Green hydrogen company ITM Power’s revenue tripled from £5.2 million last year to £16.5 million, but the group’s share price suffered from a downgrade in its forecast.
As the energy company announced in its preliminary results, it made an adjusted operating loss of £30.4 million last year, compared to a massive £94.2 million the year before.
Notably, net cash flow of £230 million was above the £200-220 million forecast in June.
ITM Power’s 12-month plan was also successfully completed, reducing the product portfolio, increasing capital discipline and eliminating bottlenecks in manufacturing, supply chain and testing.
However, not everything was positive for the company. When it released its new financial guidance for the coming year, it said it only expected revenue of £18-22 million, compared to the widely expected £33 million.
Next year, adjusted operating loss is expected to be £35-40 million, above consensus estimates of £33 million, while net cash is expected to be £160-175 million, in line with expectations.
The group’s sales next year are likely to be driven by the RWE, Leuna and Yara projects, which have experienced some delays.
ITM Power’s share price fell 8.4 percent this morning.
“In my first full year at ITM, the company has made significant progress,” said Dennis Schulz, CEO of ITM Power.
“We have completed our 12-month plan and transformed ITM into a credible delivery organization. Today, we have a focused and highly competitive product portfolio, all using the same market-leading stack technology that we can deploy on projects of any size and in almost every region of the world.
“We have also achieved a culture change where we do things right the first time and prioritise quality over quantity, which is increasingly evident in our day-to-day operations. As a result, EBITDA losses in the financial year fell to a third of the previous year, while we tripled revenue. We are now disciplined with our capital, which is reflected in our net cash position at year-end.
“We are a world leader in technology and use our electrolyzers in some of the largest and most prestigious green hydrogen plants currently being built around the world. Our growing base of reference plants and real-world operating data helps us convince new customers of our capabilities, as do the large-scale projects we are currently undertaking.
“Today, ITM is significantly more powerful than ever before. We have gained control over what we can control. Our path to profitability is no longer a question of performance, but now a question of order volume. The foundations we have laid will enable ITM to build long-term value so that we can invest in growth and generate attractive returns for our shareholders.
“In the meantime, our sales pipeline has grown strongly, also supported by an increasingly positive regulatory environment, which makes me optimistic about the future for ITM and our industry.
“We are ready. Now we need more customers to take FIDs.”
