Plug Power (PLUG.US), a manufacturer of hydrogen fuel cells, released a quarterly report that revealed serious financial problems for the company. As a result, shares lost more than 35% after the market open. The company said in a release that it is currently facing significant liquidity problems, which may have a direct impact on its inability to continue operations in the long term. Plug Power supplies its fuel cells to some of the world's largest companies, including industrial vehicles used by Amazon (AMZN) and Walmart (WMT).
The company said in a published report that its total net loss for the three quarters is already more than $726 million, while its net loss in the third quarter alone was $283.5 million. The company has been struggling with the profitability of its business for quite some time. However, the most disturbing fact is that the loss is growing year after year. Last year, the total loss to the corresponding period was $500.5 million.
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Open account Try demo Download mobile app Download mobile appThe company's management reports that the reason for the weak results is the severe situation prevailing in the hydrogen supply market throughout North America. The market is currently facing severe constraints caused by various unexpected events. Which, as a result, has led to problems in liquid hydrogen supply, delays in deployments, and declining service margins. The company is currently seeking various solutions for financing its operations and investments. Both equity issues, grants and government support and debt are involved. Unfortunately, despite continuing losses, management does not yet have a clear exit strategy from the current difficult situation.
Plug Power (PLUG.US) shares dip more than 35% at the opening of the market on Wall Street. The listing has already lost more than 70% since the beginning of the year, and the share price has fallen below $4 for the first time. Source: xStation 5
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