PowerCell reports net sales increase with fuel cell interest from marine and aviation

PowerCell has reported an increase in sales for both the fourth quarter and entire year of 2023, despite facing profitability and operational challenges.

During Q4 2023, the company achieved a 25% increase in net sales, reaching SEK 127.5m ($12.2m) up from SEK 101.8m ($9.7m) in Q4 2022. This growth was due to “significant” orders within the aviation and marine sectors.

During the full year, PowerCell’s net sales increased by 27% to SEK 310.3m ($29.6m), compared to SEK 244.7m ($23.4m) in 2022, setting a new sales record for the company.

However, the Swedish company faced challenges in profitability and cash flow. Despite gross profits for the year rising by 10%, the gross margin decreased from 46.2% to 40%, due to a mix of product sales, yielding lower margins and reduced income.

PowerCell also reported a downturn in operating income for the year, a loss of SEK -72.6m ($-6.9m) for the year, although it narrowed its losses from 2022. A negative cash flow for 2023 of SEK -95.7m ($-9m) was also reported.

The company’s CEO, Richard Berkling, explained that 2023 was characterised by the ramp-supporting two ferries that will operate Norway’s longest ferry route.

Read more: PowerCell to supply hydrogen solutions for Norwegian ferries

“It is positive that we now see that the market is becoming increasingly agnostic when it comes to the production of hydrogen,” Berkling added. “Before the demand can be completely covered with green hydrogen, other sources such as methanol and ammonia are much better alternatives for the supply of hydrogen than continued use of fossil fuels.”

Last December (2023), PowerCell also took the first step from the Nasdaq First North Growth Market to Nasdaq Stockholm’s main list to, in Berkling’s words, “enhance our visibility to investors and other stakeholders.”

The growth of the hydrogen industry and the implementation of emission-free fuel cell systems in commercial operations are believed to have driven the positive results in PowerCell’s financials.

This will prove to be encouraging for PowerCell, after agreeing to manufacture fuel cell stacks in collaboration with Robert Bosch. The agreement is expected to allow PowerCell to increase its capacity and focus on scaling up the assembly and deliveries of its fuel cell systems.

The company is aiming to deliver its fuel cell stacks in the time period between 2024 and 2028.

Read more:Bosch and PowerCell to collaborate on fuel cell stacks

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