Danish electrolyzer manufacturer Green Hydrogen Systems saw a widening operating deficit in 2022, however less severe than expected.

For 2023, GHS projects significant revenue growth despite the company projecting a substantial operating deficit for the period. Moreover, the company targets a capital raise within the first six months of the year, GHS writes in a press release highlighting various figures.

Customer contracts added DKK 10m (EUR 1.3m) in revenue throughout 2022 against DKK 5.2m in 2021 within the company’s projected range of DKK 1-19m. Meanwhile, the gross deficit shrank to DKK 10m in 2022 from DKK 17m in 2021.

”In 2022, we reached a revenue of DKK 10 million as a result of two customer deliveries of the A90 electrolyser module. The revenue and other unaudited key figures were in line with our latest guidance issued in August 2022,” states Chief Executive Officer Sebastian Koks Andersen in the press release.

”From Q3 2022, we restarted sales of the A90 electrolysers which have led to an increasing sales pipeline and four new customer orders in Q4 2022 and January 2023.”

On the basis of these factors, earnings before interest, taxes, depreciations and amortizations came to negative DKK 249m against a slightly less severe deficit of DKK 149m. Meanwhile, the EBIT post showed negative DKK 283m against negative DKK 163m in 2021. 

GHS had estimated negative EBITDA in the DKK 235-255m range and an EBIT loss between DKK 270m and DKK 290m.

In 2023, the company seeks to strengthen its balance with additional capital, though without disclosing the scope of the increase.

”Green Hydrogen Systems targets a capital increase during first half of 2023. We are currently in dialogue with several of our larger shareholders regarding such potential capital increase,” the company reports.

GHS projects revenue in the DKK 120m-160m range and negative EBITDA of DKK 210m-240m. 

”The revenue range is partly based on the share of total backlog with targeted delivery in 2023 as well as in-for-out orders that may be signed and revenue recognized in 2023,” the electrolyzer maker writes:

”Due to costs related to delays in delivery of the 2022 backlog the recognised revenue has been reduced by DKK 15 million compared to the initial order value.”

Investments are also estimated to reach between DKK 270m and DKK 300m against DKK 335m in 2022.