FuelCell Energy, Inc. Announces Combined Heat and Power Fuel Cell Solution for University of California, Irvine Medical Center
Jun 20 14
FuelCell Energy Inc. announced the development of a project to install a 1.4 megawatt (MW) fuel cell power plant to provide both electricity and usable high quality heat to the University of California, Irvine Medical Center. The power plant will generate about 30% of the facility power needs, while the heat produced will be used in a direct exhaust absorption chiller to produce 200 tons of cooling for an office building and associated institutional requirements. The medical center will enjoy the benefits of clean, quiet and affordable on-site power while avoiding a capital investment by purchasing the power and heat under a multi-year power purchase agreement. FuelCell Energy will install, operate and maintain the plant. The power plant will be configured for combined cooling, heating and power (CCHP) so that the same unit of fuel generates both ultra-clean power and usable high quality heat that will be used both for heating water and converting a portion of the heat into cooling for air conditioning. By reducing usage of electricity based chillers for space cooling, the medical center will benefit financially through avoided electricity costs and support the environment by avoiding the pollutants and greenhouse gases emitted by centralized conventional power plants. The heat will be turned into cooling via a direct exhaust absorption chiller. FuelCell Energy is developing this project and expects to close on permanent financing on or before the commercial operation date of the power plant. The medical center has entered into a multi-year power purchase agreement to buy the electricity produced by the fuel cell power plant, while the cooling benefits are provided as an additional benefit to the medical center. Since the fuel cell power plant generates power without combustion, its exhaust is virtually pollution-free.
Fuelcell Energy Inc. Announces Unaudited Consolidated Earnings and Operating Results for the Second Quarter and Earnings Results for the Six Months Ended April 30, 2014; Provides Earnings Guidance for the Second Half of 2014
Jun 3 14
FuelCell Energy Inc. announced unaudited consolidated earnings and operating results for the second quarter and earnings results for the six months ended April 30, 2014. For the quarter, the company reported total revenues of $38,274,000 compared with $42,436,000 for the same period a year ago. Loss from operations was $8,773,000 compared with $7,197,000 for the same period a year ago. Loss before provision for income taxes was $15,971,000 compared with $7,594,000 for the same period a year ago. Net loss attributable to company was $15,843,000 compared with $7,365,000 for the same period a year ago. Net loss attributable to common shareholders was $16,643,000 or $0.07 per basic and diluted share compared with $8,165,000 or $0.04 per basic and diluted share for the same period a year ago. Non GAAP loss before provision for income taxes was $10,075,000 compared with $7,594,000 for the same period a year ago. Non GAAP net loss attributable to common shareholders was $10,747,000 or $0.04 per basic and diluted share compared with $8,165,000 or $0.04 per basic and diluted share for the same period a year ago. Product sales for the second quarter of 2014 totaled $27.7 million, comprising $26.1 million of power plant revenue, fuel cell module and fuel cell kit sales, including 5.6 megawatts of fuel cell module sales to POSCO Energy that is in addition to the existing multi-year 122 megawatt fuel cell kit order, and $1.6 million of power plant component sales and site engineering and construction services.
For the six months, the company reported total revenues of $82,708,000 compared with $78,794,000 for the same period a year ago. Loss from operations was $16,343,000 compared with $18,267,000 for the same period a year ago. Loss before provision for income taxes was $26,676,000 compared with $19,466,000 for the same period a year ago. Net loss attributable to company was $26,447,000 compared with $19,046,000 for the same period a year ago. Net loss attributable to common shareholders was $28,047,000 or $0.13 per basic and diluted share compared with $20,646,000 or $0.11 per basic and diluted share for the same period a year ago. Non GAAP loss before provision for income taxes was $18,337,000 compared with $19,466,000 for the same period a year ago. Non GAAP net loss attributable to common shareholders was $19,708,000 or $0.09 per basic and diluted share compared with $20,646,000 or $0.11 per basic and diluted share for the same period a year ago.
The company maintained an annual production run-rate at the Torrington, Connecticut production facility of approximately 70 megawatts during the second quarter of 2014, producing 17.5 megawatts of cell components for fuel cell kits, modules, and fuel cell power plants. Fuel cell shipments totaled 15.7 megawatts during the second quarter of 2014 compared to 12.6 megawatts in the prior year period. The company has capacity in place to support an annual run-rate of 100 megawatts.
Based on production planning and the favorable progress of contract negotiations underway on a number of projects, increasing quarterly revenues are forecasted in the second half of fiscal 2014 and into 2015. With this level of expected activity, the company is targeting average quarterly revenues for the second half of 2014 in the $50 - $60 million range at the current production level. The company continues to target break-even cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) at the current 70MW run-rate based on expected order closure of complete power plants that will enhance the sales mix and expand margins. Increasing quarterly revenue is expected in the second half of 2014 supported by recent project announcements.
FuelCell Energy Inc. Announces Strengthening of Strategic Relationship with POSCO Energy Supporting Global Market Development and Product Cost Reductions
Jun 3 14
FuelCell Energy Inc. announced further steps to accommodate the increasing global demand for megawatt-class stationary fuel cell power plants, ensuring preeminent customer support around the world as well as enhanced execution of product cost reductions. FuelCell Energy and POSCO Energy are collaborating to support multi-national customers expressing interest in fuel cell projects in the other partner's territory, are further synchronizing the integrated global supply chain, and executing the sale of four fuel cell modules, totaling 5.6 megawatts to meet rising demand in Asia. Increasing interest in stationary fuel cell applications in different geographic regions from companies with global operations has led to the broadening of activities between FuelCell Energy and POSCO Energy. Enhanced collaboration accommodates North American, European or other non-Asian customers of FuelCell Energy that are interested in a fuel cell installation in Asia as well as Asian customers of POSCO Energy that desire a fuel cell installation outside of Asia. With growing global adoption of Direct FuelCell power plants, trends to larger-sized fuel cell parks, and cross-territorial interest from multi-national customers, FuelCell Energy and POSCO Energy can support global customers in each other's local market to ensure consistency of communication, quality and execution. The construction of the POSCO Energy cell manufacturing facility is on schedule with production expected in mid-2015. Once operational, this facility will double the global manufacturing capacity of FuelCell Energy's proprietary power plants. The integrated global supply chain agreement reaffirms the global supply chain alignment, which is critical for expected product cost reductions. Decreasing product costs supports further market adoption as well as margin expansion. The combined purchasing volume of both organizations results in both partners benefitting from purchases by each other through lower product costs. By leveraging the existing supply advantages of both companies, including POSCO's steel manufacturing capabilities and mining operations, FuelCell Energy will realize enhanced security of supply and increasing production volumes in any one region benefits both partners with lower product costs globally.