Green Hydrogen Systems Adjusts 2024 Guidance and Future Plans

Green Hydrogen Systems Adjusts Guidance for 2024

Inside Information

Green Hydrogen Systems A/S has recently announced its adjusted and clarified financial guidance for the upcoming year, reflecting crucial changes in its operational strategy and financial outlook.

2024 Financial Adjustments

As part of the conclusion of Q4 financial results, Green Hydrogen Systems is revising its EBITDA guidance for 2024. The revisions signal a strategic reassessment, specifically adjusting both revenue projections and capital expenditure. This adjustment comes after comprehensive evaluations by the new management team, helmed by René Umlauft, who assumed the role of CEO in late 2024.

Revised EBITDA Guidance

The company has updated its EBITDA guidance to reflect current realities: excluding restructuring costs, the company now expects EBITDA to fall between DKK –260 million to –275 million. When including restructuring costs, this figure has been modified to range from DKK –485 million to –500 million, having previously been estimated higher.

Clarified Revenue and CAPEX Guidance

In addition to the EBITDA revisions, the company clarified its revenue expectations for 2024, now projected at DKK 130 to 140 million, a slight adjustment from the prior range of DKK 105 to 145 million. Similarly, capital expenditure (CAPEX) has also been fine-tuned to reflect a more focused expenditure plan, expected to land between DKK 130 to 140 million. These adjustments stem from a combination of factors, including significant R&D costs incurred in the fourth quarter.

Operational Restructuring Initiatives

The modifications in financial forecasting are largely attributed to the new management's commitment to enhancing operational efficiency and executing a restructuring program. The streamlining includes necessary write-downs and additional restructuring costs that were not previously anticipated. The swift attention to implementing change resulted in additional one-off costs estimated between DKK 5 to 10 million, reflecting the pressing need to adapt and align with new operational strategies.

Long-Term Strategy Commitment

Despite financial adjustments, Green Hydrogen Systems continues to emphasize its commitment to its long-term strategy. The company aims to implement cost-saving measures effectively while working towards commercial success with their HyProvide X-Series product line. Additionally, management aims for a stronger balance sheet to pave the way for profitability and self-sufficiency by the target date of 2026.

Future Announcements and Shareholder Engagement

Moving forward, Green Hydrogen Systems will not issue separate communications regarding the 2024 financial results, with key figures expected to be included in the annual report scheduled for release in March. Following this report, financial guidance for the year 2025 will also be disclosed, keeping shareholders informed of ongoing developments.

Capital Raise Plans

In a bid to bolster its financial standing, the company has also announced plans for a rights issue aimed at raising at least DKK 300 million. This initiative will present existing shareholders with subscription rights, planned for implementation in the upcoming months.

Contact Information for Inquiries

For further information, interested parties can reach out to Lene Rode, Head of Communications & External Relations, at +45 4085 2619 or via email.

About Green Hydrogen Systems

Green Hydrogen Systems is recognized as a pioneer in clean technology, specifically focusing on producing green hydrogen through pressurized alkaline electrolysis powered by renewable energy sources. By 2050, green hydrogen is expected to play a pivotal role in achieving net-zero emissions as the global energy infrastructure transforms. Since its establishment in 2007, the company has continually developed cost-competitive electrolysis technologies that have gained traction and endorsement from key players in the green energy sector.

Frequently Asked Questions

What adjustments were made to the EBITDA guidance for 2024?

The EBITDA guidance has been revised downwards, with expectations of DKK –260 to –275 million excluding restructuring costs, and DKK –485 to –500 million including restructuring costs.

How has the revenue guidance changed for Green Hydrogen Systems?

The revenue guidance for 2024 is now clarified to range from DKK 130 to 140 million, which is a slight modification from the previous forecast of DKK 105 to 145 million.

What are the plans for capital raise initiatives?

The company is planning a rights issue to raise at least DKK 300 million, providing existing shareholders with preemptive subscription rights, anticipated to take place in the first half of the year.

Who is the current CEO of Green Hydrogen Systems?

René Umlauft currently serves as the CEO, having taken on this role in November 2024, bringing a wealth of experience to lead the company through its current transitions.

What does Green Hydrogen Systems focus on in terms of technology?

Green Hydrogen Systems specializes in creating pressurized alkaline electrolysers that generate green hydrogen using renewable energy, contributing significantly to the shift towards sustainable energy solutions.

About The Author

Olivia Taylor here, a 26-year-old writer and financial advisor. After earning a degree in finance, I worked in the sector for years. I've always loved numbers and had a talent for simplifying difficult financial ideas so that anyone could understand. I wrote my first book because of this passion; it helps readers take charge of their financial futures by fusing real-life stories with useful financial advice.

Whether they are just beginning their careers, preparing for significant life events, or seeking to invest wisely, my goal with my writing is to enable people to make educated financial decisions. The foundation of my work is the conviction that security and freedom of the individual are largely determined by financial literacy. To further financial education, I run workshops and frequently write for financial blogs in addition to my books.

I like to travel, experience other cultures, and find inspiration in daily life when I'm not writing or examining market trends. My passion is utilizing sound financial practices to help people reach their financial objectives and lead the best lives possible.

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