Annual Report • Feb 15, 2022
Annual Report
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| Q4 and Year-end 2021 highlights 3 | |
|---|---|
| Financial statements 10 | |
| Accounting principles 14 | |
| Notes 14 |
On 17th of November 2021 it was announced that the Company had reached an agreement with Tianjin HQY Hydrogen Machinery Co., Ltd. ("THM") where HydrogenPro acquires a 75% stake. The first step is to set up a 300MW annual electrolyser production capacity by Q2 2022 in Tianjin, China.
This completes the first major step of HydrogenPro's global technology and fabrication plan. THM will transfer employees, fixed assets and intellectual property to the new company.
THM has a long-standing history of producing electrolyser components, parts and systems as a supplier to the electrolyser industry in China and has over the past years expanded into assembly and sales of complete electrolysers.
HydrogenPro's total investment cost is approximately NOK 48 million, whereof approximately NOK 8 million has been pre-paid and the remaining capital injection is approximately NOK 40 million (1 RMB = 1.35 NOK). Additional investments of approx. NOK 25m for further upgrading of the fabrication facility to meet HydrogenPro's standards.
The board of the joint venture will consist of five representatives, with a majority appointed by HydrogenPro. HydrogenPro board member Jarle Dragvik will be chair of the joint venture board.
The production facility will be located in Tianjin and will be equipped with new machines. It is expected to be ready for pilot production by the end of 2021. When fully operational, the facility will have an annual electrolyser production capacity of 300MW, with substantial room for further expansion.
The Company's active sales pipeline increased with 46%, from 8.2GW to 12.0 GW, or from 66 to 84 projects during fourth quarter. Projects and contract negotiations continue to mature and momentum is building up. Increased Governmental commitments, incl. carbon dioxide emission quotas and award of public funding under various EU or state agencies financing programs are expected to be a catalyst for final investments decisions to be made by project owners.
The Company continued to mature both new and existing key contract opportunities, particularly in France and the US. With reference to the Company's stock exchange notice on 22nd of October 2021 H2V sold the remaining ownership of the Normandy hydrogen project, initially planned for 100MW, to Air Liquide. The transaction was announced by Air Liquide in a news release issued on 20th October 2021. Consequently, H2V has formally notified HydrogenPro that the ongoing co-operation on the Normandy project will cease.
The announced transaction has no impact on HydrogenPro's work with H2V to mature the Dunkirk green hydrogen project, also initially for 100MW. The companies continue to mature the project and a public survey is currently on-going. This is expected to be finalized by end of April 2022. After the public survey is completed, the next step is to be granted the required authorizations by French authorities followed by FID during second half of 2022.
On 25th of October 2021, Mr. Elling Nygaard was appointed Chief Executive Officer. Mr. Nygaard brings a demonstrated sales and business development experience from project-oriented technology businesses, where strategic partnerships have played a central role. For more than 20 years, he has held a number of senior management positions, lately working at ABB specifically on hydrogen, including developing a global partnership with HydrogenPro. He has also held the CEO position at several technology companies. He holds an electrical engineer degree, and economy- and market management from BI. Elling joined HydrogenPro on 1st of November 2021.
On 18th of October 2021 an Extraordinary General Meeting approved the following Board members: Ellen Hanetho (Chair), Richard Espeseth, Jarle Tautra, Kermit Nash and Jarle Dragvik. The changes in the Board include the addition of three new members to HydrogenPro's Board of Directors; Jarle Tautra, Kermit Nash and Jarle Dragvik, who will significantly strengthen the Board of Directors' capacity to support the Company's management. Current board member Ellen Hanetho replaces Chair Walter Qvam, who stepped down together with HydrogenPro co-founder Terje Mikalsen.
The Company continues to strengthen the organisation and its capacities and competences.
The factory for production of HydrogenPro's proprietary next generation electrode technology is completed. The production of full-scale electrodes with the new surface treatment is currently ongoing. The Company invested NOK 3.5 million in the production facility during the quarter.
The Company has invested NOK 12.7 million in production capacity and technology in China during the quarter. In addition, the Company continues to work on plans and preparation for establishing independent supply chains including fabrication both in Asia, Europe and the US.
