UK electrolyser maker ITM Power Plc (LON:ITM) on Tuesday posted an adjusted EBITDA loss of GBP 54.1 million (USD 66.5m/EUR 61.4m) for the six month through October 2022 period, compared to a loss of GBP 12.9 million a year earlier, as it presented its 12-month plan to solidify the business.
The company also unveiled two contracts, each for 100 MW of PEM (polymer electrolyte membrane) electrolysers, with Linde Engineering.
ITM Power already warned earlier this month that its results for the financial year through April will differ materially from its guidance. It now said it expects full-year revenue of around GBP 2 million and a loss on adjusted earnings before interest, tax depreciation and amortisation (EBITDA) of between GBP 85 million and GBP 95 million. Net cash at the end of the year is expected to be in the range of GBP 245 million-270 million, compared to GBP 318 million at the end of the first half.
“We raised capital to pursue an expansion strategy and in doing so underestimated the competencies and capabilities required to scale up and to transition from an R&D company to a volume manufacturer. As a consequence, we set unrealistic targets for project completion. This has produced an unacceptable financial performance,” said chairman Roger Bone.
The response of new chief executive Dennis Schulz includes narrowing product focus and more rigorous approach to managing cost, which will include a 25% headcount reduction.
“Most issues today arise from immature engineering processes, which materialise during manufacturing and lead to project delays and cost overruns. As one key priority, we will change the way we engineer our products and control design changes,” the CEO said.
Of the two 100-MW contracts the company said that they are the largest PEM electrolysers under execution globally today. The plants will mark the first deployment of the Linde Engineering/ITM Power 10 MW standard module skids for large-scale installations and are expected to be a key milestone on the company’s path towards high volume manufacturing.
(GBP 1 = USD 1.230/EUR 1.135)
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