Hydrogenpro Reports on Financial Performance and Strategic Developments

In a recent earnings call, Martin Holtet, CFO of Hydrogenpro, provided insights into the company's financial performance and strategic initiatives. The company's gross margin for the second quarter was reported at 22%, significantly affected by additional costs. However, Holtet indicated that, when adjusted, the margin could reach 62%, underscoring their goal for a considerably higher gross margin in the long term.

The company also addressed the impairment of NOK18 million concerning DG Fuels' convertible notes, primarily due to delays in a Louisiana project. The nominal value of these notes was NOK3 million; post-impairment, they now hold a value of USD1.2 million, which Holtet believes reflects the current project status accurately.

Regarding operational advancements, CEO Jarle Dragvik confirmed ongoing progress with the commissioning and start-up of the electrolyzer at the ACES project. He also expressed optimism regarding a potential new order of 100 megawatts from ANDRITZ, indicating positive expectations for its realization.

On collaboration, the test station established with Thermax will focus on testing materials for electrolyzer components, with all electrode production expected to occur in Aarhus, Denmark. Dragvik mentioned the possibility of creating an assembly entity in India contingent upon market growth.

Looking ahead, Dragvik highlighted Hydrogenpro's business model, which will center on technology development and forming strong partnerships for engineering, procurement, and construction (EPC) support, while retaining core technology ownership. Stability in the project pipeline was also noted, with some cancellations and delays balanced by new tender requests.

In conclusion, Hydrogenpro remains committed to enhancing its operational efficiency and expanding its market presence through strategic partnerships and technological advancement.