Everfuel keeps financial forecast, seeks additional funding

Danish green hydrogen company Everfuel A/S (OSE:EFUEL) today reiterated its guidance for a negative full-year financial result in the range of EUR 11 million (USD 12.2m) to EUR 15 million and said it is taking specific actions to secure additional funding within a short time.

The Herning-based company, which develops large-scale green hydrogen production facilities to supply customers in Europe, published its second quarter 2024 financial results concurrently with the announcement that an affiliate of Swiss Life Asset Management AG had agreed with Everfuel’s three largest shareholders to launch an unregulated recommended voluntary tender bid in an attempt to delist it from Euronext Growth Oslo.

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In a press statement, Everfuel stressed that, with a cash position of EUR 13.1 million at the end of June, including EUR 4 million that is restricted and reserved, the company does not have a sufficient liquidity position to cover all planned activities the next 12 months. As a result, its board of directors and management have engaged in talks with the intention of ensuring the financing of the group’s operations and investments well into 2026. It was separately noted that Everfuel’s potential new ownership consortium had provided commitments regarding the future funding of the company’s existing and upcoming projects.

When it comes to the company’s financial performance for the first half of 2024, the results reflect the fact that it is still in the initial stages of commercialising the green hydrogen value chain, Everfuel said.

For the second quarter, the company posted a reduction of its EBITDA loss to EUR 2.7 million from EUR 4.6 million a year earlier, attributing it to a high-grading of its downstream project portfolio and optimised downstream operations. The reduction came despite a decline in total revenue to EUR 0.8 million from EUR 2.1 million.

For the full year, Everfuel anticipates reporting a combined cash flow from operating activities and investment activities in the range of EUR 20 million-25 million compared to EUR 40.5 million in 2023.

Meanwhile, the company continues to progress the delayed HySynergy 1 project towards commissioning and start-up later in the second half of 2024. Its upcoming launch is expected to have a material positive impact on revenue generation.

According to Jacob Krogsgaard, the founder and CEO of Everfuel, the company is experiencing increased interest for green hydrogen offtake, mainly from Germany.

(EUR 1.0 = USD 1.113)