2nd Mar 2009 07:00
2 March 2009
CERAMIC FUEL CELLS LIMITED
INTERIM RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2008
Ceramic Fuel Cells Limited (AIM, ASX: CFU), a global leader in fuel cell development, announces interim financial results for the six months ended 31 December 2008.
The Directors' Report and Financial Report for the half year are available at www.cfcl.com.au.
Key points are summarized below:
Financial Results:
Revenue: A$2.4m / £1.06m
FY08 Interims A$1.8m / £0.8m
Field trial income up from A$0.3m in FY08 to A$0.9m in FY09
Net operating cash outflow: A$7.3m / £3.3m
FY08 Interims A$9.1m / £4.1m
Net loss: A$32.6m / £14.6m
FY08 Interims A$9.7m / £4.4m
Due to impairment charge of A$27.5m / £12.3m for financial assets
Investments severely impacted by global financial crisis
Investments marked down to current selling price, A$6.9m / £3.1m
Operational Highlights:
Product Development Projects
UK
Utility E.On UK + appliance partner Gledhill
One semi-integrated unit installed and operating
Fully-integrated unit stage agreed, Gennex module to be shipped Q2 2009
Germany
Utility EWE + appliance partner Bruns
Three semi-integrated units installed and operating
Discussing fully-integrated stage, Gennex module to be shipped Q2 2009
France
Utility GdF/Suez + appliance partner De Dietrich Thermique
One semi-integrated unit installed and operating
Discussing fully-integrated stage, once agreed Gennex module to be shipped Q3 2009
Holland
Utility Nuon + appliance partner De Dietrich Thermique/Remeha
One semi-integrated unit installed and operating, at De Dietrich Thermique
Project review underway
On 24 February 2009, Vatenfall announced takeover of Nuon
Japan
Appliance partner Paloma Group (owner of Rheem and Solahart)
One NetGenPlus unit installed and operating
Discussing next stages of Product Development
Manufacturing
Large scale fuel cell assembly plant in Heinsberg, Germany
At 31 December 2008, €3.5m spent; total cost expected to be under €12.4m budget
Building works done - new mezzanine, new floor
Gas Storage facility
Factory Acceptance Tests for the 3 major items (Ink production, Robotic Dispensing, Furnaces)
Contracts awarded for HVAC, Gas control, Electrical installation
Completion October 2009
Initial design capacity 10,000 units per year - may phase capacity to defer spending
Funding
NRW Government grant up to €1.3m (depending on final capex and jobs)
Potential project financing, equipment leasing
Electrical Efficiency
September 2008, achieved 50% electrical efficiency. By December 2008, increased to 55%. February 2009, achieved 60% electrical efficiency whilst exporting 1.5kW, now up to 2kW
Results achieved in an integrated mCHP appliance - not a laboratory unit - connected to mains natural gas, exporting power to the electricity grid in Melbourne
No transmission or distribution losses means highest end user electrical efficiency of any technology using hydrocarbon fuels. Higher electrical efficiency means lower emissions and lower running costs.
Compelling competitive advantage: Much higher than other mCHP technologies, including all other fuel cells.
Very high electrical efficiency opens up new applications and markets.
Since the period end:
CFCL / E.On partnership
2008 - UK mCHP trial
CFCL fuel cell unit plus a boiler = semi integrated mCHP unit
Operated in Blackpool, UK, from June 2008 - still operational
Met all of E.ON's performance and lifetime requirements
2009 - Product Development Contract, announced February 2009
CFCL fuel cell module inside a boiler = fully integrated mCHP product
Commercial functionality, then size, then cost
E.On UK provides funding for product development, specifies UK market requirements, deploys units in stages subject to performance criteria
Commercial fuel cell mCHP Products
Subject to agreed price and performance targets - E.On UK minimum order of 100,000 units from 2012-2018 to retain UK exclusivity
Fundraising
Placing and Subscription for A$20.1m (£9.0m) before costs, announced on 2 March 2009.
Placing - A$10.2m (£4.6m) with institutional investors underwritten by Nomura Code Securities
Subscription - A$9.9m (£4.4m) with Australian and European cornerstone investors
Issue price of A$0.05 / 2.2 pence. Discount of 12% to the 30 day VWAP up to pricing discussions with cornerstone investor
Placing and Subscription is subject to shareholder approval - notice of meeting to be sent shortly
Planned further offers to shareholders at the same issue price
Australian Rights Issue - up to A$10m
UK Offer - up to approximately £2.3m
Full details in prospectus or offer circular to be sent to shareholders
2009 Outlook
European Product Development
Fully integrated mCHP units deployed
Further Orders
New Revenue Opportunities
Products
Partners
Markets
Sales from the UK Powder plant
Automated production from Heinsberg late 2009
Technology meeting or exceeding commercial targets
The interim results and Company presentations are available at www.cfcl.com.au.
For further information please contact:
Ceramic Fuel Cells Nomura Code Securities (AIM Nomad)
Andrew Neilson Juliet Thompson or Chris Golden
Tel: +61 419 950 771 Tel: +44 (0) 207 776 1200
Email: [email protected]
Australia Media enquiries: UK / EU Media enquiries:
Richard Allen Ian Payne / Vicky Watkins
Oxygen Financial Public Relations Hogarth Partnership Limited
Ph: 03 9915 6341 or 0403 493 049 Ph: +44 (0) 20 7357 9477
About Ceramic Fuel Cells Limited:
Ceramic Fuel Cells Limited is a world leader in developing solid oxide fuel cell technology to provide highly efficient and low-emission electricity from widely available natural gas and renewable fuels. The company is developing micro combined heat and power and distributed generation units that generate electricity and heat for homes. Ceramic Fuel Cells is developing products with leading appliance partners and utility customers in Germany, France, the United Kingdom, Holland and Japan. The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU). www.cfcl.com.au
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