Fuel cell solutions provider Ballard Power Systems announced the results for the fourth quarter (Q4), and the year ended December 31, 2021. Ballard zero-emission PEM fuel cells enable electrification of mobility, including buses, commercial trucks, trains, marine vessels, passenger cars, and forklift trucks.
The company reported total revenue of $36.7 million in Q4 2021, up by 28% year-over-year (YoY) during the same period in 2020. The increase was mainly driven by the growth in power product sales, offsetting the demand in technology solutions revenue.
The company, however, reported a net loss of $43.8 million, an increase of 204% from $14.4 million in Q4 2021.
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $25.5 million, an increase of 76%, compared to $14.5 million in Q4 2020, driven mainly by a decrease in gross margin and increase in cash operating costs.
The company said that power products generated revenue of $26.6 million in the quarter, marking an increase of 77% driven by higher shipments of fuel cell products.
For Q4 2021, the company registered revenue from heavy-duty modules (fuel cells) of $22.5 million, increasing by 89%, primarily due to higher sales to customers in China, Europe, and North America.
The backup power revenue increased by 30% and stood at $2.7 million, driven by increased sales of backup power fuel cell stacks, products, and service revenues in Europe.
Ballard reported revenue of $10.1 million in Q4 2021 from technology solutions, decreasing by 26% due to the decrease in the completion of certain customer programs.
The company received approximately $21.2 million of new orders in Q4 2021 and delivered orders valued at $36.7 million, resulting in an order backlog of approximately $93 million at the end of Q4 2021.
“2021 was an important year for Ballard as we made significant progress against our strategic plan and continued to position Ballard as a leading fuel cell player in the decarbonization of medium- and heavy-duty mobility. In 2021, we deepened our customer base in our target markets and made marked progress with existing and new partnerships. This progress is critical as we begin to transition various customer programs and pilots into long-term supply agreements, order book growth, and series production,” said Randy MacEwen, President and CEO.
Full year 2021 financial highlights
The company posted revenue of $104.5 million in CY 2021, a slight increase of 1 %, driven mainly by an increase in power product sales, offsetting the decline in technology solutions revenue.
The company reported a net loss of $114.4 million, an increase of 131% from $49.5 million in 2020.
The adjusted EBITDA stood at $82.2 million in 2021, a decrease of 111.3% compared to $38.9 million in 2020, primarily due to the decrease in gross margin, increase in cash operating costs, and higher equity loss of investments in the joint ventures and associates.
The power products generated revenue of $68 million during the year, marking an increase of 16%, driven mainly by higher shipments of fuel cell products.
The company reported revenue from heavy-duty modules (fuel cells) of $51.7 million, increasing by 8%, due to higher shipments of fuel cell products to customers primarily in North America and Europe, offsetting the decline in China.
Technology solutions generated revenue of $36.5 million in the year, a decrease of 19% due to decreased amounts earned as a result of the completion of certain customer programs.
The company reported reserves of $1.1 billion on December 31, an increase of 47% from the end of Q4 2020 and a decrease of 8% from the end of Q3 2021.
Recently, Ballard announced it had signed a non-binding memorandum of understanding with the Adani Group to evaluate a joint investment case for the commercialization of fuel cells in various applications in India, such as trucks, mining equipment, marine vessels, off-road vehicles, and critical industrial power. Under the MOU, both parties will examine various options to cooperate, including potential collaboration for fuel cell manufacturing in India.
Earlier, Ballard Power Systems and Forsee Power had announced the signing of a memorandum of understanding for a strategic partnership to develop fully integrated fuel cell and battery solutions. The partnership aimed to create a fully integrated solution combining a fuel cell and battery system optimized to meet the needs of targeted medium and heavy-duty mobility markets of bus, truck, rail, marine, and off-road.
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