‘We feel pretty confident’ despite investor concerns

Plug Energy (PLUG) CEO Andy Marsh brushed apart Wall Road issues concerning the hydrogen gasoline cell developer’s future after PLUG inventory plunged over the corporate’s going concern warning.

“We really feel fairly assured after we take a look at the whole lot,” Marsh advised Yahoo Finance (video above). “Once we take a look at our potential to handle via this, we will be tremendous. We’re speaking to of us about alternatives to boost money a lot bigger than what we’d like. And we’re simply making an attempt to do it prudently in order that our buyers are in a very good place in the long term.”

Plug Energy shares tanked on Friday and remained beneath strain on Monday. The sell-off got here after the agency posted weaker-than-expected outcomes and issued a “going concern” warning about its potential incapacity to fund operations over the subsequent yr.

“In mild of the corporate’s projected capital expenditure and working necessities beneath its present marketing strategy, the corporate is projecting that its current money and accessible on the market and fairness securities is not going to be ample to fund its operations via the subsequent twelve months,” the corporate wrote in a submitting revealed Thursday. “These circumstances and occasions increase substantial doubt concerning the firm’s potential to proceed as a going concern.”

On Monday, Marsh painted a rosier image of the corporate’s outlook, saying the agency deliberate to maneuver “prudently” so buyers “are in a very good place in the long term.” He careworn that the corporate had “zero debt” together with a “$5 billion unleveraged steadiness sheet.” Marsh additionally stated Plug Energy is contemplating a variety of choices, together with debt financing to boost $500 million, in addition to slowing plant openings.

“I would be disingenuous if I did not say this has been a bump on the street,” Marsh stated. “However we now have robust demand by main clients.”

Plug shares have fallen greater than 70% year-to-date, as clear vitality shares take an outsized beating, pushed by issues about greater charges in a capital intensive sector, and falling valuations.

Marsh added that “if the market was rising slightly bit sooner, it could be simpler.”

Within the third quarter, Plug Energy posted a lack of $0.47 per share, steeper than the $0.30-per-share loss anticipated by Wall Road. Internet income for the quarter got here in at $198.7 million. The corporate’s web loss within the quarter totaled $283.5 million.

Plug Power CEO Andy Marsh at a demonstration. (GLOBE NEWSWIRE)

Plug Energy CEO Andy Marsh at an indication. (GLOBE NEWSWIRE) (Globe Newswire)

In its earnings launch, the agency blamed the loss on “unprecedented provide challenges” for hydrogen, saying that contributed to quantity constraints and deployment delays. The disruptions come as Plug seems to deliver on-line two new inexperienced hydrogen manufacturing crops in Georgia and Louisiana. Marsh stated the Georgia plant alone, scheduled to open on the finish of this yr, can be sufficient to alleviate the strain.

Following Plug’s outcomes Thursday, JPMorgan, Oppenheimer, and RBC Capital all downgraded the inventory and lowered their value targets.

“Whereas we consider Plug Energy can cycle previous its present money circulation points, the present working and capital markets environments are difficult,” JPMorgan’s Invoice Peterson wrote in a word to shoppers. The analyst downgraded the inventory to Impartial and lowered his value goal to $6 from $10 per share.

Akiko Fujita is an anchor and reporter for Yahoo Finance. Comply with her on Twitter @AkikoFujita.

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