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Last checked at 
16 Dec 2021 07:00
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 or contact:
ITM Power plc |
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James Collins, Investor Relations Justin Scarborough, Investor Relations | +44 (0)114 551 1205 +44 (0)114 551 1080 |
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Investec Bank plc (Nominated Adviser and Broker) | +44 (0)20 7597 5970 |
Jeremy Ellis / Chris Sim / Ben Griffiths |
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Tavistock (Financial PR and IR) | +44 (0)20 7920 3150 |
Simon Hudson / David Cracknell / Tim Pearson |
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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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