Plug Power (PLUG) reported $337M Q4, 2020 in Gross Billings for 2020, an increase from 42.5% year over year. It further announced multiple partnerships and executed strategic acquisitions, establishing a global platform as a Green Hydrogen Solutions Company.
As announced earlier, reported revenue and results were negatively impacted by certain costs of $456 million recorded in the fourth quarter. The company reported a strong balance sheet of over $5 billion in cash to execute on its global growth strategy and objectives.
Key Quarter & Yearly Highlights:
- Last year, marked a record year in gross billings, with Q4 gross billings of $96.3 million and $337 million for the full year reflecting plug power’s strong value proposition in the expanding hydrogen industry.
- Plug Power plans to make a continued investment during 2021 to deliver on the substantial growth opportunity in the green hydrogen economy on a global basis.
- Strategic acquisitions of United Hydrogen and Giner ELX positions Plug Power as a fully vertically green hydrogen generation company.
- Plug power announced global joint ventures and strategic partnerships with Renault, SK Group, and ACCIONA.
- Plug Power believes to be on track to deliver on recently raised 2021 and 2024 financial targets.
- The Company deployed over 2,200 fuel cell units in the fourth quarter of 2020 and over 9,800 for the full year.
- Reported GAAP numbers were impacted negatively by costs of $456 million related to non-cash charges for certain customer warrants, resulting in negative revenue of $316 million for the quarter and $100 million for the full year.
- Many other charges in the quarter included costs associated with certain Covid-19 related costs, investments related to new commercial platforms and business structures, and hydrogen gas supplier issues.
Plug Power continues to strengthen its position in green hydrogen solutions through acquisitions and strategic partnerships. The company completed the acquisition of Giner ELX and United Hydrogen to become a vertically integrated green hydrogen generation company. In addition, the company announced a partnership with ACCIONA to establish a leading green hydrogen platform for the Iberian Peninsula with a goal to reach a 20% market share of the green hydrogen business in Spain and Portugal by 2030.
After the close of 2020, the company announced multiple strategic partnerships, expanding its global presence. Plug Power announced a memorandum of understanding with Groupe Renault to launch a 50-50 Joint Venture. In addition, to a strategic partnership with the second-largest conglomerate in Korea, SK Group, to accelerate hydrogen as an alternative energy source in Asian markets. Plug Power and SK Group formally closed the equity investment on February 24, 2021.
Strong 2021 targets
Plug Power exceeded the updated target of over $330 million in gross billings in 2020. The company aims to enter 2021 with strong visibility driven by the expansion of pedestal customers in material handling, order book and also increasing sales traction in its electrolyzer business. The company reaffirmed its raised 2021 gross billings guidance of $475 million, up from $450 million, and plans to make significant CapEx and OpEx investments intended to support and accelerate the growth across all of our green hydrogen and fuel cell platforms.
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