Skip to main content

Plug Power Announces Key Developments and Strategic Milestones in Second Quarter 2024

SLINGERLANDS, N.Y., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced significant progress and strategic initiatives in the second quarter of 2024. These developments underscore the Company's commitment to advancing the hydrogen economy and solidifying its leadership position in the industry.

Financial Highlights

  • Q2 Financial Performance: Plug Power reported revenue of $143.4 million in Q2 2024, reflecting ongoing growth in its electrolyzer deployments and improved pricing on fuel and other product lines.
  • Net Loss: The Company recorded a net loss of $262.3 million in Q2 2024, influenced by strategic investments, market dynamics and ~$86 million of non-cash charges such as depreciation and amortization, stock-based compensation, provision for common stock warrants, inventory adjustments, and impairment charges. Plug Power also recorded an Earnings-Per-Share loss of $0.36 for Q2 2024.
  • Improvement in Hydrogen Margins: The Georgia plant's increased production capacity and strategic price increases across the hydrogen product portfolio have significantly improved hydrogen margins. This enhancement demonstrates Plug Power's ability to leverage its production capabilities and optimize pricing to boost financial performance.
  • Clean Hydrogen Production Tax Credit (PTC) Utilization: Plug Power became one of the first companies to leverage the PTC for its liquid hydrogen plant in Georgia, optimizing financial performance and enhancing shareholder value.

Key Appointments

  • Dean Fullerton Appointed as Chief Operating Officer (COO): Plug Power was pleased to announce the hiring of Dean Fullerton as COO. A veteran of the supply chain and logistics engineering industry, Mr. Fullerton brings 14 years of experience from Amazon where he was responsible for global engineering services and oversaw operations engineering, planning, analytics, reliability, and maintenance. His notable achievements include building the world’s most complex automated e-commerce network and leading Amazon's hydrogen economy team. Mr. Fullerton will play a critical role in enhancing Plug Power’s operational efficiency and profitability by driving strategic growth and operational excellence​​.

Operational and Strategic Highlights

  • Current and Future Electrolyzer Deployments: The Company deployed over $70 million of electrolyzer systems in Q2 2024, representing a major inflection point in the scaling of this new offering. This mainly reflects one and five MW systems which have been delivered and are commissioning at customer sites, with titles transferred and majority of cash received on these orders. Given final commissioning and testing requirements, the majority was not recognized as revenue in Q2 2024, but we expect the revenue to be recognized in the second half of 2024. Looking ahead, Plug Power plans to deploy an additional 100 MW of electrolyzers by the end of the year, further solidifying its position as a leader in the hydrogen industry and supporting global efforts to transition to renewable energy sources​.
  • Revenue Outlook: Plug Power anticipates its 2024 revenue to range between $825 million and $925 million. This forecast largely reflects the Company's expectation for revenue from our pipeline of orders in the electrolyzer, cryogenic, and material handling businesses in the second half of 2024.
  • Hydrogen Plant Joint Venture with Olin: Strong progress is being made on the new hydrogen plant, developed through a joint venture with Olin Corporation in Louisiana and is expected to commence commissioning in September 2024 and generate liquid hydrogen in Q4 2024. This collaboration aims to increase hydrogen production capacity and accelerate the adoption of clean energy solutions​.
  • Basic Engineer and Design Package (BEDP) Contracts: Plug Power has secured 7.5 gigawatts (GW) in global BEDP contracts, including a 3 GW contract with a significant customer in Australia for a green ammonia project that is moving forward with an Engineering, Procurement and Construction contractor. This partnership highlights Plug Power's ability to provide cutting-edge technology for sustainable energy projects today​.
  • Department of Energy (DOE) Loan Process: Plug Power is progressing with the DOE loan, which aims to support the expansion of its green hydrogen initiatives and infrastructure for up to six sites.
  • Remediation of Material Weaknesses: The Company has successfully remediated previously identified material weaknesses in its internal controls, strengthening its financial reporting processes and ensuring greater accuracy and reliability in its financial statements​.

