Ballard Power with Weak Quarterly Figures - Waiting for a Turnaround
Vancouver, Canada - Ballard Power has presented its financial figures for the first quarter of 2021, disappointing investors. The share price comes under pressure.
Revenue and operating result collapse - losses widened
Canadian fuel cell manufacturer Ballard Power has reported revenue of $17.6 million (USD million) for the first quarter of 2021 (Q1 2021). Compared to the same quarter last year, this represents a decline of about 26 per cent (Q1 2020: USD 23.8 million). Ballard Power thus clearly missed analysts' expectations. The adjusted EBITDA declines by 59 percent to minus USD 14 million in Q1 2021 (Q1 2020: USD -8.8 million). On balance, a loss of USD 17.8 million remains, which corresponds to a decline of 36 per cent compared to the same period last year (Q1 2020: USD -13.1 million). Losses per share are 0.06 cents, a 12 per cent deterioration compared to Q1 2020.
Revenues decline in most business segments
A differentiated analysis by business segment shows that revenues in the first quarter of 2021 are down in almost all segments. For example, sales in the Heavy Duty Motive segment declined 33 per cent to $6.9 million, according to Ballard Power, primarily due to lower shipments of products to China. In the Technology Solutions segment, sales declined by 29 percent to USD 8.2 million, mainly due to lower contributions from the cooperation with Audi. In the Backup Power business segment, lower deliveries of fuel cell stacks for emergency power supply in Asia are the reason for a 39 percent decline in revenue to USD 0.8 million. In contrast, sales in the Material Handling business segment grew by 148 percent to 1.7 million USD, which is mainly due to higher deliveries of fuel cell stacks to the competitor Plug Power, Ballard said.
Preparations for hydrogen economy worldwide - Ballard optimistic for market development
Despite the weak quarterly figures, Ballard Power is optimistic about further developments in view of the market-preparation measures that are evident in many regions and countries around the world. For example, the European Green Deal in the EU or the activities in the USA, China and India are setting the framework for the development of the market. Green hydrogen is therefore likely to be a future topic worldwide in any case.
“Supported by a strengthening policy backdrop and increased customer engagement, we have clearer line of sight on long-term growth in our core medium- and heavy-duty motive applications of bus, truck, rail and marine”, said Ballard Power President and CEO Randy MacEwen, looking ahead. The year 2021 will therefore be marked by increased and accelerated investment ahead of market tipping points, he added.
Share price drops significantly
Among investors, Ballard Power's quarterly figures are causing bad mood. After the publication of the figures, the RENIXX listed Group share loses on Tuesday (04.05.2021) 19 percent to a price of 13.60 Euro. In yesterday's trading (05.05.2021), the share fell by a further 5.4 percent to 12.87 Euro. Since the beginning of the year (2021), the Ballard Power share price has thus fallen by 28.4 percent. (all share price data Stuttgart Stock Exchange, Germany)
Source: IWR Online, 06 May 2021