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Sep 30, 2023
Plug Power Q3 2023 Earnings Report
Plug Power reported Q3 2023 results with revenue of $199M, impacted by hydrogen network supply challenges.
Key Takeaways
Plug Power's Q3 2023 revenue reached $199 million, a 5% increase year-over-year, but the overall financial performance was negatively impacted by unprecedented supply challenges in the North American hydrogen network. The company is focused on operational scale, in-house hydrogen generation, and policy tailwinds to improve financials in the coming quarters.
Q3 2023 revenue was $199 million, a 5% increase year-over-year.
Cryogenics solutions and liquefier sales contributed $35.4 million to Q3 revenue.
Commissioned first high-power stationary units in the field in Q3 2023.
The Innovation Center and Gigafactory in Rochester, NY reached its initial nameplate capacity of 100 MW of electrolyzer stacks per month in May 2023.
Plug Power
Plug Power
Forward Guidance
Plug Power is focused on building a global green hydrogen ecosystem and delivering on its growth objectives, margin expansion, and path to profitability.
Positive Outlook
- Expect Georgia and Tennessee facilities to produce at full capacity by year-end.
- Lessons from ramping up Georgia green hydrogen facility coupled with manufacturing ramp, diversity of products, and major new customer wins reinforce Plug’s leadership position.
- Actively evaluating several sites for potential new or expanded production capabilities, with a focus on achieving up to 45 TPD of liquid hydrogen output.
- Plug is the preferred supplier of 550 MW electrolyzers for Fortescue’s proposed Gibson Island Project.
- The plant is expected to produce approximately 385,000 metric tons of green ammonia a year.
Challenges Ahead
- 2023 overall financial performance has been negatively impacted by unprecedented supply challenges in the hydrogen network in North America.
- The unprecedented number of hydrogen facilities in the market running below nameplate capacity has caused significant hydrogen shortages impacting deployment schedules, fuel prices, system efficiencies, service on hydrogen infrastructures, and timing of varied reliability program rollouts.
- Service costs have been affected as hydrogen disruptions have delayed the roll out of upgrades at both new and existing customer sites.
- These factors have been compounded by certain cost increases from inflation impacts on labor, materials and overhead.
- In the interim, given the impact on service and near-term cost projections, we have recorded additional service loss accrual for open contracts.