On 29th of October 2021 HydrogenPro announced that it will join Black & Veatch and Energy Vault, Inc. in financing all expected cash requirements up to the planned financial close. HydrogenPro injects a convertible loan of USD 3 million in DG Fuels together with co-investors. Upsizing of project will require water electrolyser capacity of up to 839 megawatts (MW), with HydrogenPro being the exclusive provider, compared to the 120 MW previously announced. DG Fuels has received several firm commitments and nonbinding letters of intent for offtake agreements for a material portion of its expected production. A FEL-2 study is currently being undertaken by Black & Veatch.
DG Fuels is expected to raise additional equity and debt to fund the construction of its production facility. DG Fuels aims to develop several facilities in North America and Europe, designed to produce low-carbon sustainable aviation fuel by combining carbon from waste feedstock with green hydrogen from renewable sources.
The world's largest single stack high-pressure alkaline electrolyser system is currently being fabricated in China. Covid-19 infection control measures in China in early 2022 has led to a lock down of the fabrication facility which has caused a delay in the delivery of approx. four weeks. The system is planned to be completed at the fabrication facility by end of first quarter 2022 and then transported to Norway for installation and commissioning.
On 27th of January 2022 HydrogenPro announced a Memorandum of Understanding (MoU) with Larsen & Toubro (L&T), an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services, for a partnership for manufacturing of hydrogen electrolysers in India.
Under this agreement, HydrogenPro and L&T will jointly work towards setting up of a joint venture in India for Gigawatt-scale manufacturing of Alkaline Water Electrolysers based on HydrogenPro technology for Indian market and other select geographies. The proposed joint venture in India is in line with L&T's strategic vision to be present across the green energy value chain and HydrogenPro's strategy of establishing a global manufacturing footprint to maintain cost leadership and ensure local presence.
On 3rd of February 2022 HydrogenPro announced that the Company has signed a contract for an initial delivery of 40 electrolysers to Mitsubishi Power Americas, Inc. making it one of the largest electrolyser system contracts ever placed. The initial value of the contract exceeds USD 50 million for HydrogenPro's scope of delivery. The EPC and other system deliverables for a turn-key electrolyser green hydrogen production plant will be supplied by other companies. The green hydrogen will be consumed for power generation in the U.S.
The purchase order is dependent on a final investment decision, which is expected in the first half of 2022. However, a nonrefundable commitment has been made by Mitsubishi Power, enabling HydrogenPro to prepare for production.
The outlook for the Company's services continue to strengthen backed by an ever-increasing focus on the need for an energy transition away from fossil energy sources. This is manifested through an increasing number of opportunities and projects within the green hydrogen space. Clients continue to mature projects and financing and move steadily towards final investment decision and thus contract awards. The signing of the Purchase Contract with Mitsubishi Power Americas Inc. was an important milestone and the Company expects to also see a strong demand for its early phase and front-end engineering studies.
HydrogenPro is attractively positioned in this developing market due to its mature and well proven high pressure alkaline technology in combination with energy efficient electrode technology. The Company has previously stated its ability to deliver a Levelized Cost of Hydrogen ("LCOH") at a cost of USD 1.20 USD per kg (assumed electricity price of 0.02 USD/kWh).
| INCOME STATEMENT | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | FY 2021 |
|---|---|---|---|---|---|
| Revenue, incl. other operating income | 11.1 | 8.2 | 0.1 | 0.6 | 20.0 |
| Raw materials and consumables used | 4.3 | 6.5 | 0.1 | 0.7 | 11.6 |
| Payroll expenses | 9.2 | 3.1 | 2.0 | 1.7 | 16.0 |
| Other operating expenses | 10.7 | 3.6 | 3.3 | 3.6 | 21.1 |
| Adj. EBITDA (excl. non-cash operating expenses) | -13.1 | -4.9 | -5.3 | -5.4 | -28.7 |
| Non-cash payroll expenses | 3.4 | 3.5 | 5.3 | 2.7 | 15.0 |
| Non-cash other operating expenses | 0.0 | 2.2 | 1.4 | - | 3.6 |
| EBITDA | -16.5 | -10.6 | -12.0 | -8.1 | -47.2 |
| Depreciation and amortisation expenses | 2.2 | 1.3 | 1.3 | 1.3 | 6.2 |
| EBIT | -18.7 | -12.0 | -13.3 | -9.5 | -53.5 |
| Net financial items | 1.4 | 0.4 | 0.0 | -0.1 | 1.7 |
| Result before tax | -17.3 | -11.6 | -13.3 | -9.6 | -51.8 |
| Tax expense | -0.6 | -0.2 | -0.2 | -0.3 | -1.2 |
| Net profit | -16.8 | -11.4 | -13.1 | -9.3 | -50.5 |
HydrogenPro generated revenues of NOK 11.1 million during fourth quarter 2021 compared to NOK 8.2 million in third quarter 2021. Revenues are recognized according to the percentage of completion principle. Revenues in the quarter relates mainly to the delivery of the Purchase Order signed with Mitsubishi on 24th of August 2021, for the delivery of world's largest single stack high-pressure alkaline electrolyser system. In addition to this, two engineering studies contributed to the reported sales in Q4.