CEO Statement

Plug Power CEO Andy Marsh stated: "The second quarter of 2024 has been pivotal for Plug Power as we continue to make strides in our strategic initiatives and operational capabilities. The addition of Dean Fullerton as COO strengthens our leadership team, and our recent achievements in electrolyzer deployments and partnerships demonstrate our unwavering commitment to advancing the hydrogen economy. We are excited about the opportunities ahead and remain focused on delivering sustainable energy solutions that drive value for our customers and stakeholders."

Conference Call

Plug Power has a scheduled conference call today, August 8, at 8:30 AM ET to review the Company’s results for the second quarter of 2024. Interested parties are invited to listen to the conference call by calling 877-407-9221 / +1 201-689-8597.

The webcast can be accessed at: https://event.webcasts.com/starthere.jsp?ei=1677284&tp_key=3bdba53db7

A playback of the call will be available online for a period following the event.

About Plug Power

Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the Company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.

With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants for commercial operation. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.

For more information, visit www.plugpower.com.

Plug Power Safe Harbor Statement 

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“Plug”), including but not limited to statements about Plug’s ability to provide cutting-edge technology for sustainable energy projects and solidify its position as a leader in the hydrogen industry; Plug’s ability to leverage its hydrogen production capabilities and optimize pricing to boost financial performance; Plug’s ability to leverage the PTC to optimize financial performance and enhance shareholder value; Plug’s projections regarding its financial outlook, including timing of revenue recognition of electrolyzer systems and its expectation regarding 2024 revenue; Plug’s plan to deploy an additional 100 MW of electrolyzers by the end of the year; Plug’s expectation that its hydrogen plant in Louisiana will commence commissioning in September 2024; Plug’s expectation that Mr. Fullerton will enhance its operational efficiency and profitability by driving strategic growth and operational excellence; and Plug’s expectation with respect to its conditional commitment loan guarantee from the United States Department of Energy (DOE).

You are cautioned that such statements should not be read as a guarantee of future performance or results as such statements are subject to risks and uncertainties. Actual performance or results may differ materially from those expressed in these statements as a result of various factors, including, but not limited to, the following: the risk that our ability to achieve our business objectives and to continue to meet our obligations is dependent upon our ability to maintain a certain level of liquidity, which will depend in part on our ability to manage our cash flows; the risk that we may not satisfy all of the conditions on terms acceptable to the DOE to receive the loan guarantee; the risk that we may continue to incur losses and might never achieve or maintain profitability; the risk that we may not realize the anticipated benefits and actual savings in connection with the restructuring; the risk that we may not be able to raise additional capital to fund our operations and such capital may not be available to us on favorable terms or at all; the risk that we may not be able to expand our business or manage our future growth effectively; the risk that we may not be able to maintain an effective system of internal control over financial reporting; the risk that global economic uncertainty, including inflationary pressures, fluctuating interest rates, currency fluctuations, and supply chain disruptions, may adversely affect our operating results; the risk that we may not be able to obtain from our hydrogen suppliers a sufficient supply of hydrogen at competitive prices or the risk that we may not be able to produce hydrogen internally at competitive prices; the risk that delays in or not completing our product and project development goals may adversely affect our revenue and profitability; the risk that our estimated future revenue may not be indicative of actual future revenue or profitability; the risk of elimination, reduction of, or changes in qualifying criteria for government subsidies and economic incentives for alternative energy products, including the Inflation Reduction Act and our qualification to utilize the PTC; and the risk that we may not be able to manufacture and market products on a profitable and large-scale commercial basis. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission, including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2023, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, as well as any subsequent filings. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. We disclaim any obligation to update forward-looking statements except as may be required by law.

