McPhy expecting delays to group activity

McPhy expecting delays to group activity

McPhy is expecting delays to its order book as a result of the ongoing coronavirus pandemic.

A prominent player in the hydrogen energy sector, McPhy said its production sites in France and Germany have remained operational with limited on-site resources and strengthened safety conditions, whilst its Italian operations were suspended on 23rd March. Operations on McPhy’s San Miniato site are gradually resuming.

Within this uncertain context, McPhy has identified risks regarding delays in the execution of the French company’s contracts, notably due to the domino effect of any delays McPhy may see from its suppliers.

“At this stage, the extent of these delays cannot be accurately quantified, and will depend on the ability of the group’s suppliers to meet their own commitments, on the length of the restrictions put in place by the various governments, on the extent of the global resumption in activity and on the group’s ability to make up for the delays,” McPhy said in a statement.

“Moreover, the realisation of certain contracts with potential new clients is likely to be delayed or suspended due to the cancelling or pushing back of key sector events.”

“As a result, the group’s short and medium-term order book and revenue are likely to be affected by delays and impacts that are currently impossible to precisely estimate.”

In order to minimise the impacts on its cash position and to ensure the continuity of its operations, McPhy has implemented cost reduction measures and has planned to initiate the necessary procedures enabling it to benefit from the aid announced by the French Government and the European Union (partial activity measures, cancellation or deferral of tax payments, etc).

McPhy said it has also received an agreement in principle from its banking partners to formalise additional State-backed credit lines of €4m.

Lastly, in order to strengthen its financial flexibility and secure access to additional resources, the Company renewed on 10th April its equity financing line with Kepler Cheuvreux for a period of two years, representing an indicative amount of €18.3m.

Bolstered by a solid and secured financial situation to continue its activity, McPhy is confident in the pertinence of its corporate project to enable it to cope with the challenges of this pandemic.

The company is driven by robust fundamentals and the positive outlook for the hydrogen and energy transition market, which will be more relevant than ever in the post-crisis world.

McPhy said it is fully committed to achieving its ‘Driving Clean Energy Forward’ corporate project, which will accelerate the roll-out of zero-carbon ecosystems thanks to its zero-carbon hydrogen production and distribution equipment, and strongly believes in the possibility of seizing new opportunities once this global crisis is over.

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