Adjusted EBITDA (excl. option-based compensation cost of NOK 3.4 million, which has a non-cash effect.) of NOK -13.1 million during the fourth quarter 2021 (NOK -4.9 million during the third quarter 2021).
Reported EBITDA during the quarter was –16.5 million vs. NOK -10.6 million in Q3 2021, with an operating loss of NOK 18.7 million vs. NOK 12.0 million in the third quarter.
Operating expenses: NOK 4.3 million in raw materials and consumables used (NOK 6.5 million in third quarter), NOK 12.6 million in total reported payroll expenses (NOK 6.6 million in third quarter) and NOK 10.7 million in other operating expenses (NOK 5.8 million in third quarter) and NOK 2.2 million in depreciation & amortisation expenses (NOK 1.3 million in third quarter).
Net financial items in the quarter amounted to NOK 1.4 million vs NOK 0.4 million in Q3 2021.
Net loss (after tax) for the quarter ended at NOK 16.8 million vs. a net loss of NOK 11.4 million in Q3 2021.
| BALANCE SHEET | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | FY 2021 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Total intangible assets | 65.8 | 61.3 | 59.5 | 56.7 | 55.3 |
| Plant, machinery and equipment | 22.8 | 16.6 | 11.6 | 2.6 | 2.8 |
| Financial fixed assets | 48.0 | 7.3 | 7.3 | 0.1 | 0.1 |
| Total fixed assets | 136.6 | 85.2 | 78.4 | 59.4 | 58.1 |
| Current operating assets | 20.9 | 14.9 | 3.9 | 5.7 | 5.7 |
| Cash and cash equivalents | 382.3 | 443.4 | 471.2 | 489.5 | 506.1 |
| Total current assets | 403.2 | 458.2 | 475.1 | 495.2 | 511.8 |
| Total assets | 539.8 | 543.4 | 553.5 | 554.7 | 570.0 |
| EQUITY AND LIABILITIES | |||||
| Total equity | 517.3 | 528.0 | 533.6 | 540.6 | 515.7 |
| Provisions | 10.4 | 9.7 | 9.8 | 10.1 | 10.3 |
| Total short term liabilities | 12.0 | 5.7 | 10.0 | 4.0 | 44.0 |
| Total liabilities | 22.5 | 15.4 | 19.8 | 14.1 | 54.3 |
| Total equity and liabilities | 539.8 | 543.4 | 553.5 | 554.7 | 570.0 |
Total assets as of 31st of December 2021 were NOK 539.8 million, whereof NOK 403.2 million in current assets (NOK 382.3 million in cash and deposits and NOK 20.9 million in other current assets), NOK 136.6 million in total fixed assets, whereof NOK 65.8 million in intangible assets, NOK 22.8 million in plant, machinery and equipment and NOK 48.0 million in financial fixed assets.
Total equity amounted to NOK 517.3 million and total liabilities of NOK 22.5 million, whereof NOK 12.0 million in short-term liabilities and NOK 10.4 million in long-term liabilities/provisions. The book equity ratio as of 31st December 2021 was 95.8% compared to 97.2% at end of third quarter.
| CASH FLOW STATEMENT | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | FY 2021 |
|---|---|---|---|---|---|
| Cash balance start of period | 443.4 | 471.2 | 489.5 | 506.1 | 506.1 |
| Net cash flows from operating activites | -11.1 | -19.7 | 2.0 | -14.2 | -43.0 |
| Net cash flows from investing activites | -51.8 | -8.1 | -20.3 | -2.7 | -82.9 |
| Net cash flows from financing activites | 1.7 | - | - | 0.3 | 2.0 |
| Total changes in cash | -61.1 | -27.8 | -18.3 | -16.6 | -123.9 |
| Cash balance end of period | 382.3 | 443.4 | 471.2 | 489.5 | 382.3 |
Net change in cash position during the fourth quarter was NOK -61.1 million compared to NOK - 27.8 million in Q3 2021.
