Fusion Fuel Green PLC(HTOO) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company recognized no revenue during the second quarter, invoicing customers a total of €1 million, which will be deferred until performance obligations are satisfied [14] - The pre-tax loss for the quarter amounted to €12.4 million, with approximately €8.1 million related to non-cash items [27] - The operating cost base decreased for the second consecutive quarter, with reductions in personnel-related costs and other expenses, offset by increased legal and depreciation charges [26] Business Line Data and Key Metrics Changes - The company recorded an impairment charge of €7.2 million for inventory components not expected to be used in future projects [25] - A €2.5 million contract was awarded to supply a 550-kilowatt solar to green hydrogen plant by a Spanish government agency [24] - The shift from HEVO-Solar to HEVO-Chain is expected to streamline licensing and permitting processes, reducing difficulties encountered in 2023 [30] Market Data and Key Metrics Changes - The company is focusing on Southern Europe while making inroads into Northern Europe and North America, with significant grant funding tied to foundational projects [22] - The company has secured substantial strategic sites and is developing key green hydrogen projects primarily in Portugal and Spain, as well as in the U.S. and Morocco [35] Company Strategy and Development Direction - The company aims to strengthen its capital position and extend its runway to achieve cash flow self-sufficiency while protecting shareholder interests [15][16] - Strategic partnerships are a key enabler for growth, with ongoing discussions in Europe and beyond to accelerate market presence [44][78] - The company is transitioning to HEVO-Chain, which allows for more standardized offerings and a streamlined approach to project development [30][113] Management's Comments on Operating Environment and Future Outlook - Management acknowledged delays in project completion due to licensing and permitting issues, impacting revenue guidance for 2023 [17][105] - The company remains optimistic about the green hydrogen market, noting increasing customer willingness to pay a premium for green hydrogen [46][67] - The U.S. market is a priority, with ongoing partnership discussions and plans to license the HEVO-Chain solution for sale in the U.S. [111][116] Other Important Information - The company published its inaugural ESG report and continues to work on strategic partnerships to enhance its market position [6][13] - The company is in advanced discussions with capital providers to strengthen its financial position and is exploring various financing solutions [16][106] Q&A Session Summary Question: What is the status of the U.S. strategy given the departures of the previous co-Presidents of Fusion Fuel USA? - The U.S. market remains a priority, with ongoing partnership discussions and plans to engage local partners [111] Question: Can you provide clarity on the €20 million reduction in revenue guidance for 2023? - The reduction is due to two projects that will no longer proceed in 2023, impacting expected revenue from electrolyzer sales [62][64] Question: What are the next steps regarding your product simplification strategy and the perceived phaseout of HEVO-Solar? - The company is focusing on transitioning projects to HEVO-Chain, with no further product simplification strategy required at this stage [84] Question: What is the status of the Gedisol project? - The Gedisol project was impacted by licensing delays, and the company has shifted investors to other projects in its portfolio [105] Question: How do you plan to fund the remaining capital investment for the H2 Pioneers project? - The company is working on transferring grants to third-party investors, which will allow them to benefit from the funding [95]