FuelCell Energy Shares Tumble 19% as Losses Grow
On the brighter side, revenue rose sharply
FuelCell Energy's (US:FCEL) shares fell nearly 19% on Tuesday after the company reported growing losses.
For the fiscal year, the company saw total revenues rise to $130.5 million, an 88% increase from the previous year. Loss from operations was $143.7 million, compared to a loss of $64.9 million the last year, and the company had a net loss of $147.2 million, compared to a net loss of $101.0 million the previous year. However, the company did see an increase in unrestricted cash, which was $458.1 million as of Oct. 31, 2022, compared to $432.2 million the previous year.
FuelCell Energy said that during the quarter, it deployed capital to support growth and commercialize its solid oxide-based platform for power generation and hydrogen electrolysis. The company also announced its intent to deploy this platform in Ukraine to produce hydrogen and ammonia for energy security and agriculture. Additionally, FuelCell Energy extended its joint development agreement with ExxonMobil through Aug. 31, 2023, and completed a joint market development study.
The company said it delivered eight modules to Korea Fuel Cell, bringing the total number of modules delivered for the operation and maintenance of their existing Korean fleet of projects to twenty. FuelCell Energy also said that Trinity College in Hartford, CT placed a firm order for its first 250kW solid oxide platform, adding modular, sub-megawatt power generation to targeted geographic markets and the sub-megawatt power generation platforms currently offered in the European Union and the UK. The company is also working toward expanded availability of its high efficiency electrolysis platform in fiscal year 2024 and beyond.
On a call with analysts after the results news, Chief Financial Officer Mike Bishop emphasized the company's efforts to "reduce costs and increase efficiency," as well as its strategy for growth through "product development and partnerships."
On the same call, Chief Executive Officer Jason Few said the company is "well positioned to continue executing on our Powerhouse strategy, which is focused on delivering scalable, innovative and cost-effective solutions to decarbonize power and produce hydrogen." The company is "continuing to work closely with our customers and partners to identify and pursue growth opportunities and scale our technologies."
FuelCell Energy develops stationary fuel cell platforms and leverages proprietary technologies to "decarbonize power and produce hydrogen." The company operates in North America, Asia and Europe and is looking to expand into more markets as it commercializes and scales its technologies.