21/2021 Green Hydrogen Systems adjusts its forecast for 2021

Company Announcement 21/2021

Green hydrogen systems adjusts its orientation for 2021

Kolding, Denmark, September 29, 2021 – Green Hydrogen Systems, a leading supplier of efficient electrolyzers used in on-site production of hydrogen from renewable energy, announces an adjustment to its forecast for 2021 summarized as follows:

  • Green Hydrogen Systems’ updated A-Series product platform has formed the basis of its current order backlog, which is scheduled for delivery towards the end of the second half of 2021

  • A drift in the finalization of product design, component specifications and nomenclatures has caused some ripple effects in recent months and will result in a delay in the delivery of the order book and, consequently, an adjustment of forecasts for 2021

  • The overall progress of operations, scale-up and commercial traction of Green Hydrogen Systems for 2022 as well as long-term plan expectations and targets for 2025 remain unchanged.

Green Hydrogen Systems has produced and delivered its first generation A-series electrolyzers to a number of projects across Europe. Subsequently, the A-series product platform was upgraded to a more powerful electrolyser created from a revised engineering design. The updated A-Series product platform has also formed the basis of the current order book, which is slated for assembly and delivery towards the end of the second half of 2021.

While improving product performance, Green Hydrogen Systems is also changing its process of assembling prototypes to become mass production, resulting in cost and scaling benefits as well as increased cost. assembly capacity. However, a drift in the finalization of product design, component specifications, nomenclatures and labor recruitment has in recent months caused some ripple effects on other elements of the phases of development. assembly and testing. It has now become evident that the cumulative impact of these negative effects will cause a delay in the assembly and delivery of the order book.

As previously reported, delivery of the majority of the backlog is expected and revenue recognition at the end of the second half of 2021, which formed the basis of the forecast for 2021. Although the delivery of orders will begin during the fourth quarter, unforeseen events with tight production planning and phasing of the delivery schedule cause the expected revenue forecast for 2021 to drop to around DKK 5 million (previously DKK 40-60 million), thus postponing the take-up. account for a significant portion of the current order book until 2022. The decline in revenue forecast for 2021 is a consequence of the events mentioned above and has not had any impact on actual order intake and pipeline progress which are developing as planned.

Delays in the delivery of customer orders as well as the increase in raw material costs also have an impact on the ability to achieve the gross profit margin, EBITDA and EBIT expected for 2021. The additional costs impacting the gross margin concern mainly provisions for losses and provisions for late deliveries. In addition, the increase in resources due to more complex initial production of the A-series as well as advanced project capabilities to support the future X-series has an impact on both gross margin and EBITDA. . As a result, the orientations are adjusted as below:

Turnover Around DKK 5 million (previously DKK 40-60 million)
Gross profit Approximately DKK -15 million (previously broadly neutral in absolute terms)
EBITDA -145 to -155 million DKK (previously, -105 to -115 million DKK)
EBIT DKK -160 to -170 million (previously DKK -120 to -130 million)
R&D 75-85 million DKK (unchanged)
CAPEX 135 to 145 million DKK (unchanged)

Delays in the delivery of ongoing client projects and subsequent changes to the 2021 guidance are broadly attributable to the simultaneous organization, product and process scaling and therefore should be viewed as a combined start and a one-off character. The general progress of operations, scale-up and commercial traction of Green Hydrogen Systems for 2022 as well as long-term plan expectations and targets towards 2025 remain unchanged.

For more information please contact:

Investors: Jens Holm Binger, Head of IR, +45 6065 6525, [email protected]

Media: Aleksandra Lozinska, Marketing and Press Relations Manager, +45 4414 0344, [email protected]

Green hydrogen systems at a glance

Green Hydrogen Systems is a clean technology company and a leading supplier of standardized and modular electrolyzers for the production of green hydrogen solely from renewable energies. With its wide range of possible applications, green hydrogen plays a key role in the fundamental shift underway in our energy systems towards a net zero emission society in 2050. As a result, the demand for green hydrogen is booming. , requiring a large scale. up to electrolysis capacity. Founded in 2007 and leveraging over 10 years of technological development, Green Hydrogen Systems today has commercially proven and cost competitive electrolysis technology endorsed by leading green energy companies.

Source: Green hydrogen systems
Symbol: GREEN
Tag: Company Announcement

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