Half Year Results for the Six Months to 31 October 2021

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces half year results for the six-month period ended 31 October 2021. Comparable figures, where stated, refer to the corresponding period in 2020 unless otherwise indicated.

Backlog and Pipeline| Reiterated from the Trading Update on 16 December:

• Backlog of 499 MW as at 27 January
  • Contracted: 86 MW compared to 62 MW in December
  • In negotiation: 315 MW compared to 339 MW in December
  • Preferred supplier: 98 MW unchanged versus December
• Tender pipeline of 880 MW compared to 331 MW in January 2021

Work in Progress* – 86MW (Jan 2022), +309%  (21MW Jan 2021)

Contracts backlog** – 499MW (Jan 2022), +206% (163MW Jan 2021)

Tender pipeline*** –  880MW (Jan 2022), +166% (331MW Jan 2021)

Backlog + Pipeline – 1,379MW (Jan 2022). +179% (494MW Jan 2021)

*Work in Progress – Contracted backlog

**Contracts backlog – Contracted backlog and contracts in the final stages of negotiation and preferred supplier backlog

***Tender pipeline – Quotations submitted in response to commercial tenders in the last 12 months

Commercial:

• Project win for 24 MW in ammonia application, awarded in January 2022
• Sinewave project grant from German government, awarded in January 2022
• Refhyne II consortium awarded a grant of €32.4m by CINEA (the European Climate, Infrastructure and Environment Executive Agency) for the development of a 100 MW electrolyser to be sited at Shell’s Energy and Chemicals Park, Rhineland – the project will see an engineering design phase which will be followed by a final investment decision (FID) expected in late 2022 with delivery then scheduled for 2024
• Contract signed for delivery of 12MW of electrolysis equipment to be deployed in 2022, and recognised in the 2022/23 financial year
• In November, UK Government Investment secured for Phase 1 of ScottishPower’s 20 MW Whitelee Windfarm hydrogen production and storage facility

Operational:

• Appointment of Principal Contractor Glencar Construction for the second UK factory for early design work
• Refhyne I commissioning ongoing post switch-on and due for completion in Q1 2022
• Gigastack I Project with BEIS successfully concluded to build prototype short stack Gigastack product

Financial:

• Revenue of £4.2m (£0.2m), prior year reflecting impact of Covid-19 issues
• Gross loss £2.6m (£2.8m)
• Adjusted EBITDA Loss of £12.9m (loss of £10.4m)
• Cash balance (excluding restricted balances) of £164.2m (£25.9m) at period end
• Current cash of c.£390m after fund raise net proceeds of £242m received in November
• Cash burn* of £11.8m (£14.0m)

*Cash burn is a non-statutory measure. 

Outlook:

• Full year guidance of 33-50 MW products
• Stacks to be included in standard products in excess of 55 MW
• Revenue for standard product projects recognised at point-in-time:
  • Leuna (24MW) obligations now forecast to conclude in late April.
  • Leuna delivery close to year end presenting a timing risk
• Continued long-term growth in tender pipeline and backlog expected
• Spades in the ground in H2 calendar year 2022 for 2nd UK factory

Graham Cooley, CEO, commented: “We are making very solid progress, with a number of projects won which have resulted in a significant increase in our work in progress. The Company is focussed on delivery of products and converting the tender pipeline into contracted projects.”

Sir Roger Bone, Chairman, added: “The Company has invested heavily in skills and technology over the last year, and we now have a team of highly experienced professionals driving the business forward. The global market for green hydrogen is a dynamic new industry and ITM Power is very well placed as a global market leader. We look forward to announcing further contract wins in the period ahead.”

In the film below ITM Power CEO Graham Cooley provides an outline of ITM Power’s business and the future for the renewable energy sector