Everfuel – Q2 2023: Realignment of strategy with focus on scaling green hydrogen production
Herning, 30 August 2023 – Everfuel A/S today published its second quarter and first half 2023 financial results.
Key events
- Realignment of strategy to focus on scaling green hydrogen production to capture significant value creation opportunities led by recent market developments in Germany and Denmark
- Restructuring of the hydrogen station network, technology development and organisation due to current immature mobility market and technology
- Reaffirmed focus on heavy duty vehicles for future hydrogen station network following final alternative fuels infrastructure regulation (AFIR) agreement and decommissioning of unprofitable legacy stations
- Revenue increase by factor of x4.5 compared to same quarter last year reflecting high activity level on station construction contracts in Germany, with revenue from hydrogen refuelling being stable over the quarter
- Updated timeline and project scope for HySynergy Phase 1 to ensure safe and efficient start-up expected in Q1 2024 with fully developed operational procedures and organisation
- Prioritising safe and secure operations, grounding hydrogen trailer fleet and subsequent shut down of hydrogen stations as precautionary measure due to leakage
- Progressing towards final closing of Hy24 JV transaction
- Cash position of EUR 27.1 million at end of June 2023 and liquidity budget expected to fund investment and operation plans into 2025
Everfuel's ambition is to make green hydrogen for zero emission industrial activity and mobility commercially available across 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.
Everfuel has made significant progress since listing on Euronext Growth Oslo in 2020. At the same time, immature technology, project complexities, delayed third-party hydrogen sources, supply chain constraints and cost inflation have impacted commercial and financial development. Further, the growth of green hydrogen market in Europe remains subject to protracted political processes, delayed roll-out of hydrogen vehicles at scale, a narrow pool of competent personnel as well as limited access to capital in the current market environment.
Based on recent market and corporate developments, Everfuel has decided to prioritise development of green hydrogen production capacity and reduce refuelling network investments by high grading the existing portfolio of refuelling stations and projects.
Jacob Krogsgaard, the CEO and founder of Everfuel, commented:
"We are very pleased to see increased momentum in Europe in support of green hydrogen across multiple dimensions, including the RED-II directive, the AFIR regulation, the European Hydrogen Backbone initiative and the recent agreement for a hydrogen pipeline connecting Denmark and Germany. Together, these form the foundation for unlocking a large European hydrogen market for which Everfuel is well positioned.
Still, we recognise, that as an early mover within green hydrogen, we are breaking new ground for a new industry and continuously contribute to constructive maturation of technology together with suppliers and stakeholders, exposing us to delays in political processes, immature technology, supply chain challenges, cost inflation and scarce resources including access to competence. Our ambition of EUR 1 billion revenue from green hydrogens sales to industry and mobility remains firm, but it will take longer to get there, and investments will be higher than we initially expected. Our realignment of strategy will reduce cash burn, add financial flexibility and is expected to enable us to finance the current planned investments into 2025 before requiring additional equity, supported by cashflow from HySynergy, the Hy24 JV, public grants and relevant project debt financing.”
Webcast:
CEO Jacob Krogsgaard 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 via the following link:
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 additional information, please contact:
Jacob Krogsgaard, CEO, Everfuel, +45 2871 8945
Mads Tirsgaard Mortensen, Investor Relations Manager, Everfuel, mm@everfuel.com, +45 7730 4727
About Everfuel | www.everfuel.com
Everfuel is making green hydrogen for zero emission industry and mobility commercially available across Europe, offering competitive all-inclusive hydrogen supply and fuelling solutions. We develop, 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 Norway, Denmark, Sweden, The Netherlands and Germany, 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.
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