Loop Energy™ (TSX: LPEN), a designer and manufacturer of hydrogen fuel cells for commercial mobility, today reported consolidated financial results for the third quarter ending September 30, 2022.
The results show that the company secured record quarterly revenues of $2.6 million for the nine months, and $1.4 million for the three months, ended September 30, 2022.
Loop Energy also saw record purchase orders (POs) of 61 (versus 13 POs over the same period last year), received nine months ended September 30, 2022, exceeding Loop Energy’s original PO guidance set for 2022.
The news comes after Loop Energy announced its 120-kW fuel cell system, the S1200, which builds on Loop Energy’s existing technology, to provide an additional efficiency gain of 20% when it generates electricity.
The S1200 is designed to deliver up to 60% in net system efficiency (1). This efficiency enables an electric vehicle powered by a Loop Energy fuel cell to deliver up to 54% (2) fuel to wheel efficiency compared to the typical fuel to wheel efficiency delivered by a diesel engine powered vehicle of 20% to 25%(3).
Loop Energy believes the S1200 and its next-generation technology will significantly benefit commercial vehicle manufacturers, fleet operators and associated industries, as well as the global clean energy transition as governments seek to reach net zero emissions by 2050.
The S1200 opens up a new market for Loop Energy as the product is specifically designed for medium- to heavy-duty commercial vehicles, which is a step up in power range and scope compared to its other fuel cell products.
The news also comes at time when hydrogen fuel mobility takes off, with three Loop Energy customers, NGVI, Rampini and Aluminium Revolutionary Chassis Company (ARCC), each launching hydrogen-electric bus platforms within a three-month period.
Loop Energy has also recently opened a service facility in the United Kingdom to support customers in the region.
Loop Energy Chief Financial Officer, Damian Towns said “We have continued to build on our history of executing with record quarterly and annual revenues driven by our strong growth in purchase orders and customer base.
“A highlight of the excellent progress made in achieving our stated objective for 2022 is reducing unit costs by 25%, which currently stands at 39% for the first nine months of the year. Our team has also continued to deliver with the launch of our 120-kW product, which uses our next-generation bipolar plate technology.
“Overall, we remain very upbeat about the progress made, not only during Q3 but also the year to date.”
Q3 2022 Highlights
Commercial
– 61 POs received nine months ended September 30, 2022, versus 13 POs nine months ended September 30, 2021, with 9 POs received in Q3 2022 versus 1 PO in Q3 2021
– On track to achieve 25% cost out strategy with 39% unit cost reduction achieved for the first nine months of 2022
– Launched the S1200 fuel cell system, which utilizes next-generation bipolar plate technology, on schedule
– Three customers, NGVI, Rampini and Aluminium Revolutionary Chassis Company (ARCC), each launched hydrogen-electric bus platforms within a three-month period
– Entered into the Pilot Phase of the Customer Adoption Cycle with Opex /Hevolucion and Avia Ingeniería, both committing to develop a medium-duty hydrogen-electric truck
– Opened a service facility in the United Kingdom to support customers in the region
Financial
– Q322 revenues of $1.4 million (Q321: $0.2m), 2022 YTD revenues of $2.6 million (2021: $1.3m)
– Q322 operating expenses of $7.5 million (Q321: $5.2m), 2022 YTD operating expenses of $21.3 million (2021: $14.1m)
– Q322 capital expenditures of $2.5 million (Q321: $0.2m), 2022 YTD capital expenditures of $7.4 million (2021: $1.2m)
– Q322 net losses of $9.9 million (Q321: $6.5m), 2022 YTD net losses of $27.8 million (2021: $17.6m)
Cash and cash equivalents of $36.9 million as of September 30, 2022 (June 2022: $43 million)
Increased inventory to $7.5 million (gross value) in order to support supply chain
Working capital of $43.9m as of September 30, 2022
2022 Outlook
Positive progress towards its revised target of 100 POs for 2022, targeting a five-fold increase from 2021
– 60% space increase at Burnaby manufacturing facility and significant additions to engineering and manufacturing teams
– Loop Energy’s financial results and MD&A are available at loopenergy.com/investors/
