Prager Energy's Q1 revenue was US$120 million, down 42.8% year on year; net loss was US$296 million, compared with net loss of US$207 million for the same period last year.
The Zhitong Finance App learned that on May 9, Plug.US (PLUG.US) announced financial results for the first quarter of 2024. According to financial reports, Prager Energy's Q1 revenue was US$120 million, down 42.8% year on year; net loss was US$296 million, net loss for the same period last year was US$207 million; after dilution, the loss per share was 0.46 US dollars, which was higher than market expectations of US$0.33, and loss per share was 0.35 US dollars for the same period last year.
The company said the sharp drop in revenue reflects “the seasonality of our equipment sales and the timing of electrolyzer deployment.”
Prager Energy said that net cash used in operating activities and capital expenses fell 38% month-on-month and fell 42% year over year. “The situation is expected to gradually improve as internal hydrogen supply and price increases have an impact on the next few quarters,” while inventory reduction remains a top priority in 2024.
The company's equipment profit margins have been affected on the grounds that its focus is on reducing inventory and limiting production, as well as the negative absorption of management expenses due to lower sales volume. “However, given the announced restructuring and the increase in sales for the rest of the year, the company is preparing to increase indirect cost leverage to increase equipment profits.”
The company notes that it is still awaiting conditional approval from the US Department of Energy's pending loan guarantee, which will help finance the construction of its plant.