Hexagon Purus ASA: Results for the second quarter 2023
Selected key developments in Q2 2023 and after balance sheet date:
- Revenue growth trend continues with 57% year-over-year growth to NOK 330 million in Q2 2023, and 55% year-over-year growth in the first half of 2023.
- Signed a long-term agreement with a major North American OEM to provide complete vehicle integration of battery electric utility trucks in North America, with an estimated potential sales value of approximately USD 150 million.
- Entered into a 5-year framework agreement with a global energy company for delivery of hydrogen distribution systems with a potential sales value of approximately EUR 27 million.
- Commenced serial production of hydrogen cylinders for the Nikola TRE fuel cell electric heavy-duty truck.
- Exited the quarter with total backlog of approximately NOK 1.4 billion.
“It has been yet another strong quarter with continued revenue growth and commercial traction as evident by the strong order book and recent announcements of major long-term agreements across both hydrogen distribution and battery electric mobility”, says Morten Holum, CEO of Hexagon Purus. “We are still executing according to the strategic plan set in 2020 and we are tracking well towards our short- and medium-term targets”.
In the second quarter of 2023, Hexagon Purus (“the Company” or “the Group”) generated NOK 330 million in revenue, up 57% from NOK 210 million in the second quarter of 2022. The year-over-year growth is mainly driven by increased sales of hydrogen distribution modules for industrial and infrastructure purposes as well as transit bus applications and aerospace. Total operating expenses in the second quarter of 2023 ended at NOK 419 (322) million, leading to an operating profit before depreciation (EBITDA) of NOK -89 (-112) million.
Total assets at the end of the second quarter of 2023 amounted to NOK 3 818 (2 527) 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 cash and cash equivalents following the Company’s NOK 1.3bn (gross) capital raise in March 2023. Increases in equity and non-current liabilities in the second quarter of 2023 compared to the second quarter of 2022 is mainly driven by the NOK 500 million (gross) equity and NOK 800 million (gross) convertible bond private placements in March 2023. At quarter-end, the Company had a satisfactory equity ratio of 62% (72%).
Net cash flow from operating activities in the second quarter of 2023 was NOK -172 (-136) million, of which NOK 71 (72) million was build-up of net working capital. Net cash flow from investing activities was NOK -264 (-64) million in the second quarter of 2023, of which NOK 141 million relates to investments in equipment and buildings for the ongoing capacity expansion program. Settlement of the deferred consideration and parts of the contingent consideration related to the Wystrach acquisition was also made in the second quarter of 2023, amounting to NOK 86 million. Net cash flow from financing in the second quarter of 2023 was NOK 56 (-1) million. Net change in cash and cash equivalents in the second quarter of 2023 was NOK -380 (-201) million, and currency exchange differences on cash was NOK -13 (13) million. Cash and cash equivalents ended at NOK 973 (702) million, and liquidity was deemed satisfactory at the end of the second quarter of 2023.
Outlook
Hexagon Purus’ customer interactions are positively influenced by the strong legislative tailwinds, and customer demand for the Company’s products and services is expected to further accelerate going forward. Hexagon Purus has been successful in securing several long-term agreements recently, which gives the Company confidence in its medium to long-term targets.
Hexagon Purus’ order backlog, consisting of firm customer purchase orders, stood at approximately NOK 1.4 billion as of the second quarter of 2023, providing satisfactory revenue visibility for the Company’s full-year 2023 revenue target and increasing visibility for 2024 revenue. For 2023, the Company expects revenue growth of at least 50% year-over-year.
With several growth initiatives underway, including building production capacity and organizational capabilities to support customer launch activities and expected market demand in the coming years in North America, Europe and Asia, Hexagon Purus is in the investment phase of its development. Such investments are expected to impact profitability over the near-to-medium term. The relative EBITDA margin is expected to significantly improve year-over-year, but EBITDA will continue to be impacted by ramp-up of the organization and production facilities. Negative EBITDA for full-year 2023 is expected to widen by approximately 10% compared to full-year 2022 EBITDA.
Presentation of the results
Hexagon Purus will present the Q2 2023 results at 08:30 CET and the presentation will be broadcasted live via https://hexagonpurus.kg5.no/.
The presentation will be held in English and will be virtual. Recording of the presentation will be made available on www.hexagonpurus.com.
For more information:
Mathias Meidell, IR Director, Hexagon Purus ASA
Telephone: +47 909 82 242 | mathias.meidell@hexagonpurus.com
Salman Alam, CFO, Hexagon Purus ASA
Telephone: +47 476 12 713 | salman.alam@hexagonpurus.com
About Hexagon Purus ASA
Hexagon Purus enables zero emission mobility for a cleaner energy future. The company is a world leading provider of hydrogen Type 4 high-pressure cylinders and systems, battery systems and vehicle integration solutions for fuel cell electric and battery electric vehicles. Hexagon Purus’ products are used in a variety of applications including light, medium and heavy-duty vehicles, buses, ground storage, distribution, refueling, maritime, rail and aerospace.
Learn more at www.hexagonpurus.com and follow @HexagonPurus on Twitter and LinkedIn.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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