Everfuel – Q2 2024: Focus on HySynergy 1 completion and execution of realigned strategy

Herning, Denmark, 28 August 2024 – Everfuel A/S today published its second quarter 2024 financial results.

Key events Q2 2024:

• HySynergy 1 commissioning progressing according to revised plan towards start-up later in the second half of 2024
• Submitted proposal for project Frigg, an up to 2 GW H2 production facility, uniquely positioned for the coming Danish-German pipeline
• Opening of first hydrogen bus depot in Germany
• Seven trailers in operation serving bus station and bus depot
• Additional legacy assets sold in Q2
• Q2 EBITDA of EUR -2.7 million (EUR -4.4 million Q2 2023)
• Cash position of EUR 13.1 million at end of June 2024
• Current forecast shows that the Company will require additional liquidity within the next 12 months
• Specific actions are being taken to secure additional funding within a short time, expected to provide sufficient liquidity well into 2026

Everfuel’s ambition is to make green hydrogen for zero emission industrial activity and mobility commercially available across Europe. Everfuel develops large-scale green hydrogen production facilities, initially in Denmark, to provide green hydrogen for industry and mobility customers in Europe. The Company is engaging with partners, customers and authorities across the entire value chain, from production to distribution and fuelling, when executing its long-term strategy for value creation as a leading European green hydrogen company.

“We experience increased interest for green hydrogen offtake, mainly from Germany. Our first letter of intent with a German industrial customer in May and the recent publication of the Aurora study, which validates Denmark’s strong competitive position for producing green hydrogen (RFNBO), creates positive momentum to our dialogues with potential offtakers in Germany,” says Jacob Krogsgaard, the Founder and CEO of Everfuel.  “We are therefore excited to move ahead with the Frigg project, representing a significant expansion of Everfuel’s planned capacity and Denmark’s green hydrogen production infrastructure. It is a key enabler for commercial discussions with customers in Germany and the delivery on our long-term growth ambitions.”

In June, Everfuel submitted a project proposal for the phased development of up to 2 GW green hydrogen production capacity at the Revsing Energy Park under development by the municipality of Vejen, Denmark. The project named Frigg, if included by the municipality, is set to become Everfuel’s first largescale production facility dedicated to hydrogen supply via pipeline to industrial customers in Germany. Everfuel has secured the site for the planned facility and is progressing development and feasibility work to secure access to relevant infrastructure. Frigg is located in close proximity to the Revsing transformer station and within the area of the planned hydrogen backbone.

In May, Everfuel signed a letter of intent with an undisclosed German industrial customer for initial supply of up to 10,000 tons of green hydrogen per year. The Company plans to supply the German customer and other future industrial offtakers with hydrogen from the Frigg facility via the hydrogen backbone.

Key financials

Total revenue, representing the sale of hydrogen, projects and other operating income, was EUR 0.8 million in the second quarter of 2024, down from EUR 2.1 million in the same period of 2023. EBITDA was negative EUR 2.7 million (negative EUR 4.6 million in second quarter 2023). The improvement is a result of the high-grading of the downstream project portfolio and optimised downstream operations.

Total Group assets at 30 June 2024 were EUR 101.5 million, compared with EUR 112.0 million at year-end 2023. The increase in non-current assets reflects that the construction phase of HySynergy 1 is close to completion. The decrease in current assets reflects the receipt of accrued grants and a reduction in in cash and cash equivalents. At period end, the cash position was EUR 13.1 million, compared to EUR 27.1 million at year-end 2023. The decrease reflects investments made during the period. Total equity amounted to EUR 64.6 million (EUR 73.3 million). Changes from year-end reflects the net loss in the period.

HySynergy 1 and trailer update

Everfuel continues to progress commissioning of HySynergy 1 with expected production start towards the end of the second half of 2024. Remaining testing, verification and certification are being executed in close cooperation with the electrolyser supplier, Nel, and other sub-suppliers.

Following identification of three independent root causes for the systematic failures experienced on the hydrogen distribution trailers, Everfuel and the supplier have agreed to a plan for refurbishing the trailers and bringing the entire fleet back in operation. Seven trailers are now operational with Everfuel and the supplier expecting an additional three to be ready for operations during November. Everfuel expect to have ten out of 12 trailers in active operation and two as back-up going forward.

Outlook

The financial results for the first half of 2024 reflects that the company is still in the initial stages of commercialising the green hydrogen value chain. Everfuel continues to progress HySynergy 1 towards commissioning and start up towards the end of the year.

HySynergy 1 is expected to have material positive impact on revenue generation when it is in operation. Longer-term, the combination of increased green hydrogen production, distribution and end-user deliveries, are expected to drive revenue growth. For 2024, Everfuel maintains the expectation to report a negative financial result in the range of EUR 11 million to EUR 15 million.

The delayed start-up will impact cash flow from hydrogen sales in Everfuel Production A/S (EFP). To ensure safe completion and operations, Everfuel A/S and Hy24 is expected to inject additional capital into EFP in the third quarter of 2024. Everfuel A/S’ part of this cash injection is expected to be in the range of EUR 1-2.5 million.

The current expectation is that the full year combined cash flow from operating activities and investment activities will be in the range of EUR 20 million to EUR 25 million compared to EUR 40.5 million in 2023, of which EUR 10 million to EUR 13 million will be in the 100% owned group companies and the remainder in the JV structure.

The cash position at the end of June 2024 was EUR 13.1 million, whereof EUR 4.0 million is restricted and reserved for issued guarantees to customers and grant authorities. This liquidity position is not expected to cover all planned activities the next 12 months. Everfuel’s board of directors and management have progressed discussions with the aim of ensuring financing of Group operations and investments well into 2026 and expects to provide additional information shortly. 

Webcast

CEO Jacob Krogsgaard and CFO Jesper Ejlersen will present the company's results today at 10:00 CEST and invite investors, analysts, and media to join the live webcast presentation. The presentation is expected to last up to one hour, including Q&A, and can be followed via live webcast.

Join the results webcast on Teams via the following link: Q2 2024 results presentation   

Questions can be submitted through the online webcast during the presentation. A recorded version of the presentation will be made available at www.everfuel.com after the presentation has concluded.

For further information, please contact:

Jesper Ejlersen, CFO, Everfuel, [email protected]
Mads Tirsgaard Mortensen, Investor Relations Director, Everfuel, [email protected], +45 7730 4727

About Everfuel | www.everfuel.com

Everfuel own and operate green hydrogen infrastructure and partner with industry and vehicle OEMs to connect the entire hydrogen value chain and seamlessly provide hydrogen fuel to enterprise customers under long-term contracts. Green hydrogen is a 100% clean energy carrier made from renewable solar and wind power and key to decarbonising industry and transportation in Europe. We are an ambitious, rapidly growing company, headquartered in Herning, Denmark, and with activities in Denmark, Germany and The Netherlands, and a plan to grow across Europe. Everfuel is listed on Euronext Growth in Oslo under EFUEL.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.