The following is a summary of the Fusion Fuel Green PLC (HTOO) Q4 2023 Earnings Call Transcript:
Financial Performance:
Fusion Fuel Green PLC reported a Q4 revenue of €1.6 million, generated from supplying a hydrogen production system to CSIC in Spain.
The company faced a significant net increase of €6.4 million to the inventory impairment provision and a €3.3 million impairment charge on a development project.
Fusion Fuel successfully managed to decrease the operating costs for four consecutive quarters, but faced a pre-tax loss of €12.3 million for the quarter, mostly from non-cash items such as impairment charges, share-based compensation, and a fair value loss on warrants.
The company had just over €1 million in the bank as of December 31, and raised an additional €5.9 million from an ATM facility after the quarter ended.
Fusion Fuel maintains its revenue guidance for 2024 at €34 million, with €7.3 million of which is contracted to date. The company expects to reach cash flow breakeven by the end of 2025 despite financial challenges.
Business Progress:
Fusion Fuel recorded orders amounting to €4.2 million in revenue in Q4, for potential customers in Portugal.
The company's HEVO-Portugal Project received acknowledgment as an Important Project of Common European Interest (IPCEI) from the European Commission after Q4.
The company raised net proceeds of €5.9 million via an ATM facility in February and was awarded a grant by the European Commission as part of the H2tALENT consortium, totaling over €1 million.
Fusion Fuel intends to draw down the first tranche of its €20 million Macquarie facility by the end of Q1 2024.
The company aims to stop cash burn by the end of 2025, targeting further cost reduction without compromising product quality or services.
Fusion Fuel received approval for its Sines project portfolio from Portugal's Resilience and Recovery Plan, with grants totaling €32 million.
Fusion Fuel in partnership with Macquarie, has secured financing for the future, with plans to certify the HEVO Chain solution for use in North America and Australia.
In 2024, the company will supply and install six to seven full HEVO Chain systems to Southern European clients, alongside engineering projects to be delivered in 2025.
With strategic partnerships in place, the company anticipates strong growth in 2024 and a rise in the green hydrogen market with its unique HEVO micro-electrolyzer technology.
More details: Fusion Fuel Green IR
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