Everfuel – Q1 2024: Focus on HySynergy 1 completion and execution of realigned strategy

Herning, Denmark, 15 May 2024 – Everfuel A/S today published its first quarter 2024 financial results.

Key events Q1 2024:

• HySynergy 1 start-up moved to second half 2024 due to failed commissioning tests of certain sub-systems provided by the supplier postponing internal Everfuel and supplier software validation 
• LOI with undisclosed industrial offtaker of green hydrogen in Germany
• Political agreement in Denmark for financing of the hydrogen pipeline infrastructure
• Five trailers in operation, serving the Heinenoord bus station and upcoming bus depots in Germany
• Q1 EBITDA of EUR -2.6. million (EUR -5 million Q1 2023)
• Cash position of EUR 25.4 million at end of March 2024 
• Significant cost reduction in downstream business activities
• Current liquidity position expected to fund investment and operation plans well into 2025
• Updated long-term ambition of >2 GW installed capacity, EUR >1 billion revenue by end-2035 with an EBITDA margin of 30-35%

Everfuel’s ambition is to make green hydrogen for zero emission industrial activity and mobility commercially available across Europe. Everfuel primarily focus on the development of large-scale green hydrogen production capacities starting in Denmark and providing green hydrogen for industrial and mobility users 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.  

On May 8, Everfuel announced a Letter of Intent (LoI) with a large industrial offtaker in Germany for the supply of up to 10,000 tons of green hydrogen per year from 2028. Industrial-scale green hydrogen production, distribution and fuelling networks are required for Europe to meet stated climate targets. Everfuel’s activities support these targets and maintains the ambition of being one of the first green hydrogen companies to reach over EUR 1 billion in revenue from hydrogen sales to industry and mobility customers.

“Everfuel continues the implementation of our realigned strategy, prioritising the development of large-scale electrolysers supplying industry and heavy-duty mobility, while at the same time reducing cash burn and adding financial flexibility. Today, we present our updated long-term ambitions as a leading European independent hydrogen producer, enabling hard-to-abate industries to decarbonise, as reflected in the recent LOI signed with a new partner in Germany. Execution of our strategy is supported by the Hy24 JV, which positions us to accelerate the deployment of green hydrogen production to meet strong European demand growth driven by the urgent need for zero-emission energy and transport systems,” said Jacob Krogsgaard, the founder and CEO of Everfuel.

Following the strategy realignment, Everfuel has updated the company’s financial model and set new long-term ambitions based on the development of the hydrogen backbone infrastructure in line with agreements announced Danish and German Governments. Everfuel targets to have more than 2 GW of green hydrogen production capacity installed by end-of 2035 based on the execution of three electrolyser projects in Denmark, supporting the above-mentioned revenue target and an expected EBITDA margin of 30-35%. Total investments are forecast to around EUR 2 billion, of which EUR  300 million is expected externally raised equity financing and the remainder being expected cashflow from operations, debt at group and SPV level and various grants. Of the EUR 300 million equity requirement, approximately one-third has already been raised.

Everfuel recognises, that as an early mover in a new industry, the Company is breaking new ground and continuously contribute to constructive maturation of technology together with suppliers and stakeholders, exposing the Company to protracted political progress, immature technology, supply chain challenges, cost inflation and scarce resources including access to competence.

Key financials

Total revenue, representing the sale of hydrogen, projects and other operating income, was EUR 1.2 million in the first quarter of 2024, up from EUR 0.6 million in the same period of 2023. Total revenue included EUR 0.4 million in proceeds from sales of legacy assets related to the downstream business.

EBITDA was negative EUR 2.5 million (negative EUR 5.0 million in first quarter 2023). The improvement is driven by high-grading of the downstream project portfolio and optimised downstream operations as well as savings in group cost.

Total Group assets at 31 March 2024 were EUR 107.6 million, compared with EUR 111.2 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 that accrued grants have been received and a reduction in in cash and cash equivalents. At period end, the cash position was EUR 25.4 million, compared to EUR 28.6 million at year-end 2023. The decrease reflects investments made during the period. Total equity amounted to EUR 67.5 million (EUR 70.3 million). Changes from year-end reflects the net loss in the period.

HySynergy 1 update

On 24 April 2024, Everfuel provided an update on the commissioning of the 20 MW HySynergy 1 electrolyser with focus on sub-systems required to start production and delivery of green hydrogen. The main electrolyser facility is ready for start-up, while some sub-systems experience delays following commissioning tests. This is impacting the planned start-up of the HySynergy 1 facility with production now expected to commence in the second half of 2024.

Testing, verification and certification is being executed in close cooperation with the electrolyser supplier, Nel, and other sub-suppliers with focus on the following areas; Gas holder rebuild, high-pressure systems, compressors and finalisation of software and automation, documentation and certifications. Everfuel and sub-suppliers have committed highest attention and priority for completing the remaining commissioning steps which are strongly interdependent with certain steps subject to specific time windows for external expertise to undertake testing and verification. As a consequence of the mentioned activities, commissioning of the main compressor, final validation of the high -pressure system and completion of the automation and software system are affected.

Outlook

Everfuel maintains a high level of activity related to multiple business development projects. For 2024, the completion of the HySynergy 1 commissioning and start of hydrogen deliveries will be the first major milestone. Everfuel continues to progress HySynergy 2 towards FID and are maturing the other large-scale electrolyser projects to be executed as SPVs under the strategic collaboration with Hy24.

The JV with Hy24 and the cooperation with ITOCHU and Osaka Gas are part of Everfuel’s strategy to systematically build a strong foundation for capitalisation of large-scale electrolyser projects under development. In 2024, the Company will continue to strengthen this foundation as part the ongoing engagement with existing and potential new strategic partners which support execution of Everfuel’s green hydrogen growth ambitions.

The financial results for the first quarter of 2024 reflect that the company is still in the initial stages of commercialising the green hydrogen value chain. HySynergy 1 is expected to have material positive impact on revenue generation when it is in operation. The delayed start-up will impact cash flow from hydrogen sales, however, Everfuel expects to have liquidity to finance the current approved investments well into 2025 before requiring additional equity. Longer-term, the combination of increased green hydrogen production, distribution and end-user deliveries are expected to drive revenue growth and cash generation. For 2024, Everfuel maintains the expectation to report a negative financial result, in the range of EUR 15 to EUR 11 million, with a significant improvement in cash flow compared to 2023.

Webcast

CEO Jacob Krogsgaard and CFO Jesper Ejlersen will present the company's results today at 09:00 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: Q1 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, jej@everfuel.com
Mads Tirsgaard Mortensen, Investor Relations Director, Everfuel, mm@everfuel.com, +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.