Hexagon Purus ASA

Results for the fourth quarter 2023 - Seite 2

In the fourth quarter of 2023, Hexagon Purus (“the Company” or “the Group”) generated NOK 366 million in revenue. About NOK 40 million of revenue was pushed out from the fourth quarter of 2023 to the first quarter of 2024 due to technicalities related to revenue recognition. Hydrogen infrastructure solutions continues to be the main driver of growth, coupled with increasing activity within mobility applications, including heavy-duty vehicles and transit bus as well as aerospace. For the full-year 2023, revenue ended at NOK 1,320 million, up 37% compared to full-year 2022.

Total assets at the end of the fourth quarter of 2023 amounted to NOK 3,773 (2,655) million. The year-over-year increase in total assets is mainly driven by increases to property, plant and equipment and right-of-use assets as a result of the Company’s ongoing capacity expansion program, combined with an increase in working capital to cater for a higher activity level. Trade receivables increased to NOK 275 (229) million in the fourth quarter of 2023 and inventory stood at NOK 482 (332) million. The Company’s working capital position reflects growth throughout 2023, which is expected to continue into 2024.

Net cash flow from operating activities in the fourth quarter of 2023 was NOK -138 (16) million, of which NOK -7 (142) million was due to an increase in net working capital. Net cash flow from investing activities was NOK -111 (-118) million in the fourth quarter of 2023, of which NOK -105 million relates to investments in production equipment and facilities related to the ongoing capacity expansion program. Net cash flow from financing in the fourth quarter of 2023 was NOK -18 (10) million. The majority of the outflow from financing is related to lease payments, which in the fourth quarter of 2023 amounted to NOK -17 (-9) million.

Cash and cash equivalents ended at NOK 307 (382) million.

Outlook

The clean hydrogen industry is facing headwinds in terms of higher construction and operating costs and higher cost of capital on the back of rising interest rates. This has resulted in a higher levelized cost of renewable hydrogen, which has slowed down the development of the global clean hydrogen industry compared to previous expectations. However, 1,400 hydrogen projects have been announced world-wide¹, up more than 35% compared to the number of projects announced in May 2023. The majority of these projects have been added in Europe, and USD 570 billion in direct investments has been announced in total through 2030 of which approximately 7% have passed the final investment decision (FID) stage. Of the 1,400 projects, more than 70% are expected to be in full or partial deployment by 2030.