REG - ITM Power PLC - Trading & Corporate Update

ITM PowerAnnouncement

09/06/2022 07:00

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RNS Number : 2379O  ITM Power PLC  09 June 2022

9 June 2022

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

ITM Power plc

("ITM", "ITM Power", the "Group" or the "Company")

 

Trading and Corporate Update

Development of ITM Power Service Hub in Germany

 

ITM Power (AIM: ITM), the energy storage and clean fuel company, provides an
update on the Group's progress since the publication of the Half Year Report
on 27 January 2022. The update covers work in progress and the contracts
backlog as well as unaudited financial results expected for the year ended 30
April 2022 (FY22).  The Company will announce final results for the year on 8
August 2022.

 

Backlog:

·   Record backlog of 755 MW as at 1 June 2022, up by 53% since January and
up by 160% yoy

o Contracted: 75 MW

o In negotiation: 342 MW

o Preferred supplier: 338 MW

 

                      Apr 22 MW                 Apr 21 MW                 % Change
 Work in progress*    75                        43                        74%
 Contracts backlog**  755                       290                       160%

 *Work in progress    Contracted backlog
 **Contracts backlog  Contracted backlog and contracts in the final stages of negotiation and
                      preferred supplier backlog

 

Commercial and product developments:

·    240 MW preferred supplier status of projects with Motive, our 50:50
JV with Vitol, to support the rollout of refuelling infrastructure

·    The sale of a 24 MW electrolyser to Linde Engineering, which is to be
installed at a site operated by Yara Norge AS ("Yara") located at Herøya
outside Porsgrunn. The electrolyser equipment, which will be used to produce
green ammonia, will have revenue recognised in FY23

·    Award of £9.3m for Gigatest from Department for Business, Energy and
Industrial Strategy (BEIS), under its Net Zero Innovation Portfolio Low Carbon
Hydrogen Supply 2 Competition, to accelerate the commercial development of ITM
Power's 5 MW Gigastack platform and its manufacture

·    4MW system sold to RWE at Lingen

·    Continuous product improvement - MEP 2.0 pressure increased by 50% to
30 bar, GEP 1.0 on track for production at end of 2023

 

New 50/50 JV with Vitol:

·    Strategic partnership agreement with Vitol Holdings SARL for wholly
owned subsidiary ITM Motive Limited, trading as Motive Fuels, to become a
50/50 joint-venture owned between ITM Power and Vitol, including a framework
agreement with ITM Power, under which Motive appoints ITM Power as its
preferred supplier for up to 240 MW of electrolysis equipment

 

Development of ITM Power Service:

·    Development of ITM Power Service, an aftermarket focussed customer
support business designed to provide full product-life-cycle support of
deployed electrolyser systems

·    Existing aftermarket operations including the Group's 24/7 UK Remote
Support Centre merged into one focussed organisation with new headquarters in
Germany

·    The organisation will be led by Philip Wilson as Technical Director
and Calum McConnell as Commercial Director, both long-term ITM Power staff
members

·    Lease signed on a 17,054 sqft three storey combined office, control
centre and warehouse facility in Linden, ideally located in Hessen, which is a
recognised transit state within Germany with excellent motorway links and
local infrastructure

·    The facility will house all spare parts, including core PEM stack
technology, to ensure high service levels and rapid deployment capability to
systems in Europe

·    Supported by €2.0m grant from the German government

 

Expected unaudited financial results for the twelve months to 30 April 2022:

·   Revenue of £5.5m (2021: £4.3m), impacted by:

o  Deferral of 24 MW Leuna delivery of completed products and therefore
revenue recognition of approximately £11m into FY23

·   Adjusted EBITDA loss of c.£36.5m (£21.4m), impacted by:

o  c.£7m Increased skills acquisition

o  c.£14m project delivery & production ramp up

·   Cash Burn of c.£52m (£37.7m), impacted by:

o  c.£7m Product Development of MEP 2.0 and GEP 1.0

o  c.£20m Ongoing WIP and inventory build

o  c.£5m Production equipment for Bessemer Park

·   Net cash at year-end of £364m (£176m)

 

Dr Graham Cooley, CEO of ITM Power, said: "Over the past year, ITM Power has
laid the foundations, financially and operationally, to scale our production
capacity which will play a critical role in decarbonising economies using
green hydrogen and enabling countries around the world to enhance their energy
and food security.

 

"Russia's invasion of Ukraine has accelerated the intent of many countries to
increase energy and food security, with a specific focus on green hydrogen, as
shown by the recent UK Government and REPowerEU announcements. We believe we
can gain a material share of these global markets as a result of our
experience, expertise, partnerships and capacity."

 

For further information please visit www.itm-power.com
(http://www.itm-power.com/)  or contact:

 

 ITM Power plc
 James Collins, Investor Relations                 +44 (0)114 551 1205

 Justin Scarborough, Investor Relations            +44 (0)114 551 1080

 Investec Bank plc (Nominated Adviser and Broker)  +44 (0)20 7597 5970
 Jeremy Ellis / Chris Sim / Ben Griffiths

 Tavistock (Financial PR and IR)                   +44 (0)20 7920 3150
 Simon Hudson / David Cracknell / Tim Pearson

 

About ITM Power plc:

ITM Power manufactures integrated hydrogen energy solutions for grid
balancing, energy storage and the production of renewable hydrogen for
transport, renewable heat and chemicals. ITM Power PLC was admitted to the AIM
market of the London Stock Exchange in 2004.

 

ITM Power operates from the world's largest electrolyser factory in Sheffield
with a capacity of 1 GW (1,000 MW) per annum and has a plan to grow capacity
in line with demand to 5 GW per annum, supported by a £250m equity raise in
Q4 2021. Partners include Linde, Shell, Snam, and Vitol among others.

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