HydrogenPro (HYPRO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NOK 72 million, up from NOK 50 million in Q2 2024 but down from NOK 220 million in Q3 2023, with a 26% gross margin mainly from the Salzgitter project.

• Manufacturing for the 100 MW Salzgitter project completed, with installation and commissioning scheduled for H2 2024/H1 2025.

• Awarded EUR 16.5 million from the EU Innovation Fund and DKK 35 million from Denmark's Export and Investment Fund for scaling electrode manufacturing.

• Manufacturing capacity for next-generation electrode technology increased to 350 MW annually, with full-scale production in Denmark expected by Q1 2025.

• Order backlog stood at NOK 341 million at quarter-end, down from NOK 416 million in Q2 2024.

Financial highlights

• Gross margin for Q3 2024 was 26%, up from -17% in Q2 2024, with gross profit at NOK 19 million.

• EBITDA loss improved to NOK -38 million from NOK -65 million in Q2 2024.

• Net loss for Q3 2024 was NOK -38 million, an improvement from NOK -77 million in Q2 2024.

• Cash position at quarter-end was NOK 188 million, down from NOK 247 million at the start of Q3.

• Investments in Q3 totaled NOK 15 million, mainly for manufacturing expansion in Denmark.

Outlook and guidance

• Focus on successful commissioning of ACES and Salzgitter projects, with installation and commissioning scheduled for H2 2024/H1 2025.

• Full-scale validation of 3rd generation electrode technology ongoing, with a 500-hour test planned for Q4 2024/Q1 2025.

• Manufacturing expansion in Denmark expected operational by Q1 2025.

• Pipeline is robust, with projects maturing and approaching FID, but some delays persist due to funding uncertainties.

• Securing firm purchase orders and increasing order intake are key priorities.