REG - ITM Power PLC - Trading Update

ITM PowerAnnouncement

16/12/2021 07:00

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RNS Number : 8137V  ITM Power PLC  16 December 2021

16 December 2021

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

ITM Power PLC

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

 

Trading Update

 

ITM Power (AIM: ITM), the energy storage and clean fuel company, provides an
update on the Group's work-in-progress, the contracts backlog and the tender
pipeline as well as unaudited financial results for the half-year to 31
October 2021.

 

Highlights:

·   Record backlog of 499 MW as at 1 Dec, up by 61% since September 2021

o Contracted: 62 MW compared to 43 MW in September

o In negotiation: 339 MW compared to 169 MW in September

o Preferred supplier: 98 MW unchanged versus September

·   Tender pipeline of 909 MW compared to 1,011 MW in September 2021,
reflecting tenders moving to negotiation stage

 

                           Dec-21                        Sep-21                        Change
 £m denotes value to ITM   MW             £m             MW             £m             MW             £m
 Work in Progress*         62             34             43             36             45%            -6%
 Contracts backlog**       499            198            310            171            61%            16%
 Tender pipeline***        909            359            1,011          378            -10%           -5%
 Backlog + Pipeline        1,408          557            1,321          549            7%             1%
 *Work in Progress         Contracted backlog
 **Contracts backlog       Contracted backlog and contracts in the final stages of negotiation and
                           preferred supplier backlog
 ***Tender pipeline        Quotations submitted in response to commercial tenders in the last 12 months

 

New Contract awards:

·    Refhyne II consortium of which ITM is a member was awarded a grant of
€32.4m by CINEA (the European Climate, Infrastructure and Environment
Executive Agency) for the development of a 100 MW electrolyser to be sited at
Shell's Energy and Chemicals Park, Rhineland.  The project will see an
engineering design phase which will be followed by a final investment decision
(FID) expected in late 2022 with delivery then scheduled for 2024

·    Contract signed for delivery of 12MW of electrolysis equipment to be
deployed in 2022, and recognised in the 2022/23 financial year

·    In November, UK Government Investment was secured for Phase 1 of
ScottishPower's 20 MW Whitelee Windfarm hydrogen production and storage
facility

·    New Projects under negotiation of approximately 200 MW

 

Corporate:

·   Successful £250m fund raise completed post period end in November

·   Site for the second 1.5 GW UK factory acquired in Sheffield

·   First overseas factory of 2.5 GW to follow, to create 5 GW of capacity
by the end of 2024

·   Continued strengthening of Management Team with the following senior
appointments:

o Martin Clay, Operations Director, formerly MD of Kostal UK Ltd

o Nadia Sparrow, Head of Procurement, formerly Head of UK Procurement at
Alstom

o Helen Baker, Company Secretary, formerly Head of Secretariat at Coca-Cola
Europacific Partners plc

o Chris Yewdall, Projects Director, formerly Head of PMO (Project Management
Office) at Rolls Royce plc

 

Unaudited Financials for the six months to 31 October:

·   Revenue of £4.1m (2020: £0.2m)

·   Gross loss of £2.4m (2020: loss of £2.8m)

·   Adjusted EBITDA loss of £13.0m (2020: loss of £10.4m)

·   Net cash at half-year-end of £166.6m excludes net £242m raised in
November

·   Cash burn of £12.0m (£14.0m)

 

Outlook:

·   Full year guidance of 33-50 MW maintained, with revenue still expected
to be heavily weighted to H2 as previously indicated

·   Continued growth in tender pipeline and backlog expected

·   Planning for manufacturing capacity expansion accelerating including
work on identification of the location for our first overseas factory

 

Dr Graham Cooley, CEO of ITM Power, said: "Today's update provides a
compelling endorsement of how fast our markets are growing and our decision to
raise further funds to increase capacity domestically and internationally to
take full advantage of this growth.  Together with our partners, we believe
we can gain a material market share as a result of our experience, expertise
and capacity to help industry to decarbonise using green hydrogen."

 

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. In October 2019, the Company
announced the completion of a £58.8m fundraising, including an investment by
Linde of £38m, together with the formation of a joint venture to deliver
renewable hydrogen to large-scale industrial projects worldwide. In November
2020, ITM Power completed a £172m fundraising, including a £30m investment
by Snam, one of the world's leading energy infrastructure operators. In
January 2021, the Company received an order for the world's then largest PEM
electrolyser of 24MW from Linde. In October 2021, the Company, with Linde,
announced the deployment of a 100MW electrolyser at Shell's Rhineland
refinery, following the start-up of an initial 10MW facility at the site. In
November 2021, ITM Power raised £250m to accelerate expansion.

 

ITM Power operates from the world's largest electrolyser factory in Sheffield
with a capacity of 1GW (1,000MW) per annum, with the announced intention to
build a second UK Gigafactory in Sheffield with a capacity of 1.5GW expected
to be fully operational by the end of 2023. The Group's first international
facility, expected to have a capacity of 2.5GW per annum, is intended to be
operational by the end of 2024, bringing total Group capacity to 5GW per
annum. Customers and partners include Sumitomo, Ørsted, Phillips 66, Scottish
Power, Siemens Gamesa, Cadent, Northern Gas Networks, Gasunie, RWE, Engie,
GNVert, National Express, Toyota, Hyundai and Anglo American among others.

 

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