Net cash flow from operating activities was NOK -11.1 million, compared to NOK -19.7 million in Q3 2021.
During the fourth quarter net cash flow from investing activities was NOK - 51.8 million, whereof: Convertible note to DG Fuels (NOK 25.1million), production capacity in China (NOK 12.7million), next generation electrodes (NOK 8.3 million, whereof NOK3.5 million in the production facility and NOK 4.8 million is an additional cash consideration in connection with the acquisition of Advanced Surface Plating ApS) and other (NOK 5.7 million). Net cash flow from financing activities of NOK 1.7 million mainly related to a share capital increase in connection with exercise of share options, vs. NOK 0.0 million in Q3 2021.
| Note | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q1-Q4 2021 | Q4 2020 | FY 2020 | |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 1, 2 | 11 065 727 | 8 239 055 | 133 468 | 598 047 | 20 036 297 | 15 458 871 | 26 557 242 |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 136 330 | 136 330 | |
| Operating Income | 11 065 727 | 8 239 055 | 133 468 | 598 047 | 20 036 297 | 15 595 201 | 26 693 572 | |
| Raw materials and consumables used | 2 | 4 303 723 | 6 497 067 | 94 856 | 736 389 | 11 632 035 | 4 196 315 | 6 322 540 |
| Payroll expenses | 12 598 939 | 6 597 820 | 7 376 382 | 4 367 980 | 30 941 121 | 2 913 491 | 10 987 667 | |
| Depreciation of tangible and intanglible fixed assets | 3, 4 | 2 188 714 | 1 346 140 | 1 346 139 | 1 346 140 | 6 227 133 | 331 249 | 357 147 |
| Other operating expenses | 10 676 198 | 5 767 561 | 4 650 840 | 3 604 154 | 24 698 753 | 10 370 217 | 14 986 780 | |
| Operating expenses | 29 767 574 | 20 208 588 | 13 468 217 | 10 054 662 | 73 499 042 | 17 811 272 | 32 654 134 | |
| Operating profit/loss | -18 701 847 -11 969 533 -13 334 749 | -9 456 615 -53 462 745 | -2 216 071 | -5 960 562 | ||||
| Financial income and expenses | ||||||||
| Other interest income | 2 054 968 | 0 | 0 | 953 | 2 055 921 | 449 068 | 449 068 | |
| Other financial income | 72 939 | 521 871 | 76 222 | 276 062 | 947 094 | 606 515 | 1 455 934 | |
| Other Interest expenses | 2 089 | 11 959 | 18 620 | 16 810 | 49 478 | 35 965 | 491 562 | |
| Other financial expenses | 762 902 | 114 505 | 33 141 | 361 208 | 1 271 756 | 695 423 | 3 693 540 | |
| Net financial income and expenses | 1 362 916 | 395 407 | 24 461 | -101 003 | 1 681 781 | 324 195 | -2 280 100 | |
| Result before tax | -17 338 931 -11 574 126 -13 310 288 | -9 557 618 -51 780 964 | -1 891 875 | -8 240 662 | ||||
| Tax expense | -569 533 | -169 721 | -241 331 | -250 882 | -1 231 467 | 0 | 7 726 572 | |
| Operating result after tax | -16 769 398 -11 404 405 -13 068 957 | -9 306 736 -50 549 497 | -1 891 875 | -15 967 234 | ||||
| Net result after tax | -16 769 398 -11 404 405 -13 068 957 | -9 306 736 -50 549 497 | -1 891 875 | -15 967 234 | ||||
| Loss brought forward | 16 769 398 | 11 404 405 | 13 068 957 | 9 306 736 | 50 549 497 | 1 891 875 | 15 967 234 | |
| Total brought forward | -16 769 398 | -11 404 405 | -13 068 957 | -9 306 736 | -50 549 497 | 1 891 875 | -15 967 234 |
| ASSETS Fixed assets Intangible fixed assets Research and development 3 47 729 695 44 764 337 45 130 478 45 707 171 46 852 005 Licences, patents etc. 3 18 085 428 16 583 511 14 386 632 11 038 616 8 456 384 Total intangible assets 65 815 123 61 347 848 59 517 110 56 745 787 55 308 389 Tangible fixed assets Plant and machinery 4 20 206 148 16 373 021 11 428 790 2 565 047 2 715 897 Equipment and other movables 4 2 607 513 197 978 135 327 79 800 40 596 Total tangible fixed assets 22 813 661 16 570 999 11 564 117 2 644 847 2 756 494 Financial fixed assets Investments in subsidiaries 101 000 101 000 50 000 50 000 50 000 