Plug Power – Many positive effects

10/18/2022 | Print view

Plug Power sees enormous potential for the company arising from the Inflation Reduction Act, as it benefits in a variety of ways from it. These are research grants, tax incentives, subsidies for hydrogen, or tax support for new production facilities in the US (manufacturing tax credits).

At the end of the second quarter, Plug remained at a minus of 173.3 million USD (previous year: minus 99.6 million USD), or a minus of 0.30 USD per share. Reported loss: 329 million USD in the first half of the year. This is certainly also due to the massive investments made by Plug in various projects and in the development of production capacities (gigafactories). After all, electrolysis capacities to a volume of 1.5 GW are now in the books, as we have reported. Turnover is to reach 900 to 935 million USD this year, mainly stemming from large customers like Amazon. In the bank still lie funds in the amount of about 3 billion USD, which however corresponds to a high capital outflow. At the stock market, Plug is again valued at over 17 billion USD.

FC forklift truck with H₂ refueling station from Plug

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With Amazon, Plug recently concluded an offtake agreement for 11,000 tonnes of hydrogen per year. With this, 15,000 forklift trucks can be powered. There is to be a total of 20,000. And the so far 70 shipping centers in which forklifts are driven for Amazon is to grow to 100. For the end of 2022, Plug forecasts being able to itself produce 70 tonnes of green hydrogen per day.

The share will move with the news developments in the hydrogen segment, even if many expectations about the future have already made it into the stock market valuation.

Disclaimer

Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.