regarding Plug Power: H2 Energy Europe has contracted Plug for an electrolysis capacity in the amount of 1 GW. A complex is to be built in Denmark and the regenerative electricity generated via wind power. The goal is to produce 100,000 tonnes of green hydrogen per year, which is to be used primarily in hydrogen-powered trucks, specifically to fuel 150,000 of them per day.
Hyzon Motors was able to close the first quarter with a low stated loss of minus 0.03 USD per share. At the end of the quarter, cash and cash equivalents amounted to about 407 million USD. This should be evaluated in relation to the stock market valuation of about 1 billion USD. The build-up of capacity is proceeding according to plan. So 10 to 15 trucks for testing will be delivered to customers by the end of the year. A total of around 300 to 400 commercial vehicles are to be delivered in 2022. It is said that a variety of customers is involved, among them in China.
The expansion of the company is proceeding according to plan. Prototypes will be delivered so that customers can familiarize themselves with the vehicles (battery-electric and hydrogen-powered). The first successes can be reported: ten MCTs (Mobile Charging Trailers) have already been delivered (1.9 million USD in sales), which can fully charge battery-electric trucks in a hundred minutes.
It’s been over a year now since Burckhardt Compression has been discussed here. In the meantime, the share price rose from 300 CHF to over 500 CHF, with a reaction (profit-taking?) occurring only recently. Shares will continue to move in accordance with the figures and prospects: Order volume rose sharply by 44.3 percent from the previous year to 1 billion CHF. Turnover in 2021 amounted to 650.7 million CHF and is to reach (planned) 720 to 760 million CHF this year, far outpacing the 700 million CHF originally targeted. Shareholders can rejoice, as they will see a planned 15.4% dividend increase to 7.50 CHF, if the proposal of the board is accepted. Basis is an increase in earnings per share to 14.82 CHF from 13 CHF, which corresponds to an impressive payout ratio of nearly 50 percent. Especially from markets related to hydrogen, great growth opportunities are expected. With 242.9 million CHF in equity and thus a ratio of 29 percent, the company is well positioned.
The future prospects of Bloom are fully intact and unchanged (over 30% growth p. a.) and allow for a very positive outlook: for 2022, over 1.1 billion USD turnover, cash flow positive, gross profit margin of 24% and on the way to the profit zone with strongly increasing backlog of orders and new complementary fields of activity (e.g. electrolysis). The first quarter, with a turnover of 201 million USD and a stated loss of 78.4 million USD (contains 26.3 million USD stock-based compensation), or minus 0.44 USD per share (GAAP), was disappointing at first glance. Large material deliveries to key customer SK ecoplant in South Korea was one reason for it.
It is unfortunately so: There are many traders and short sellers, but also some analysts, who do not focus on the prospects of a company, but take quarterly results as the basis for classification – a very short-term placement, but of course with a (short-term) impact on the share price performance. We’re also seeing this with Ballard, for which I often hear that the turnover is disproportionate to the stock market valuation and that the company is still making losses.