After revealing bleak results in its half-year financials, McPhy Energy, a hydrogen (H2) production and storage specialist, remains confident with worldwide commissions lined up for the next two years.
In its 2016 half-year results, revenue settled at €2.2m ($2.4m), up from €1.8m ($2m) in its 2015 half-year financials but other ordinary income dropped by a significant 69% to €500,00 ($550,000).
McPhy did report that sales were up 25%, driven by the installations of its GNVert refuelling station in both Lyon and Valence Romans, but despite this growth in sales, net profit continued along the same path as the previous year with the company reporting a €5.2m ($5.7m) decrease.
Net cash declined by €3.8m ($4.2m) in the first-half of 2016, dropping from €14m ($15.4m) at the end of 2015 to €10.2m ($11.2m) as of 30th June 2016.
Staff costs were reduced by 10% compared to the prior period and along with containing other overhead expenses, McPhy implemented cost efficiency measures over the six-month period in an attempt to counteract its shrinking profits.
Despite these losses the company proclaimed it has “strengthened its position as a key player in the promising sector of new H2 applications” on the back of several commercial successes in the first-half of 2016.
McPhy’s position in China heightened after it was awarded a €6.4m ($7m) contract to supply a Power-to-Gas (P2G) system with Hebei Construction and Investment Group. The delivery of the 4MW H2 production equipment and storage unit is expected in mid-2017 with commissioning expected at the end of next year.
Additionally, it signed another contract in China to supply H2 production equipment for a H2-based cooling system for a thermal power generation plant. Delivery is expected by the end of 2016.
On home turf, McPhy was selected by GRTGaz to supply H2 production equipment for the Jupiter 1000 project – aiming to accelerate the deployment of P2G in France. This 1MW electrolyser is scheduled to be commissioned in 2018.
In leveraging its technical versatility, the group is continuously adapting its offering to development expected in the H2 mobility market
McPhy’s role in the US Department of Energy (DOE) $1m H2 Refuel H-Prize competition strengthened its position in the US after introducing its SimpleFuelTM turnkey refuelling solution to the market. In supplying small fleets of FCVs, it is understood these refuelling stations will serve as the link in connecting the wider infrastructure.
McFilling®, its modular refuelling station was also launched in the second half of 2015 to support infrastructure deployment plans in the Americas. The company proclaims it is experiencing positive developments in its initial phase in supplying captive utility fleets.
In a statement, the company remained resilient and stated, “In leveraging its technical versatility, the group is continuously adapting its offering to development expected in the H2 mobility market.”
“This is driven by the trends of addressing a broader public spearheaded by the major automotive manufacturers with the upcoming commercial release of several mass-produced models, and the development of other markets such as public transit, with the implementation of several programmes for H2-powered buses.”
McPhy will announce its 2016 full-year financial results on Tuesday 17th January 2017.