(Alliance News) - ITM Power on Thursday posted a swing to loss for the first half of its current financial year but expressed confidence in its outlook on the growing need for green hydrogen globally.
Shares in the hydrogen energy solutions company were trading 4.8% lower at 613.85 pence each on Thursday morning in London.
For the six months ended October 31, ITM Power posted pretax loss of GBP12.0 million, widening significantly from a loss of GBP9.8 million a year prior. This was as revenue plunged 93% year-on-year to GBP178,000 from GBP2.4 million.
The Sheffield-based company blamed the reduction in revenue on Covid-19 related restrictions, noting it only receives income upon completion of on-site work.
"With the safety of staff and customers the highest priority, less progress has been made on site that would have otherwise have been the case. The delays in product delivery are expected to be reversed as the projects are completed, and will be recognised as work is completed as we progress through the contracted backlog," it said.
It noted that without restrictions, revenue would have been USD3.1 million higher.
ITM added that as at Thursday, total backlog stands at GBP124.0 million, with GBP36.1 million of projects under contract and a further GBP16.2 million in the final stages of negotiation.
Looking ahead, Chief Executive Graham Cooley said: "Global energy markets are increasingly recognising the need for the use of green hydrogen within their industrial and pandemic recovery strategies. This year we have seen a large number of governments, industrial conglomerates and big corporations announce new plans or strategies to make hydrogen into a feasible option for the energy landscape in the decades to come.
ITM Power, with its joint venture ITM Linde Electrolysis GmbH is uniquely positioned to deliver on this opportunity, with the ability to scale up production at Bessemer Park and EPC delivery through Linde. We have the building blocks in place to make the most of the opportunities presented by global decarbonisation," he added.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Itm Power (ITM)