Green Hydrogen Systems AS, a Danish company specializing in green hydrogen production, has announced that its net loss for the first half of the year has widened due to higher costs. However, the company also reported a significant increase in its order backlog.
In the first half of 2023, Green Hydrogen Systems AS recorded a net loss of 199.5 million Danish kroner ($29.2 million), compared to a loss of DKK147.6 million in the previous year. Despite the expanded loss, the company saw an increase in revenue, which rose to DKK14.7 million from DKK489,000.
The loss before interest, tax, depreciation and amortization (EBITDA) also widened to DKK161.6 million from DKK131.8 million. This increase in costs can be attributed to various factors, including product quality issues that required modifications, inflation in materials and components prices, and additional work needed in the assembly and manufacturing process.
On a positive note, Green Hydrogen Systems AS reported a significant growth in its order backlog, reaching 20 megawatts at the end of the first half of the year, compared to 13 megawatts in the previous year.
CEO Sebastian Koks Andreassen acknowledged certain challenges faced in the second quarter, particularly with supply chain and product quality issues. However, he remains confident that customer deliveries will accelerate from the third quarter onwards.
Looking ahead, Green Hydrogen Systems AS still aims to achieve a revenue of DKK120 million to DKK160 million by the end of 2023, despite projecting an EBITDA loss ranging from DKK280 million to DKK240 million. The company also maintains its capital expenditure forecast of DKK270 million to DKK300 million.