27th Jan 2020 11:18
(Alliance News) - ITM Power PLC on Monday reported a widened interim loss, despite rising revenue, but believes its new joint venture with Linde PLC will be " transformative" for the company.
In the six months to October 31, the hydrogen energy equipment manufacturer recorded a pretax loss of GBP9.8 million, widened from GBP5.3 million in the same period the year before.
"This figure continues to be affected by certain legacy projects, including that of the Shell Refhyne project, resulting primarily from facing first-of-a-kind deployment challenges," ITM explained.
To combat this, the company has created a joint venture with the engineering unit of Irish chemicals giant Linde. ITM said the venture will diminish its exposure to future deployment risk and allow it to focus on its own developments.
ITM Linde Electrolysis GmbH will focus on providing global green gas solutions using ITM Power's modular PEM electrolysis technology and Linde's EPC expertise to deliver turnkey solutions to customers, ITM said.
Revenue doubled year-on-year to GBP2.4 million from GBP1.2 million.
Chief Executive Graham Cooley said: "The formation of the joint venture with Linde and the strategic investment that accompanied it is transformative for ITM Power. The deal allows ITM Power to concentrate on its core competence of developing and manufacturing electrolysis equipment.
"The company is now able to offer a full turnkey solution at industrial scale with the EPC competence of a world leader in the hydrogen industry. The opportunity to bid up to 1 gigwatts per annum of electrolysis equipment from Bessemer Park gives the company a powerful cost reduction trajectory. I am confident that ITM Power and our partner Linde have a world class offering."
Shares in ITM Power were 6.9% lower in London on Monday at 101.50 pence each.
By Paul McGowan; [email protected]
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