Loans to group companies 633 644 0 0 0 0 Investments in shares 1 1 1 1 6 702 Other long term receivables 7 47 225 981 7 154 536 7 268 038 0 0 Total financial fixed assets 47 960 626 7 255 537 7 318 039 50 001 56 702 Total fixed assets 136 589 410 85 174 384 78 399 266 59 440 635 58 121 584 Current assets Inventories 307 580 0 0 0 0 Receivables Accounts receivables 13 042 316 9 242 146 1 037 999 1 047 320 3 182 831 Other receivables 7 593 827 5 534 386 2 849 105 4 673 568 2 540 970 Receivables from group companies 0 103 767 0 0 0 Total debtors 20 636 143 14 880 299 3 887 104 5 720 888 5 723 801 Bank deposits, cash and cash equivalents Bank deposits, cash and cash equivalents 382 255 258 443 353 148 471 173 983 489 504 526 506 110 924 Total Bank deposits, cash and cash equivalents 382 255 258 443 353 148 471 173 983 489 504 526 506 110 924 Total current assets 403 198 981 458 233 447 475 061 087 495 225 414 511 834 725 Total assets 539 788 392 543 407 832 553 460 353 554 666 049 569 956 309 |
Note | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | FY 2020 |
|---|---|---|---|---|---|---|
| Note | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | FY 2020 | |
|---|---|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||||
| Equity | ||||||
| Paid in equity | ||||||
| Share capital | 5, 6 | 58 028 | 57 806 | 57 806 | 57 806 | 57 169 |
| Share premium reserve | 576 141 266 | 574 588 441 | 574 588 441 | 574 588 441 | 542 170 113 | |
| Other paid-in equity | 26 800 140 | 22 978 690 | 17 016 162 | 10 873 342 | 9 098 130 | |
| Total restricted equity | 602 999 434 | 597 624 937 | 591 662 409 | 585 519 589 | 551 325 412 | |
| Retained earnings | ||||||
| Other equity | ||||||
| Loss brought forward | -85 684 773 | -69 596 847 | -58 032 116 | -44 954 981 | -35 648 245 | |
| Total retained earnings | -85 684 773 | -69 596 847 | -58 032 116 | -44 954 981 | -35 648 245 | |
| Total equity | 6 | 517 314 661 | 528 028 089 | 533 630 293 | 540 564 608 | 515 677 167 |
| Liabilities | ||||||
| Provisions | ||||||
| Deffered tax | 10 435 792 | 9 651 480 | 9 821 199 | 10 062 531 | 10 307 441 | |
| Total provisions | 10 435 792 | 9 651 480 | 9 821 199 | 10 062 531 | 10 307 441 | |
| Current liabilities | ||||||
| Trade payables | 3 289 534 | 2 148 865 | 5 063 308 | 365 229 | 7 183 663 | |
| Public duties payable | 5 071 224 | 1 181 809 | 2 764 869 | 1 348 573 | 1 101 563 | |
| Other short term liabilities | 3 677 182 | 2 397 589 | 2 180 682 | 2 325 107 | 35 686 475 | |
| Total short term liabilities | 12 037 940 | 5 728 263 | 10 008 859 | 4 038 909 | 43 971 701 | |
| Total liabilities | 22 473 732 | 15 379 743 | 19 830 059 | 14 101 441 | 54 279 142 | |
| Total equity and liabilities | 539 788 392 | 543 407 832 | 553 460 353 | 554 666 049 | 569 956 309 |
| Notes | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q1-Q4 2021 | FY 2020 | |
|---|---|---|---|---|---|---|---|
| Cash flows from operating activities Net Income / (Loss) before tax |
-17 338 930 | -11 574 125 | -13 310 290 | -9 557 618 | -51 780 963 | -8 240 662 | |
| Depreciation, amortisation & impairment | 3, 4 | 2 188 714 | 1 346 140 | 1 346 138 | 1 346 140 | 6 227 132 | 357 147 |
| Option cost no cash effect | 3 424 751 | 5 706 355 | 6 721 243 | 2 680 945 | 18 533 294 | 7 638 132 | |
| Cange in inventory | 0 | 0 | 0 | 0 | 0 | ||
| Change in accounts receivable | -3 800 170 | -8 204 147 | 9 321 | 2 135 511 | -9 859 485 | -2 036 531 | |
| Change in accounts payable | 1 140 669 | -2 914 443 | 4 698 079 | -6 818 434 | -3 894 129 | 3 990 238 | |
| Write-down shares | 0 | 0 | 0 | 6 701 | 6 701 | 0 | |
| Effect of foreign currency translation | 243 150 | 81 262 | 6 408 | 5 972 | 336 792 | 0 | |
