Plug Power breaks a record year in 2021 but still does not make a profit


LATHAM – Plug Power (Nasdaq: PLUG) said it ended 2021 with its highest-ever quarterly revenue.

The producer of green hydrogen reported a fourth quarter revenue totaling approximately $162 million according to the Securities Exchange Commission (SEC) on Tuesday, although its investors have yet to see a profit from it.

Their total earnings in 2021 were $502, in contrast to steep losses in 2020.

Its diluted earnings per share were $0.33 for the last quarter of 2021 and $0.82 for the year.

Plug Power creates fuel cells that power machines, such as forklifts, in addition to what it has dubbed “green hydrogen” for the energy sector using electrolyser technology.

Plug Power balances new business with spending

Plug Power attributed more than 20% of last quarter’s revenue to new business that brought in more than $10 million in electrolyser sales.

The company also admitted to incurring a one-time charge of $56 million for service costs related to its fuel cell vehicles, according to the SEC report. His spending alone was just under $113 million.
“With this load coupled with the superior performance of units deployed in 2021, we believe the service business will approach profitability in the near term,” Plug Power said in a press release.

In its filing with the SEC, the company said its delivery of 5,000 green units to customers with “enhanced” technology enabled it to reduce service costs by 50%, some of which it plans to reallocate to manufacture its legacy units – fuel cell vehicles. – to “have a positive impact” on its finances.

Company executives said Plug Power remains committed to reducing service costs per unit by 30% over the next year and 45% by the end of 2023.

“We expect this improvement in our service costs to materialize in our margin rates in 2022, which could lead to service margin rates at breakeven by the end of the year,” says the press release.

The fuel sector is under pressure

Plug Power has made a point of addressing declining fuel margins due to rising natural gas prices, driving up the costs of its hydrogen molecules.

The company predicted that its average molecule costs will decline through 2022 as capacity increases at its recently expanded hydrogen plant in Tennessee and others begin operating.

He forecasts fuel margins to break even in 2023 and hopes that by 2024 the company will begin to “generate cash flow and approach corporate margin targets with the potential for increase,” the statement said.

CEO Andy Marsh told investors he was also monitoring developments in Ukraine. He said the crisis shows nations that autocratic governments cannot be the “gas stations of the world”.

“Liberal democracies will accelerate the energy transition because of this horrific event and the plug is uniquely positioned to create the future because we can help businesses and governments transition to a zero-carbon solution, not in the distant future. , but today,” he said. underline.

Aim high in 2022

As Plug Power progresses towards its goal of creating 70 tonnes of green hydrogen per day by the end of 2022, he assured investors that the company is on track to produce 500 tonnes per day by 2025 and 1,000 tonnes per day by 2028 when called.

Leadership credited with his incremental progress to several partnerships is assured, such as that with Renault, Fortescue and Fertiglobe, key acquisitions and his ability to reach five major customers in his material handling business, a goal he achieved three years early provided that.

Plug Power plans to deliver on that promise by establishing a “Green Hydrogen Generation Network” in North America. Marsh said building its network to certify that it is achieving this goal is a “key priority”.

Currently, several hydrogen plants are under construction with the expectation of commissioning by the end of the year, including a gigafactory in Rochester which Plug Power says will generate 380 new jobs in Monroe County, while the company innovates at several other sites to complete the network by early 2024 at the latest.

The company also reaffirmed its commitment to achieve revenue of at least $900 million in 2022 and $3 billion by 2025.

“(In) 2021, Plug Power grew revenues by more than 50% despite supply chain constraints and the impact of the pandemic. In 2022, Plug will nearly double its revenue,” Marsh said.


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