Fusion Fuel Green PLC(US:HTOO)2024-03-06 23:56Financial Data and Key Metrics Changes - The company recognized €1.6 million in revenue during the fourth quarter [5] - A pretax loss for the quarter amounted to €12.3 million, primarily driven by noncash items related to impairment charges of €9.7 million [62] - The bank balance was just over €1 million on December 31, and the company raised €5.9 million through its ATM facility in February [63][64] Business Line Data and Key Metrics Changes - The company received two separate purchase orders for a combined €4.2 million of revenue during the fourth quarter [10] - The HEVO Chain solution is expected to generate approximately €34 million in revenue for 2024, with €7.3 million already contracted [68] - The company plans to deliver and install six to seven full HEVO Chain systems to southern European clients in 2024 [14] Market Data and Key Metrics Changes - The green hydrogen market faced challenges in 2023, with a deceleration of commercial activity [24] - The company is expanding its market reach, planning to certify the HEVO Chain solution for use in North America and Australia in 2024 [27] Company Strategy and Development Direction - The company aims to strengthen its balance sheet and reach cash flow self-sufficiency by 2025 [47][55] - The IPCEI designation for the HEVO-Portugal Project is expected to facilitate funding and financing discussions with local governments and the European Investment Bank [73] - The company is focused on delivering engineering services and procurement of balance of plant equipment to capture a larger share of project spending [52][53] Management's Comments on Operating Environment and Future Outlook - Management noted that the IPCEI project has generated increased interest and urgency from potential partners [18] - The company anticipates that structural headwinds in the green hydrogen market may persist into 2024, but sees opportunities for differentiation [25] - Management expressed confidence in the operational inflows and the ability to execute a more strategic capital raise [65] Other Important Information - The company recorded a net increase of €6.4 million to its impairment provision during the fourth quarter [35] - The company has been cautious in its capital raise efforts, focusing on deals that create long-term value for shareholders [45][120] Q&A Session All Questions and Answers Question: Can you discuss gross margin expectations for 2024? - The company expects gross margins to be around 15% for projects including the HEVO Chain product, with an increase to approximately 20% by 2025 [102] Question: What are the next steps or milestones to keep an eye out for with respect to the IPCEI project? - The company is entering negotiations with partners and local governments for funding and support, with significant discussions expected to take several months [85] Question: What is the status of the Bakersfield project in California? - The company has made a deliberate decision not to provide updates on large projects until there is meaningful news [122] Question: What is the demand and feedback from the market for the HEVO Chain solution? - The company has seen strong interest in the HEVO Chain solution, with multiple proposals and project designs being delivered weekly [96] Question: How will the additional shares be drawn down? - The company seeks flexibility to make the right deal for capital partners, with a focus on minimizing dilution for shareholders [118]