McPhy Energy : a positive start to 2019 despite an operating income fall in 2018 as expected

 Press ReleaseMcPhy: a positive start to 2019 despite an operating income fall in 2018 as expected A 21% drop in revenue in 2018 compared to 2017, due notably (and as previously announced[1]) to delays in the finalization of several orders As expected operating income for 2018 is...

London, 12/03/2019 (informazione.news - comunicati stampa - energia)

a specialist in hydrogen production and distribution equipment, is today announcing its results for 2018, which were approved by the company's Board of Directors.

The increase in external costs and provisions was due to delays in the finalization of several orders, the extension of the duration of certain projects and additional costs incurred in the installation phases of these initial reference projects for McPhy. This resulted in an expected 47% drop in operating income in 2018 compared to 2017, to -€9.4 million.

The lessons learned on these first contracts have been factored in for contracts due to be delivered from 2019 on, and provisions have been made for additional costs to neutralize their impact on 2019 figures. Furthermore, despite the revenue decline, McPhy continued to strengthen its research and innovation efforts.

At December 31, 2018, McPhy had cash assets of €14.9 million, boosted by transactions to strengthen capital carried out in 2018.

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       ·          : the State Minister for Ecological and Inclusive Transition, launches a strategic plan to support the deployment of hydrogen technologies and establish France as a leader in this area. In 2019, €100 million will be devoted to the deployment of low-carbon hydrogen in industry, mobility and energy. McPhy welcomes this extremely positive signal for the deployment and use of clean hydrogen, which will largely be produced by the electrolysis of water;

      ·          publication of the final text of the Renewable Energy Directive (RED II) in the Official Journal of the European Union. This Directive sets shared EU-wide targets for use of renewable energy. It also undertakes to increase renewable energy use to 32% of total energy consumption by 2030. The Directive thus opens up new prospects in markets for clean hydrogen in heavy industry.

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·          : launch of a new generation of electrolyzers, the "Augmented McLyzer", for platforms from 20MW to over 100MW, created under the technological partnership between McPhy and De Nora. These electrolyzers will support scaling-up for clients, allowing the mass production of hydrogen at competitive cost. This equipment incorporates the latest technological innovations in electrolysis. The combination of De Nora's advanced electrodes and McPhy's high-pressure (30 bar) electrolysis doubles the output of electrolysis cells, and maintains a high energy yield;

·          strengthening of McPhy's mobility offering with a range of dedicated filling stations for 700-bar vehicles. Trials conducted jointly with Toyota, a leader in low-carbon mobility, proved positive and allowed the design of the first series of stations to be finalized at the end of 2018. McPhy has thus positioned itself in the dynamic market for 700-bar stations, with the McFilling 200-700, and this position was boosted by an initial order for a 200kg/day 700-bar station to be installed at the end of 2019 near Berlin, Germany.

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-          : McPhy receives an order for a second hydrogen station with electrolyzer from CNR and ENGIE GNVert in Lyon;

-          the Group wins its first contract for a hydrogen bus filling station from SMT-AG serving the Lens-Béthune conurbation. This 200kg/day 350-bar station, combined with a 500kW electrolyzer, can supply 10 buses. It is expected to come into use in the first half of 2019;

-          ENGIE launches the biggest fleet of hydrogen-powered utility vehicles and its first alternative multi-fuel station in France. Located at the heart of Rungis International Market, the hydrogen station, designed and manufactured by McPhy, will supply this fleet of 50 vehicles.

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-          ENGIE Cofely launches its industrial scale renewable hydrogen production unit at Pôle Utilités Services in Grenoble. McPhy supplied the unit's clean hydrogen production and storage equipment.

-          ENGIE opens the GRHYD platform in Dunkirk. This project forms a strategic part of the Hydrogen Plan launched by the government on June 1, 2018, which will provide technical and economic data on hydrogen injection; McPhy is taking part via the project's use of its hydrogen storage module.

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·          the Group joins the Hydrogen Council. This unique global initiative aims to demonstrate the potential of hydrogen as a key solution in energy transition. Members of the Hydrogen Council have indicated their desire to step up investment in the development and marketing of hydrogen and fuel cells. Their combined investment is currently estimated at €1.4 billion per year . McPhy is working with global groups on the 'scaling up' of the hydrogen economy.

·          : McPhy signs an industrial and commercial partnership with EDF, a world leader in low-carbon energy, to develop low-carbon hydrogen in France and internationally. This partnership along with additional financial resources will help McPhy step up the pace of growth, strengthen the development of its sales team and conquer new markets. The partnership is now fully operational and has manifested itself in shared tender bids for bus filling stations of several hundred kg/day including electrolyzers, and platforms to supply hydrogen trains and river barges of more than 1 tonne/day.

As announced on March 5, 2019, McPhy has seen a positive start to 2019, with more than €5 million in orders received covering 4 projects:

These new projects increase to 21 the number of McFilling stations installed or currently being installed, together representing a daily potential of 64,500km in zero emission mobility;

These commercial successes demonstrate that the delayed orders initially anticipated in 2018 have now materialized, and that the Group's top-line business momentum is right on track.

Lastly, conditions in the hydrogen sector remain very strong and offer many new prospects. In France, the Programmation Pluriannuelle de l'Energie project has reaffirmed the key role to be played by hydrogen in meeting the huge challenges of energy transition: 24 applications have been submitted to Ademe under its first call for "Hydrogen ecosystems and mobility" projects. This call for projects was followed by a second one which opened up new prospects for clean hydrogen use in heavy industry released on February 25, 2019.

Lastly, the recent approval of the EU RED II Directive, setting shared targets for the European Union for consumption of renewable energy, has opened up new prospects for the market for clean hydrogen for use in heavy industry.

Against this background, McPhy has confirmed growth in its business backed by a qualified sales pipeline of €80 million.

2019 first half results - Thursday July 30, 2019 after market close