Fusion Fuel Green PLC(US:HTOO)2022-11-28 21:43Financial Data and Key Metrics Changes - The company reported an operating loss of EUR5.5 million for Q3 2022, driven by EUR4.6 million in operating expenses, which increased due to headcount growth and related tax provisions [14][15] - The pretax loss for the quarter was EUR1.6 million, significantly impacted by a non-cash item of EUR3.8 million from the fair value movement of outstanding warrants [16] - Total assets amounted to EUR61 million, with liabilities at approximately EUR15.6 million [17] - The company holds EUR12 million in inventory and EUR3 million in advanced payments to suppliers, which positions it well to transition inventory into revenue [19][20] Business Line Data and Key Metrics Changes - The company has secured two tech sale contracts totaling EUR7 million in Portugal and Spain, and has commenced work on the Exolum tech sale project in Madrid [10][11] - The HEVO-Chain, a new centralized electrolyzer product, was introduced, expected to disrupt the PEM electrolyzer market [13][66] Market Data and Key Metrics Changes - The company is expanding into North America and Italy, with early-stage opportunities in California and Southern Italy, totaling over 75 megawatts of capacity for 2024 and 2025 production [35][55] - The Inflation Reduction Act in the U.S. is seen as a significant driver for growth, providing substantial financial incentives for hydrogen production [48][49] Company Strategy and Development Direction - The company aims to achieve over EUR40 million in gross revenue in 2023 through technology sales and selling existing projects to financial investors [30] - The focus is on derisking the pipeline by ensuring projects have secured land, grants, and customers, with over 50% of the 2023 pipeline already in permitting [31][32] - The company plans to build a mobility backbone and decarbonize industrial applications, particularly in the Sines region of Portugal [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity for green hydrogen, citing strong financial incentives in both Europe and North America [81] - The company is optimistic about the timing of its entry into the North American market with the Bakersfield project, which is expected to benefit from the IRA [77][80] Other Important Information - The company has applied for nearly EUR80 million in grants, with EUR30 million already secured for one of its projects [26][27] - The company is actively managing its liquidity position through various tools, including VAT reimbursements and the sale leaseback of properties [21][25] Q&A Session Summary Question: What will be the main source of revenue by 2025 or 2030? - Management indicated that HEVO-Solar will take the bulk initially, but HEVO-Chain is expected to overtake it due to a larger addressable market [84] Question: Are there plans to introduce other products across the hydrogen production chain? - Currently, the focus remains on HEVO-centric products, with potential variations but no new product lines expected in the short term [85][86] Question: Is the H2 Pioneros Program all or nothing for the projects involved? - Each project stands on its own; if one moves forward, the others may not necessarily follow [89] Question: Will Bakersfield be a mix of HEVO-Chain and HEVO-Solar? - The company is evaluating both options and will provide updates as the project progresses [92] Question: How will the Bakersfield project be funded? - A 50-50 joint venture is planned, with discussions ongoing for financing from financial investors [96] Question: How much has been invested in the Benavente facility thus far? - Approximately EUR10.1 million has been invested, with expectations for an additional EUR15 million in 2023 [108] Question: What is the current production capacity and expectations for 2023? - The expected production capacity for 2023 is between 40 to 50 megawatts, contingent on project demand [114]