Nucera sees Q3 sales almost double, targets further growth

This post was originally published on this site

BERLIN (Reuters) -Thyssenkrupp Nucera on Monday reported strong growth in sales and operating income in its third quarter but warned that investment in plants for producing green hydrogen could weigh on earnings over the 2022/23 financial year.

Reporting its first financial results since a blockbuster market debut in July, the German hydrogen firm said sales grew by 90% year on year to 187.5 million euros. Earnings before interest and taxes (EBIT) rose 59% to reach 7 million euros.

“With the pleasingly high cash inflow from the IPO we are well equipped for the systematic and rapid implementation of the next steps in our growth strategy,” said finance chief Arno Pfannschmidt.

Nucera said it expected existing orders to drive continued strong sales growth in its current fiscal year.

However, necessary spending in water electrolysis plants for producing green hydrogen on an industrial scale was expected to weigh on the company’s EBIT margin, which came in at 3.7% in the third quarter, down from 4.4% a year prior.

In its presentation to investors, the Thyssenkrupp (ETR:TKAG) subsidiary flagged a negative EBIT margin expected in the next quarter due to the costs of its green hydrogen expansion.

However, it confirmed its mid- and long-term targets, adding that these costs were already planned into its goals for the 2023/24 financial year.

While in its infancy, so-called green hydrogen is produced using renewable energy and has been hailed as a potential route to a cleaner future for hard-to-decarbonise sectors.

Nucera offers technology to produce hydrogen via alkaline water electrolysis, the part of its business that investors are most keen on due to the fact that it can be scaled up quickly.