Media Contact:
Fatimah Nouilati
Plug Power Inc.
Email: PlugPR@plugpower.com


Plug Power Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
      
 June 30, December 31,
 2024  2023 
Assets     
Current assets:     
Cash and cash equivalents$62,359  $135,033 
Restricted cash222,847  216,552 
Accounts receivable, net of allowance of $7,485 at June 30, 2024 and $8,798 at December 31, 2023 189,863   243,811 
Inventory, net 939,534   961,253 
Contract assets 132,900   126,248 
Prepaid expenses and other current assets 124,919   104,068 
Total current assets1,672,422  1,786,965 
      
Restricted cash$733,700  $817,559 
Property, plant, and equipment, net 1,509,693  1,436,177 
Right of use assets related to finance leases, net 54,735   57,281 
Right of use assets related to operating leases, net376,106   399,969 
Equipment related to power purchase agreements and fuel delivered to customers, net117,335  111,261 
Contract assets29,531  29,741 
Intangible assets, net178,338   188,886 
Investments in non-consolidated entities and non-marketable equity securities96,814  63,783 
Other assets 11,179   11,116 
Total assets$4,779,853  $4,902,738 
     
Liabilities and Stockholders’ Equity     
Current liabilities:     
Accounts payable$253,715  $257,828 
Accrued expenses112,612   200,544 
Deferred revenue and other contract liabilities174,828   204,139 
Operating lease liabilities 66,405   63,691 
Finance lease liabilities 10,159   9,441 
Finance obligations 85,642   84,031 
Current portion of long-term debt3,030  2,716 
Contingent consideration, loss accrual for service contracts, and other current liabilities103,223  142,410 
Total current liabilities809,614  964,800 
    
Deferred revenue and other contract liabilities$71,018  $84,163 
Operating lease liabilities 264,251   292,002 
Finance lease liabilities30,573   36,133 
Finance obligations 245,011   284,363 
Convertible senior notes, net208,576  195,264 
Long-term debt2,400  1,209 
Contingent consideration, loss accrual for service contracts, and other liabilities 159,830   146,679 
Total liabilities1,791,273  2,004,613 
     
Stockholders’ equity:     
Common stock, $.01 par value per share; 1,500,000,000 shares authorized; Issued (including shares in treasury): 806,993,410 at June 30, 2024 and 625,305,025 at December 31, 2023$8,070  $6,254 
Additional paid-in capital8,137,182   7,494,685 
Accumulated other comprehensive loss(1,949)  (6,802)
Accumulated deficit (5,047,853)  (4,489,744)
Less common stock in treasury: 19,360,457 at June 30, 2024 and 19,169,366 at December 31, 2023 (106,870)  (106,268)
Total stockholders’ equity 2,988,580   2,898,125 
Total liabilities and stockholders’ equity$4,779,853  $4,902,738 
      


Plug Power Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
            
 Three months ended Six months ended
 June 30, June 30,
 2024  2023  2024  2023 
Net revenue:           
Sales of equipment, related infrastructure and other$76,788  $216,286  $145,083  $398,380 
Services performed on fuel cell systems and related infrastructure 13,034   8,701   26,057   17,798 
Power purchase agreements 19,674   16,130   37,978   24,067 
Fuel delivered to customers and related equipment 29,887   17,878   48,173   28,020 
Other 3,967   1,187   6,323   2,203 
Net revenue$143,350  $260,182  $263,614  $470,468 
Cost of revenue:           
Sales of equipment, related infrastructure and other 129,911   187,408   265,036   345,728 
Services performed on fuel cell systems and related infrastructure 13,730   23,449   26,687   35,670 
Provision for loss contracts related to service 16,484   7,331   32,229   14,220 
Power purchase agreements 54,312   53,976   109,540   100,792 
Fuel delivered to customers and related equipment 58,317   64,450   116,890   118,951 
Other 1,851   1,711   3,562   2,646 
Total cost of revenue$274,605  $338,325  $553,944  $618,007 
            
Gross loss$(131,255) $(78,143) $(290,330) $(147,539)
            
Operating expenses:           
Research and development 18,940   29,251   44,220   55,786 
Selling, general and administrative 85,144   101,154   163,103   205,170 
Restructuring 1,629      7,640    
Impairment 3,937   9,986   4,221   11,069 
Change in fair value of contingent consideration 3,768   15,308   (5,432)  24,077 
Total operating expenses$113,418  $155,699  $213,752  $296,102 
            
