McPhy, specialist in equipment for the production, storage and distribution of hydrogen (H2), has announced a 21% drop in its revenue for 2018 due to delays affecting several orders.

McPhy’s revenue declined by 21% to €8m compared to €10.1m the year prior. The decline reflects the delays in the concretisation of several orders and an extension to the length of certain existing projects by McPhy customers.

Revenue in Europe continued to deliver a high growth, rising 23% in 2018, while revenue in Asia was held back by an end to recognition of revenue to the €6.4m contract to deliver the 4MW power-to-gas equipment in Hebei (China). Excluding the impact of this contract, revenue growth would have been 9% in 2018.

Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, said, “The contraction in our 2018 revenue mainly reflects the delays in the concretization of several orders and an extension to the length of certain existing projects by McPhy’s customers, despite highly buoyant conditions in the clean hydrogen market worldwide. These orders should materialize on the medium term. For example, the permit for the second hydrogen station in Lyon awarded at the beginning of 2018 entered into force only in December.” 

2018 milestones

April 2018 saw McPhy launch a whole new generation of electrolysers under its technology partnership with De Nora, providing a technological breakthrough substantially strengthening its competitive advantage. 

In May 2018, McPhy won a contract with the Lens-Béthue urban area for a 200kg/day 350-bar refuelling station. The station, which is due to enter into service in the first half of 2019, will power ten hydrogen buses. 2018 also saw McPhy sign an industrial and commercial partnership with EDF, the world leader in low-carbon energies to develop carbon-free hydrogen in France and around the world.

Looking forward

“We anticipate revenue growth in 2019 supported by a qualified pipeline of over €80m and operational implementation of our partnership with EDF, under which we are making joint submissions for heavy mobility competitive tenders such as bus refuelling stations with a capacity of several hundred kg per day; and such as platforms fuelling hydrogen trains and river ferries with a capacity of over one tonne per day are among the projects being tendered for,” said Mauberger.

“We are confident in Mcphy’s ability to seize and convert market opportunities owing to its renowned expertise and its cutting-edge technologies geared to meeting the colossal market needs linked to the imperative transition towards a lower carbon economy,” Mauberger concluded.