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Hydrogen fuel cell company Connect the power (PLUG) recorded a larger than expected loss in the fourth quarter and recorded negative revenues. The stock of PLUG has fallen.
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Losses per share widened to $ 1.12 from 7 cents in the last year’s quarter, seriously missing expectations of a loss of 8 cents per share. Negative revenue of $ 316.3 million was down from a gain of $ 91.7 million in the last year quarter and worse than views for $ 84.9 million.
The company had offered PLUG stock warrants to large clients such as Amazon (AMZN) and Walmart (WMT) in exchange for purchased fuel cells.
In the fourth quarter, Plug Power recorded costs of $ 456 million, most of which were “non-cash charges related to the accelerated acquisition of a customer’s remaining warrants.”
As PLUG stock started to soar last fall, as Joe Biden’s election raised hopes for green energy policies, these warrants have become more interesting to exercise. On Thursday, Plug Power said its customer warranty program was fully spent.
But Plug Power posted record gross billings last year, with $ 96.3 million in the fourth quarter and $ 337.4 million for the full year.
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Plug in the still bullish power in 2021
PLUG stock fell 6% to 47.03 in the stock market today and hit resistance at its 50-day line, according to MarketSmith chart analysis. Among other stocks of fuel cells, FuelCell Energy (FCEL) fell 4.6%, Ballard Power Systems (BLDP) was down 2.9%, and Bloom Energy (BE) fell 3.3%.
Despite losses in the fourth quarter, Plug Power said it was on track to meet its recently raised 2021 and 2024 gross billing targets. In January, the company raised its outlook for 2021 to $ 475 million, from $ 450 million previously. Longer-term, management has raised its gross billing target for 2024 to $ 1.7 billion, up 40% from earlier forecasts.
The company has also expanded its operations overseas so far this year. South Korean conglomerate SK Group on Wednesday closed its $ 1.5 billion investment in a joint venture with Plug Power to develop hydrogen power in Asia. The JV should be launched this year.
Follow Gillian Rich on Twitter for energy news and more.
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