Ballard Power Q3 Figures: Total Sales At Previous Year's Level - Losses Increase
Vancouver, Canada - Fuel cell specialist Ballard Power reported year-over-year revenue slightly below last year's level in the third quarter of 2021 (Q3 2021) across all divisions, but at the same time posted a sharp widening of losses.
Sales stable - shipments to China falter - losses widened
Ballard Power reported revenue of $25.2 million for the third quarter of 2021 across all business segments. Compared to the same quarter last year, this represents a slight decrease of 1.6 percent (Q 3 2020: $25.6 million).
Proportionately, $16.3 million of the total revenue was generated by the Fuel Cell Products and Services division, up 5.8 percent from the year-ago quarter (Q3 2020: $15.4 million). In the Technology Solutions division, Ballard generated revenue of $9.0 million in Q3. Compared to Q3 2020, this is a decrease of 12.6 percent (Q3 2020: USD 10.3 million).
In the further differentiation of the Fuel Cell Products and Services sector, Heavy Duty Motive accounted for the largest share of revenue at USD 11.2 million. However, due primarily to lower deliveries of fuel cell products to customers in China, there was a year-on-year decline of 13.2 percent (Q3 2020: USD 12.9 million). This is followed by the Material Handling segment with USD 3.1 million, an increase of about 120 percent compared to the third quarter of 2020 (Q3 2020: USD 1.4 million), which Ballard said was primarily due to higher shipments to Plug Power. In the Backup Power segment, revenues increased by about 90 percent to $1.9 million (Q3 2020: $1 million).
Adjusted EBITDA in the third quarter was minus USD 23.1 million (prior-year quarter: minus USD 7.7 million). On balance, a net loss of USD 30.8 million remains in the third quarter, which corresponds to a significant expansion of 175 percent compared to the prior-year quarter (Q3 2020: minus USD 11.2 million). Per share, this results in a loss of 10 cents in Q3 2021 (Q3 2020: - 5 cents per share).
In the second quarter, Ballard received new orders worth approximately USD 20.5 million and delivered orders worth approximately USD 25.2 million. Backlog at the end of Q3 was $108.5 million, down $4.8 million compared to backlog as of the end of Q2 2021.
Fuel cell environment continues to improve
From Ballard Power's perspective, the company's performance is supported by orders, primarily in the commercial vehicle sector (fuel cell buses and trains), as well as strategic moves and collaborations. These include the recently announced order for the supply of 40 fuel cell modules for various European countries. Strategic partnerships include cooperation with Quantron, a German e-mobility specialist in passenger and freight transport. The initial collaboration will see Ballard's fuel cell modules integrated into Quantron's electric powertrain and vehicles.
"While we have been challenged with protracted delays in China, as well as unprecedented global supply chain constraints, we are enjoying record levels of customer engagement across our application verticals in Europe and North America. We are set up for an exciting year in 2022, marked by increased investment, important customer wins, continued product innovation and cost reductions, and the start of a long-term revenue ramp," said Ballard CEO MacEwen, optimistic about the company's future performance.
Ballard Power share under heavy pressure
After the Ballard Power share was able to gain 10.1 percent to 17.80 euros on Monday, it was under considerable pressure in yesterday's trading. Overall, the Ballard Power share, which is listed in the regenerative share index RENIXX World, fell by 13.3 percent to a price of 14.56 euros (09.11.2021, closing price, Stuttgart Stock Exchange). Since the turn of the year, the Ballard share has thus lost around 19 percent.
Source: IWR Online, 10 Nov 2021