Ballard Power Publishes 2020 Figures - Stagnation in Revenue and Higher Losses
Vancouver, Canada - Ballard Power has released its fourth quarter and full year 2020 financials. For the year, 2020 revenues are stagnant, while losses are up. The share price is rising. Ballard Power is not making a forecast for 2021, citing the early market stage of fuel cells and the ongoing COVID-19 pandemic.
Full-year 2020 revenue down 2 per cent, losses up 40 percent
Ballard Power reported total revenue of $103.9 million (m) in 2020. Compared to the previous year 2019, this is a decrease of 2 percent (2019: $105.7 million). Differentiated by division, the fuel cell specialist recorded revenue of $58.6 million in the Power Products (fuel cells and services) division, up 19 percent year-on-year (2019: $49.1 million). This was primarily due to higher shipments of Heavy-Duty Motive fuel cell products to customers, particularly in China, and higher shipments of backup power products to customers in Europe, Ballard said. In contrast, revenues in the Technology Solutions category declined significantly by 20 percent to $45.3 million (2019: $56.6 million). Ballard cites lower amounts earned from technology programs with Audi, Siemens and Weichai-Ballard JV as the primary cause. Gross margin was 20 percent, down 1 percent to $21.0 million. Full-year 2020 net loss of minus $49.5 million is about 40 percent higher than in the previous year (2019: minus $35.3 million). Per share, this puts the loss at minus $0.20 (2019: minus $0.15/share).
Ballard Power President and CEO Randy MacEwen expressed overall satisfaction with the company's performance, saying, "Our Q4 and full year 2020 results were consistent with management’s internal projections based on expected impacts from COVID-19. In Q4 and throughout 2020, COVID-19 created uncertainty and adversely impacted operations for certain customers along with order intake, although we saw higher than expected activity levels in our sales pipeline", MacEwen said.
In addition, continued progress in executing the 2020 growth strategy was reflected in a number of notable achievements, Ewen added. According to the Ballard Power CEO, these included the commissioning of the Weichai-Ballard joint venture in China, the announcement of a strategic partnership with MAHLE to develop advanced fuel cell engines for the European commercial truck market, continued progress with bus OEM customers, and the launch of the new 200-kilowatt engine for marine applications.
2021 Markets for buses, commercial vehicles, trains and ships in focus
Looking ahead to 2021, Ballard announces its intention to maintain focus on Heavy-Duty and Medium Duty Applications, including the bus, commercial truck, train and marine markets, in order to increase market penetration in key markets in China, Europe and California. Ballard Power also sees opportunities in additional geographic markets and therefore anticipates projects that will begin expanding reach beyond these initial key markets. To that end, Ballard plans to invest in additional technology and product innovation and development across bus, truck, rail and marine markets, including next-generation MEAs, plates, stacks and modules.
Consistent with the company's practice, Ballard Power is not providing any statements with respect to performance guidance for the current 2021 year due to the early stage hydrogen fuel cell market development and given the continued uncertainties resulting from the COVID-19 pandemic.
Share price climbs
Ballard Power's stock gained 9.6 percent tot 21.71 Euros in yesterdays trading (11-03-21, closing price, Stuttgart Stock Exchange). However, the share is thus around 38 percent below the annual high of 34.8 euros on February 9, 2021. Over the year, the Ballard share price is currently up around 21 percent.
Source: IWR Online, 12 Mar 2021