The following is a summary of the Ceres Power Holdings Plc. (CPWHF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Ceres Power Holdings reported a revenue of GBP 22.3 million, risen due to progress with commercial partners moving towards stack supply and scale manufacture.
Gross profit margin improved to 61% due to the revenue increase and the reduction in warranty provision.
The company ended the year with a GBP 140 million cash position and a decreased cash burn of GBP 42.4 million compared to last year's GBP 67.3 million.
Adjusted EBITDA loss was GBP 50.3 million due to an increased planned investment in Solid Oxide Electrolysis Cell (SOEC).
With an existing order backlog and contract signings, the 2024 revenue expected to approximately double that of 2023.
An increase in earnings from GBP 2.8 million in 2022 to GBP 7 million in 2023 was also reported.
Business Progress:
Significant progress was made with Bosch on power units development, with €160 million of EU funding, and Doosan in South Korea for a 50-megawatt factory construction.
A strategic relationship with Bosch and Linde has been developed for early evaluation and more collaborative development.
A GBP 43 million license deal was signed with Delta Electronics to accelerate the scaling of the SOEC technology.
Plans to accelerate its commercial offering for the SOEC platform in 2024.
The company plans to maintain stable operating costs and focus on cost and priority program management, with plans to accelerate R&D, particularly in fuel cells and SOEC technology.
Continues with its green hydrogen demonstrator programs and is developing larger scale modules for hydrogen plant applications.
A promising market future in Green Steel, Green Ammonia, and Future Fuels sectors is expected.
A perceived growth strategy in Asia, specifically in China and India, where subsidies for green hydrogen increase interest in solid oxide cells.
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