FuelCell Energy has reported financial results for its third quarter ended 31st July 2017.

FuelCell Energy reported total revenues for the Q3 of 2017 of $10.4m, compared to $21.7m for the comparable prior year period. The company said that the change in revenue reflects the transition to retaining projects in the generation portfolio.

A gross loss of $2.6m was incurred in the third quarter of 2017, compared to a gross profit of $0.4m for the comparable prior year period. Production levels were adjusted in the third quarter to meet backlog requirements. This led to the under-absorption of fixed overhead costs compared to the prior year period that had a higher level of production.

Operating expenses for the current period totaled $11.7m compared to $10.8m for the prior year period. The increase in administrative and selling expenses reflected higher professional fees, particularly in relation to awarded contracts and new proposals, such as the recently announced 40 megawatt (MW) award from Long Island Power Authority (LIPA) and the 20MW South Korean project.

Net loss attributable to common shareholders for the third quarter of 2017 totaled $17.8m compared to $11.8m for the third quarter of 2016.

EBITDA, in the third quarter of 2017, totaled $10.9m. Capital spending was $2.2m in the third quarter of 2017 and depreciation expense was $2.2m, including depreciation of property, plant and equipment as well as Project assets.

Chip Bottone, President and CEO, FuelCell Energy, said, “Recent project awards combined with existing backlog now total about $1.5bn, which is transformational for the company by providing the sales volume needed to reach profitability.”

He continued, “We have a global platform and demonstrated a sizeable win in South Korea in a relatively short period of time since re-assuming Asian marketing rights as we pursue a number of multi-megawatt opportunities in the region.”