| Change in other accruals | 3 085 826 | -4 155 201 | 2 517 911 | -3 992 688 | -2 544 152 | -5 397 718 | |
| Net cash flows from operating activities | -11 055 990 | -19 714 159 | 1 988 810 | -14 193 471 | -42 974 811 | -3 689 394 | |
| Cash flows from investing activities | |||||||
| Change in tangible assets | 4 | -6 301 917 | -5 166 461 | -9 108 014 | -62 515 | -20 638 907 | -2 332 876 |
| Change in intangible assets | 3 | -4 867 886 | -3 002 716 | -3 943 301 | -2 609 377 | -14 423 280 | -6 947 497 |
| Change in other investing activities | 7 | -40 601 322 | 62 502 | -7 268 038 | 0 | -47 806 858 | 0 |
| Net cash flows from investing activities | -51 771 125 | -8 106 675 | -20 319 353 | -2 671 892 | -82 869 045 | -9 280 373 | |
| Cash flows from financing activities | |||||||
| Repayment of loan | 0 | 0 | 0 | 0 | 0 | -23 264 446 | |
| Transaction not recognized over P&L | 176 177 | 0 | 0 | 0 | 176 177 | 0 | |
| Proceeds from Equity Issue | 5, 6 | 1 553 048 | 0 | 0 | 258 965 | 1 812 013 | 532 352 738 |
| Net cash flows from financing activities | 1 729 225 | 0 | 0 | 258 965 | 1 988 190 | 509 088 292 | |
| Cash balance start of period | 443 353 148 | 471 173 983 | 489 504 526 | 506 110 924 | 506 110 924 | 9 992 399 | |
| Net change in cash | -61 097 890 | -27 820 835 | -18 330 543 | -16 606 398 | -123 855 666 | 496 118 525 | |
| Cash balance end of period | 382 255 258 | 443 353 148 | 471 173 983 | 489 504 526 | 382 255 258 | 506 110 924 |
The quarterly statements have been prepared in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway. All notes of importance for substantiation of the accounts are included.
There has not been any accounting policy change in fourth quarter 2021.
| Per segment | Q4 2021 | Q3 2021 | FY 2021 | FY 2020 |
|---|---|---|---|---|
| Norway | 0 | 0 | 0 | 136 330 |
| Europe | 102 221 | 71 905 | 905 641 | 8 412 867 |
| America | 8 037 308 | 8 167 150 | 16 204 458 | 18 144 375 |
| Asia Pacific | 2 926 198 | 0 | 2 926 198 | 0 |
| Total | 11 065 727 | 8 239 055 | 20 036 297 | 26 693 572 |
| Note 2 Long-term contracts |
||||
|---|---|---|---|---|
| Group balance sheet value of projects | Q4 2021 | 30.09.2021 | 30.06.2021 | FY 2020 |
| Included in trade debtors | ||||
| Advance invoices production | 455 941 | 614 221 | 0 | 0 |
| Retained payments according to contract | 1 034 725 | 1 024 130 | 974 588 | 974 588 |
| Included in short term debt | ||||
| Prepayments from customers | 1 348 118 | 73 280 | 145 185 | 786 700 |
| Remaining production on projects with losses | 200 000 | 179 500 | 350 000 | 250 000 |
| Total intangible | |||
|---|---|---|---|
| Group intangible assets | Licences | R&D | assets |
| Purchase cost 01.01.2021 | 8 456 384 | 46 852 005 | 55 308 389 |
| Additions | 9 629 045 | 6 180 989 | 15 810 034 |
| Impairment | 0 | 0 | 0 |
| Disposals | 0 | 0 | 0 |
| Purchase cost 31.12.2021 | 18 085 429 | 53 032 994 | 71 118 423 |
| Accumulated Dereciation 31.12. | 0 | 5 303 300 | 5 303 300 |
| Net book value 31.12.2021 | 18 085 430 | 47 729 695 | 65 815 124 |
| Dereciation in the quarter | - | 1 787 364 | 1 787 364 |
| Economic useful life | 5 - 10 years | 10 years | |
| Dereciation plan | Straight line | Straight line |
Additional information regarding licences and R&D costs:
In the quarter the additions to licences corresponds to several investment projects:
Additions to licences include capitalized costs to secure supply of alkaline elektrolysers. HydrogenPro have invested in access to technology and production capacity of alkaline technology electrolysers. The economic lifetime is expected to be 5 years. Depreciation will be effective when the first electrolysers are delivered. During the quarter these investments corresponded to approximately 1,5 MNOK (6,3 MNOK YTD 2021).