Operating loss (244,673)  (233,842)  (504,082)  (443,641)
            
Interest income 7,795   16,391   17,072   34,023 
Interest expense (9,511)  (11,265)  (20,836)  (21,915)
Other expense, net (9,080)  (5,082)  (16,076)  (9,853)
Realized gain on investments, net    264      263 
Change in fair value of equity securities    3,842      8,917 
Loss on equity method investments (7,240)  (7,623)  (20,353)  (12,940)
Loss on extinguishment of convertible senior notes       (14,047)   
            
Loss before income taxes$(262,709) $(237,315) $(558,322) $(445,146)
            
Income tax benefit 376   917   213   2,187 
            
Net loss$(262,333) $(236,398) $(558,109) $(442,959)
            
Net loss per share:           
Basic and diluted$(0.36) $(0.40) $(0.81) $(0.75)
            
Weighted average number of common stock outstanding 736,848,684   598,053,390   688,900,904   593,653,720 
            


Plug Power Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 Six months ended June 30,
 2024  2023 
Operating activities     
Net loss$(558,109) $(442,959)
Adjustments to reconcile net loss to net cash used in operating activities:     
Depreciation of long-lived assets 34,603   21,266 
Amortization of intangible assets 9,434   9,755 
Lower of cost or net realizable value inventory adjustment and provision for excess and obsolete inventory 53,359   11,760 
Stock-based compensation 40,013   83,220 
Loss on extinguishment of convertible senior notes 14,047   - 
(Recoveries)/provision for losses on accounts receivable (1,313)  896 
Amortization of (premium)/discount of debt issuance costs on convertible senior notes and long-term debt (718)  1,195 
Provision for common stock warrants 10,327   14,302 
Deferred income tax (benefit)/expense (213)  1,512 
Impairment 4,221   11,069 
Loss on service contracts 7,292   856 
Fair value adjustment to contingent consideration (5,432)  24,077 
Net realized loss on investments -   (263)
Accretion of premium on available-for-sale securities -   (5,949)
Lease origination costs (2,467)  (5,567)
Change in fair value for equity securities -   (8,917)
Loss on equity method investments 20,353   12,940 
Changes in operating assets and liabilities that provide/(use) cash:     
Accounts receivable 55,261   (88,091)
Inventory (11,925)  (269,707)
Contract assets (2,897)  (23,807)
Prepaid expenses and other assets (20,864)  9,178 
Accounts payable, accrued expenses, and other liabilities (15,818)  (720)
Payments of contingent consideration (9,164)  (2,895)
Deferred revenue and other contract liabilities (42,456)  21,838 
Net cash used in operating activities$(422,466) $(625,011)
      
Investing activities     
Purchases of property, plant and equipment (193,923)  (319,322)
Purchases of equipment related to power purchase agreements and equipment related to fuel delivered to customers (11,022)  (19,309)
Proceeds from maturities of available-for-sale securities -   908,749 
Proceeds from sales of equity securities -   76,263 
Cash paid for non-consolidated entities and non-marketable equity securities (63,713)  (40,894)
Net cash (used in)/provided by investing activities$(268,658) $605,487 
      
Financing activities     
Payments of contingent consideration (1,836)  (10,105)
Proceeds from public and private offerings, net of transaction costs 572,120   - 
Payments of tax withholding on behalf of employees for net stock settlement of stock-based compensation (602)  (2,954)
Proceeds from exercise of stock options 67   732 
Principal payments on long-term debt (685)  (5,407)
Proceeds from finance obligations -   77,589 
Principal repayments of finance obligations and finance leases (42,313)  (34,211)
Net cash provided by financing activities$526,751  $25,644 
Effect of exchange rate changes on cash  14,135   (2,139)
Decrease in cash and cash equivalents  (72,674)  (111,212)
(Decrease)/increase in restricted cash (77,564)  115,193 
Cash, cash equivalents, and restricted cash beginning of period 1,169,144   1,549,344 
Cash, cash equivalents, and restricted cash end of period$1,018,906  $1,553,325 
      

Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.