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ITM Power Announces “Solid Progress” in Its Half Year Results for the Six Months to 31 October 2021

By January 27, 2022 6   min read  (943 words)

January 27, 2022 |

Fuel Cells Works, ITM Power Announces “Solid Progress” in Its Half Year Results for the Six Months to 31 October 2021

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces half year results for the six-month period ended 31 October 2021.

ITM Power plc

(“ITM Power” or the “Company”)

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces half year results for the six-month period ended 31 October 2021. Comparable figures, where stated, refer to the corresponding period in 2020 unless otherwise indicated.

Backlog and Pipeline| Reiterated from the Trading Update on 16 December:

  • Backlog of 499 MW as at 27 January
    • Contracted: 86 MW compared to 62 MW in December
    • In negotiation: 315 MW compared to 339 MW in December
    • Preferred supplier: 98 MW unchanged versus December
  • Tender pipeline of 880 MW compared to 331 MW in January 2021
Jan 22 MW Jan 21 MW % Change
Work in Progress* 86 21 309%
Contracts backlog** 499 163 206%
Tender pipeline*** 880 331 166%
Backlog + Pipeline 1,379 494 179%
Backlog + Pipeline (£m) 473 408 16%
*Work in Progress Contracted backlog
**Contracts backlog Contracted backlog and contracts in the final stages of negotiation and preferred supplier backlog
***Tender pipeline Quotations submitted in response to commercial tenders in the last 12 months

Commercial:

  • Project win for 24 MW in ammonia application, awarded in January 2022
  • Sinewave project grant from German government, awarded in January 2022
  • Refhyne II consortium awarded a grant of €32.4m by CINEA (the European Climate, Infrastructure and Environment Executive Agency) for the development of a 100 MW electrolyser to be sited at Shell’s Energy and Chemicals Park, Rhineland – the project will see an engineering design phase which will be followed by a final investment decision (FID) expected in late 2022 with delivery then scheduled for 2024
  • Contract signed for delivery of 12MW of electrolysis equipment to be deployed in 2022, and recognised in the 2022/23 financial year
  • In November, UK Government Investment secured for Phase 1 of ScottishPower’s 20 MW Whitelee Windfarm hydrogen production and storage facility

Operational:

  • Appointment of Principal Contractor Glencar Construction for the second UK factory for early design work
  • Refhyne I commissioning ongoing post switch-on and due for completion in Q1 2022
  • Gigastack I Project with BEIS successfully concluded to build prototype short stack Gigastack product

Financial:

  • Revenue of £4.2m (£0.2m), prior year reflecting impact of Covid-19 issues
  • Gross loss £2.6m (£2.8m)
  • Adjusted EBITDA Loss of £12.9m (loss of £10.4m)
  • Cash balance (excluding restricted balances) of £164.2m (£25.9m) at period end
  • Current cash of c.£390m after fund raise net proceeds of £242m received in November
  • Cash burn* of £11.8m (£14.0m)

*Cash burn is a non-statutory measure. Please see Note 5

Outlook:

  • Full year guidance of 33-50 MW products
  • Stacks to be included in standard products in excess of 55 MW
  • Revenue for standard product projects recognised at point-in-time:
    • Leuna (24MW) obligations now forecast to conclude in late April.
    • Leuna delivery close to year end presenting a timing risk
  • Continued long-term growth in tender pipeline and backlog expected
  • Spades in the ground in H2 calendar year 2022 for 2nd UK factory

Graham Cooley, CEO, commented: “We are making very solid progress, with a number of projects won which have resulted in a significant increase in our work in progress. The Company is focussed on delivery of products and converting the tender pipeline into contracted projects.”

Sir Roger Bone, Chairman, added: “The Company has invested heavily in skills and technology over the last year, and we now have a team of highly experienced professionals driving the business forward. The global market for green hydrogen is a dynamic new industry and ITM Power is very well placed as a global market leader. We look forward to announcing further contract wins in the period ahead.”

There will be an analyst call today at 0930h GMT. Those analysts wishing to join the call should register to receive an invitation by contacting [email protected].

There will also be a presentation for investors at 1400h GMT on the Investor Meet Company platform. Investors can sign up to Investor Meet Company for free and add to meet ITM POWER PLC via: https://www.investormeetcompany.com/itm-power-plc/register-investor

For further information, please visit www.itm-power.com or contact:

ITM Power plc
James Collins, Investor Relations +44 (0)114 551 1205
Justin Scarborough, Investor Relations +44 (0)114 551 1080
Investec Bank plc (Nominated Adviser and Broker) +44 (0)20 7597 5970
Jeremy Ellis / Chris Sim / Ben Griffiths
Tavistock (Financial PR and IR) +44 (0)20 7920 3150
Simon Hudson / Tim Pearson / David Cracknell

About ITM Power plc

ITM Power manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of renewable hydrogen for transport, renewable heat and chemicals. ITM Power PLC was admitted to the AIM market of the London Stock Exchange in 2004. In October 2019, the Company announced the completion of a £58.8m fundraising, including an investment by Linde of £38m, together with the formation of a joint venture to deliver renewable hydrogen to large-scale industrial projects worldwide. In November 2020, ITM Power completed a £172m fundraising, including a £30m investment by Snam, one of the world’s leading energy infrastructure operators. In January 2021, the Company received an order for the world’s then largest PEM electrolyser of 24MW from Linde. In October 2021, the Company, with Linde, announced the deployment of a 100MW electrolyser at Shell’s Rhineland refinery, following the start-up of an initial 10MW facility at the site. In November 2021, ITM Power raised £250m to accelerate expansion.

ITM Power operates from the world’s largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum, with the announced intention to build a second UK Gigafactory in Sheffield with a capacity of 1.5GW expected to be fully operational by the end of 2023. The Group’s first international facility, expected to have a capacity of 2.5GW per annum, is intended to be operational by the end of 2024, bringing total Group capacity to 5GW per annum. Customers and partners include Sumitomo, Ørsted, Phillips 66, Scottish Power, Siemens Gamesa, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, GNVert, National Express, Toyota, Hyundai and Anglo American among others.

 

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