![]() ![]() The long-term goal of the agreement is to reduce costs and increase scalability while achieving strong reductions of carbon dioxide emissions from industrial operations. In fact, ExxonMobil is exploring options to conduct a pilot test of next-generation fuel cell carbon capture solutions at one of its operating sites. 6, 2019 with the purpose of optimizing the core technology, overall process integration and large-scale deployment of carbon capture solutions. This carbon capture technology agreement was announced by the companies on Nov. In fact, it was this deal that saved FuelCell from bankruptcy. The reason for the issuance of equity is that the company already has high leverage and a high debt-equity ratio, but given the fact that it is not far away from breaking even, I think the future fundraises by the company should be limited.įuelCell Energy struck a $60 million deal Exxon Mobil (NYSE:XOM) in 2019, which resulted in a higher level of activity under the carbon capture program. FuelCell Energy looks to gain access to more capital for scaling up, hence the $75 million issue. Also, cash and equivalents have nearly doubled this year. There was also a reasonable effort in terms of cost control, which is why we see the size of the negative bottom-line reducing rapidly. The management has focused on accelerating revenue growth largely through Generation, Service and Advanced Technology. This was a significant improvement over the $2.06 per share loss reported in the same quarter of 2019. With the operations scaling up, the company is slowly approaching its break-even, as it reported a net loss of $14.8 million this quarter, or 7 cents per share, which was on par with the analyst consensus estimate. In 2019, FuelCell Energies was operating on a gross loss, but now it has managed to generate a positive gross margin. This is the result of the strengthening unit economics. ![]() The company's operating loss of $8.1 million is less than half of the $17.6 million operating loss in the prior-year quarter. This increase of 105% also ensured that the company beat analyst consensus estimates of $15.55 million by more than 20%. The company reported revenue of $18.9 million, more than double the reported revenue from the corresponding quarter of 2019. FuelCell employs close to 300 people and has its headquarters in Danbury, Connecticut.įuelCell Energy recently reported earnings for its fiscal second quarter of 2020. The company has its core business in the U.S., followed by South Korea, the UK and Germany. Its SureSource power plants generate electricity and usable heat and cater to a wide variety of industries such as data centers and communication, educational institutions, healthcare services, industrials, wastewater treatment and hospitality. The company's core product line, called SureSource, is based on carbonate fuel cell technology in various configurations, including on-site power, utility grid support, distributed hydrogen and micro-grid as well as multi-megawatt applications. Its core offerings work towards the efficient conversion of chemical energy in fuels into electricity through a series of chemical reactions. Click here to check it out.įuelCell Energy is engaged in the designing, manufacturing, sale, installation, operation and servicing of stationary fuel cell power plants for distributed power generation. Warning! GuruFocus has detected 5 Warning Signs with FCEL. However, the future outlook of the company is bright, potentially making it a compelling investment opportunity in my view. ![]() As it readies itself to issue an additional $75 million worth of stock, the price is falling because of the expected dilution. (NASDAQ:FCEL) will be back in the limelight.įuelCell Energy is one of the oldest clean energy companies, and it managed to deliver an excellent quarterly result even in the lockdown situation. It only appears to be a matter of time before this comes back to focus, which is when companies like FuelCell Energy Inc. ![]() As the world continues to fight the Covid-19 pandemic, one highly promising sector that has been put on the backburner by the investor community is the green energy space. ![]()
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