Amid the global changes brought upon by the coronavirus outbreak, New York hydrogen fuel cell system provider Plug Power has reported its quarter one (Q1) results with gross billings totalling $43m.
During the quarter the company deployed over 1,000 fuel cell systems and had billings associated with four hydrogen infrastructure programmes.
Service costs were unusually high for directs and power purchase agreement customers in the first quarter given the unexpected peaking period due to the coronavirus.
In the financial report, Plug Power reaffirmed its guidance to achieve $300m in gross billings in 2020, which represents more than 25% growth year over year.
Recognising the current situation, the company said, “This pandemic is causing a global economic slowdown, affecting business and families around the world. No one is immune from the magnitude of this economic downturn”
“We at Plug Power are also impacted by this, but given our mix of customers and product offerings, we remain on track to deliver on our stated objective of gross billings guidance for full-year 2020.”
“More specifically, we are seeing increasing demand from our customers focused on delivery of mission critical products and online sales which should offer the anticipated slowdown for our manufacturing customers, particularly automotive customers.”
“In addition, recurring revenue from long term contracts, which annually can be expected to represent at least 30% of sales, also provides a bugger to our full year forecast in these times of economic uncertainties.”
During the quarter, Plug Power was focused on innovation. Q1 saw the company launch its 125kW ProGen hydrogen engine for heavy-duty applications, including class 6, 7 and 8 trucks, transit buses, various port applications and large-scale data centres.
The quarter also saw a new partnership with Lightning Systems. Through which the two companies will build the world’s first electric fuel-cell powered class 6 trucks, capable of supporting middle-mile delivery logistics between warehouses and distribution centres.
“We remain focused on building the hydrogen economy,” Plug Power said in its financial statement.
“We have already initiated key steps towards vertical integration of hydrogen generation business while continuing to work with new and existing strategic partners.”
“Our 2024 targets remain $1bn in gross billings, $170m in operating income, and $200m in adjusted EBITDA.”