17 November 2021 HydrogenPro reached an agreement with Tianjin HQY Hydrogen Machinery Co., Ltd. ("THM") to take control over the fabrication supply of electrolysers, which will allow HydrogenPro to utilize THM's electrolyser technology globally. HP have pre-paid some of the agreed capital injection as of 31.12.2021. The prepayments are placed under other long term receivables (see note 7).
| Machinery and | ||||
|---|---|---|---|---|
| Plant and | plant in | Total fixed | ||
| Group fixed assets | machinery | Movables | progress | assets |
| Purchase cost 01.01.2021 | 3 017 597 | 146 941 | 0 | 3 164 539 |
| Additions | 14 157 477 | 2 626 181 | 5 206 364 | 16 783 659 |
| Transfer | 0 | 0 | 0 | 0 |
| Impairment | 0 | 0 | 0 | 0 |
| Skattefunn | 0 | 0 | -1 009 020 | 0 |
| Disposals | 0 | 0 | 0 | 0 |
| Acquisition cost 31.12.2021 | 17 175 076 | 2 773 123 | 4 197 344 | 24 145 542 |
| Accumulated depreciation 30.12.2021 | 1 166 270 | 165 610 | 0 | 1 331 879 |
| Net book value 31.12.2021 | 16 008 805 | 2 607 513 | 4 197 344 | 22 813 662 |
| Depreciation in the quarter | 411 885 | 99 861 | 0 | 511 746 |
| Expected useful life | 5 to 10 years | 5 to 15 years | ||
| Depreciation plan | Straight line | Straight line |
Additional information regarding fixed assets
The Technology center at Herøya comprises two containers located close to HQ of HydrogenPro i Porsgrunn. The additions in the quarter corresponds to 1,4 MNOK (5,5 MNOK YTD 2021). The container that HP aquired in 2020 have been subject for 5 years straight line depreciation during 2021. The additions made according to the in progress project, will be subject for depreciation when the lab is up running, estimated to 01.01.2022. The work to set up the technology center, have been subject for support from skattefunn during 2021. The purchase cost will hereby be reduced accoringly.
Additions per Q4 2021 are equivalent to 3,5 MNOK. These are costs incurred to establish the production plant facility in Aarhus. The depreciation corresponds to straight line and was effective from 01.10.2021.
The share capital of NOK 58 028 consist of 58 028 171 shares with nominal value of NOK 0,001 each. All shares are equal.
