Benzinga - Plug Power Inc (NASDAQ: PLUG) shares are trading lower Tuesday after the green hydrogen company reported mixed first-quarter financial results.
What Happened: Plug said first-quarter revenue increased 49% year-over-year to $210.29 million, which beat consensus estimates of $205.14 million, according to Benzinga Pro.
The company reported a first-quarter loss of 35 cents per share, which missed estimates for a loss of 26 cents per share.
Gross margin was negative 33% in the first quarter, down 8% year-over-year. Plug said it delivered 62MW of electrolyzers in the quarter, which was more than full-year 2022.
The company experienced higher fixed costs absorption in the quarter, but expects to see continuous cost improvement throughout 2023.
Plug said it's evaluating several sources of low-cost non-dilutive capital, including asset-backed loan facilities from major banks, as well as strategic partners and infrastructure funds.
"Plug has a strong unleveraged balance sheet and a profitable green hydrogen project pipeline which collectively create a strong liquidity position, giving us a significant runway to continue our plant buildout and scale our business. Longer-term capital needs are likely to be covered with operating cash flow and traditional project financing as the company and the green hydrogen industry continue to grow," the company said.
Plug noted that its liquid green hydrogen plant in Georgia will continue to ramp towards production in the second quarter. The company also negotiated a construction contract for its plant in Texas and has optimized its project execution strategy in Louisiana.
"We believe these activities put us on track to reach 200 tons-per-day (TPD) under construction and/or commissioning by the end of 2023," the company said.
Plug anticipates gross margin expansion toward its financial targets as additional plants come online in 2024 and beyond.
PLUG Price Action: Plug shares were down 5.71% at $8.75 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Plug Power.
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