Hydrogen companies: Numbers!

Plug Power took another relatively sharp hit at the start of the new week on Monday. The company reported figures that were apparently not so well received by the financial markets. The share lost -4.4 %. Ballard Power from Canada also reported quarterly figures. The stock markets reacted with a clear markdown for this as well. The share fell by a good -4 %. The price drops are either a direct reaction to the figures – or the mood is decidedly bad.

Plug Power – just a forerunner for Nel Asa?

The truth will be seen on 11 May. Then the third in the group will report its next figures: Nel Asa. The Norwegian company will close the recent reporting period with its quarterly figures among the hydrogen stocks. The quotations will show whether the stock markets want to punish the entire industry.

Plug Power, however, has prominently opened or taken up the round of reporting. The US-Americans at least did not attract negative attention. Essentially, Plug Power wants to massively expand the production of green hydrogen in the coming months. By the end of the current year, production is to be expanded to 70 tonnes a day. By 2025, output per day will be increased to 500 tonnes of hydrogen, according to the plan.

The figures themselves are solid, it was reported in advance. The US is lagging behind the European West in terms of timing, so the stock exchanges were merely trading expectations on Monday. Expectations were that the stock would post a loss of -$0.16 per share. Again, this would be comparatively low. In the last full financial year, Plug Power had actually lost more than -80 cents per share overall. If, however, the losses were to be significantly higher, this could be seen as a further problem.

Of note was the fact that the US company reported a Q4 loss on a GAAP (post) basis that was larger than expected. Revenues, on the other hand, exceeded expectations.

For the full fiscal year, Plug Power 2022 now expects revenues of $900 million to $925 million. For the current year, analysts have so far given a similar estimate of $909 million. Time will tell if Tuesday’s quarterly numbers will confirm that increase over the $502 million achieved for the full year 2021. If the report points to a weaker financial year, Plug Power may see a significant downward swing in the coming weeks, according to the ongoing trend. The stock markets have already caused a weakening with the recent price losses.

All trend indicators are now pointing downwards. The GD200 and GD100 are now both 28% and 19.7% away respectively.