| Number of | |||
|---|---|---|---|
| List of (20) major shareholders as of 31 of December 2021 | shares | Ownership | |
| RICHARD ESPESETH | Board member | 11 424 125 | 19.7 % |
| TM HOLDING AS | CEO is Board member | 9 635 182 | 16.6 % |
| CLEARSTREAM BANKING S.A. | 6 280 423 | 10.8 % | |
| Mitsubishi heavy Industries Ltd | 5 381 165 | 9.3 % | |
| VIVIAN YANJIN CHEN ESPESETH | 3 173 571 | 5.5 % | |
| Citibank Europe plc | 1 600 000 | 2.8 % | |
| Avanza Bank AB | 1 523 731 | 2.6 % | |
| ENERN INVEST AS | 1 506 966 | 2.6 % | |
| TOR DANIELSEN | 1 373 571 | 2.4 % | |
| JAN FREDRIK GARVIK | 1 337 411 | 2.3 % | |
| DZ Privatbank S.A. | 1 322 981 | 2.3 % | |
| VERDIPAPIRFONDET DNB SMB | 1 174 894 | 2.0 % | |
| Nordnet Bank AB | 872 205 | 1.5 % | |
| VERDIPAPIRFONDET PARETO INVESTMENT | 841 000 | 1.4 % | |
| BARCLAYS CAPITAL SEC. LTD FIRM | 745 934 | 1.3 % | |
| Nordea Bank Abp | 727 783 | 1.3 % | |
| VPF NORGE SELEKTIV | 604 914 | 1.0 % | |
| Goldman Sachs & Co. LLC | 415 629 | 0.7 % | |
| LJM AS | 350 000 | 0.6 % | |
| The Bank of New York Mellon | 335 335 | 0.6 % | |
| Sum largest shareholders | 50 626 820 | 87.2 % | |
| Sum other shareholders | 7 401 351 | 12.8 % | |
| Total number of shares | 58 028 171 | 100 % | |
| Share | Share | Option | Other | ||
|---|---|---|---|---|---|
| Equity changes in the quarter | capital | premium | program | equity | Total |
| Equity 01.01.2021 | 57 169 | 542 170 113 | 9 098 130 | -35 648 245 | 515 677 167 |
| Net profit/loss per 31.12.2021 | -50 549 497 | -50 549 497 | |||
| Change in options | 17 702 010 | 17 702 010 | |||
| Captial increase | 859 | 33 971 154 | 33 972 013 | ||
| Other changes in equity | 176 177 | 176 177 | |||
| Foreign Currency Translation | 336 792 | 336 792 | |||
| Equity 31.12.2021 | 58 028 | 576 141 267 | 26 800 140 | -85 684 773 | 517 314 661 |
| 31.12.2021 | 30.09.2021 | H1 2021 | 31.12.2020 | |
|---|---|---|---|---|
| Long-term investment | 17 933 896 | 6 668 500 | 6 668 500 | 0 |
| Deposit | 495 393 | 486 036 | 598 456 | 0 |
| Convertible loan DG Fuels | 25 086 759 | 0 | 0 | 0 |
| Other receivables | 3 709 934 | 0 | 1 082 | 0 |
| Total other receivables | 47 225 981 | 7 154 536 | 7 268 038 | - |
Additional information regarding Other long term receivables:
Long-term investment:
17 November 2021 HydrogenPro reached an agreement with Tianjin HQY Hydrogen Machinery Co., Ltd. ("THM") to take control over the fabrication supply of electrolysers. HP have pre-paid approximately NOK 18 million as part of the NOK 48 million capital injection as of 31.12.2021. The pre-payments are classified as other long term receivables.
Convertible loan DG Fuels:
29 October 2021 HydrogenPro announced that it will join as a co-investor by financing DG Fuels, LLC's ("DG Fuels") sustainable aviation fuel (SAF) project.
HydrogenPro discloses alternative performance measures.
This is based on the group's experience that APMs are frequently used by analysts, investors and other parties as supplemental information.
The purpose of APMs is to provide an enhanced insight into the operations, financing and future prospect of the group. Management also uses these measures internally to drive performance in terms of monitoring operating performance and long-term target setting. APMs are adjusted IFRS measures that are defined, calculated and used in a consistent and transparent manner over the years and across the group where relevant.
Financial APMs should not be considered as a substitute for measures of performance in accordance with the Norwegian Accounting Standards.
HydrogenPro's financial APMs:
Ellen Hanetho Jarle Tautra
Chair of the Board Board member
(Electronically signed) (Electronically signed)
Board member Board member
(Electronically signed) (Electronically signed)
Kermit Nash
Board member
(Electronically signed)
Jarle Dragvik Richard Espeseth
Elling Nygaard CEO (Electronically signed)
BDO AS Leirvollen 21A, 3736 Skien Løkkebakken 24, 3770 Kragerø
To the board of HydrogenPro AS
We have reviewed the accompanying consolidated balance sheet of HydrogenPro AS as of December 31, 2021 and the related consolidated statements of income and cash flow statement for the threemonth period, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this interim financial information in accordance with Norwegian Accounting Act and accounting standards and practices generally accepted in Norway. Our responsibility is to express a conclusion on this interim financial information based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information does not give a true and fair view of the financial position of the entity as at December 31, 2021, and of its financial performance and its cash flows for the three month period then ended in accordance with Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.
BDO AS
Espen Åsulfsen State Authorized Public Accountant (signed electronically)
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HydrogenPro AS Hydrovegen 6 3933 Porsgrunn Norway www.hydrogen-pro.com
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