HydrogenPro ASA - First quarter 2023 results

9 May 2023 - HydrogenPro ASA (OSE: HYPRO) today published its Q1 2023 report and presentation.

Highlights:

• Revenues for the quarter is NOK 83 million, up 230% from fourth quarter 2022
• In 2023, HydrogenPro has made several major decisions to establish a leading global position, with a strong foothold on three continents:
  • Initiated process to increase manufacturing capacity in China from 300 to 500 MW
  • Announced plan to establish 500 MW of manufacturing capacity in Texas, US, with an estimated investment cost of USD 30-50 million
  • Entered into a strategic partnership with global EPC-supplier ANDRITZ to collaborate on scaling up assembly and manufacturing in Europe
• The manufacturing site in Tianjin, China is fully operational and progressing with contract deliveries
• Last 1000 hours test of 3^rd generation electrodes to be concluded in July 2023
• Initial lab tests of 4^th generation electrolyser show higher efficiency and zero loss of cooling water

Financials (Q4 2022 numbers in brackets)

• Revenues of NOK 83.4 million (NOK 25.3 million)
• Reported EBITDA of NOK –17.1 million (NOK -32.2 million)
• Net profit of NOK –9.0 million (NOK –23.2 million)
• Backlog of NOK 648 million (NOK 747 million)

“The first six months here at HydrogenPro has been exciting, with multiple milestones being reached”, says CEO Tarjei Johansen. “With the Texas announcement, ANDRITZ partnership, and China expansion, we have taken important steps towards establishing 5 gigawatt of manufacturing capacity within the next 5 years. Our R&D team has made significant progress in the lab, and initial tests of our newly designed 4th generation electrolyser shows very promising results. The 3^rd generation electrode technology is in the final test stage, and we expect to begin manufacturing before the end of the year. Simultaneously we are progressing with manufacturing of 220 MW electrolysers to the world’s largest green hydrogen energy hub, with revenues of NOK 83 million in the quarter and a gross margin of 22.9%, adjusted for one-off R&D expenses.”

The Q1 2023 report and presentation are enclosed. A live streamed webcast presentation will be held at 10:00 CET, followed by a Q&A session with questions to be posted online during the presentation. Link to webcast: https://channel.royalcast.com/landingpage/hegnarmedia/20230509_5/