McPhy has registered significant growth in sales and orders in 2016, benefiting from investments made in recent years in developing and scaling up its offering.
After winning the call for tenders with the Hebe province of China, the contract with GRTGaz for the Jupiter 1000 project and the contract with German energy supplier, Energiedienst, McPhy has won a total of 6 MW. These contracts have laid solid foundations for continuing growth in 2017. The first two contributed to the 93% growth in sales.
Over 2016, revenue from subsidised projects and research tax credits remained stable at €2.3m ($2.5m).
The strong growth in sales in the second half of 2016 explains the corresponding increase in purchases.
The shift of the product mix to very large systems has temporarily impacted margins. Despite maintaining tight controls over fixed costs, and in light of continuing efforts in R&D amounting to €3.1m ($3.3m), the sales growth is only partially reflected, this year, at the level of operating profit.
For year, the change in the cash and cash equivalents amounted to €5.9m ($m). On the 31st of December 2016, McPhy had a cash position of €8.1m ($8.6m) for total assets of €25.7m ($27.4m).
In 2016, McPhy confirmed the relevance of its offering in markets for new hydrogen (H2) applications contributing to the global energy transition.
Renewable energy surplus valorisation
Whereas the growing contribution of renewables in the energy mix calls for energy sources to offset their intermittency, the group won contacts over the last 12 months for 6 MW in the Power-to-Gas sector for a total of nearly €10m ($10.6m) in revenue.
Zero emission mobility
In an environment characterised by the multiplication of initiatives promoting the zero emission mobility, McPhy has actively contributed to the development of French network of H2 refuelling infrastructure. The company has accordingly equipped 7 of the 15 H2 refuelling stations in France.
Over the period, it has in particular delivered the stations of Valence, Lyon and Sarreguemines. Installed on the French-German border, the Sarreguemines refuelling station is the first French station equipped with a green H2 generation solution on-site.
McPhy was also awarded contracts in 2016 to equip refuelling stations of Rouen and Singapore scheduled for delivery in the first-half of 2017.
McPhy and its US partners completed the technological development of the compact and competitive refuelling solutions, SimplefuelTM. The simplicity of installation and all-in-one functionalities and applications of this station, to be distributed on an exclusive basis in Europe by McPhy, opens up many opportunities for equipping logistics platforms, rental companies, car dealerships, etc.
Green H2 for industry
McPhy accelerated the deployment in 2016 of its equipment for producing zero-emission H2 on-site. It is in the process of equipping a first industrial platform in France with a solution combining zero H2 emission production and a solid-state storage facility to be delivered in 2017. It also delivered in early 2017 a solution for on-site H2 production for a cooling system for the alternator of the Chinese thermal power generation plant CPI Zaoquan.
McPhy has stated that it is confident in the continuing prospects for strong growth momentum and improving profitability in a buoyant market context.
The potential of this market is reinforced by the strong commitment of major groups, notably by the 13 global leaders gathered within the Hydrogen Council who have committed to bring their annual investments to a minimum of €1.9bn ($2bn) in the next five years.