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HydrogenPro ASA
Quarterly Report • May 15, 2025
3627_rns_2025-05-15_579e621a-b478-4fd2-beba-22dfe421adfd.pdf
Quarterly Report
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First quarter 2025
HydrogenPro / First Quarter Report 2025
HydrogenPro ASA 1
| About HydrogenPro3 | |
|---|---|
| Highlights 4 | |
| Q1 2025 Highlights 4 | |
| Financials4 | |
| Q1 2025 Summary5 | |
| Developments during the quarter5 | |
| Outlook 6 | |
| Financials7 | |
| Income statement7 | |
| Net financial items8 | |
| Balance sheet8 | |
| Cash flow9 | |
| Condensed interim financial statements11 | |
| Consolidated statement of financial position12 | |
| Consolidated statement of changes in equity13 | |
| Consolidated statement of cash flows 13 | |
| Notes to the financial statements15 | |
| Note 1 – Organization and basis for preparation 15 | |
| Note 2 – Revenue from contracts with customers and segments 16 | |
| Note 3 – Intangible assets17 | |
| Note 4 – Property, plant, equipment and right-of-use asset18 | |
| Note 5 – Financial investment 18 | |
| Note 6 – Inventory18 | |
| Note 7 – Provisions 19 | |
| Note 8 – Overview of Group companies19 | |
| Note 9 – Trade Receivables 20 | |
| Note 10 – Change in Presentation of Income Statement20 | |
| Responsibility Statement 21 | |
| Alternative Performance Measures23 |
About HydrogenPro
HydrogenPro, established in 2013, specializes in pioneering green hydrogen technology solutions in partnership with global collaborators and suppliers.
HydrogenPro is an original equipment manufacturer with a high focus on R&D. Headquartered at Herøya, Norway, our proudest achievement lies in developing cutting-edge high-pressure alkaline electrolyzers, including proprietary electrode technology that enhances our global competitiveness. Designed for scalability with renewable energy inputs, our electrolyzers offer cost-effective solutions crucial for enhancing sectors like wind, solar, and other renewables in the energy transition. Green hydrogen, as a versatile energy carrier, plays a pivotal role in advancing the green energy shift. At HydrogenPro, we are dedicated to leading the green hydrogen industry forward with our innovative technology and expertise, driving towards a sustainable future.
Our team comprises highly skilled professionals, including key experts in global hydrogen technology. In addition to our operations in Norway, we operate R&D, sales, and manufacturing facilities across Denmark, Germany, the US and China.
We take great pride in our ESG strategy about creating a sustainable society with hydrogen. Our technology supplies high-performance and zero emission energy, to help you reach your production and sustainability goals all at the same time.
By powering innovation, we are energizing tomorrow. We are changing the world. For good.
Highlights
Q1 2025 Highlights
- █ Revenues for the quarter of NOK 22 million (compared to NOK 70 million in Q4 2024 and NOK 4 million in Q1 2024)
- █ EBITDA of NOK -50 million (compared to NOK -44 million in Q4 2024 and NOK -56 million in Q1 2024)
- █ Cash balance of NOK 165 million (compared to NOK 191 million end of Q4 2024 and NOK 185 million end of Q1 2024)
- █ HydrogenPro has received purchase order of USD 2.5 million.
NOK million
BACKLOG NOK million
EBITDA
Financials
Q1 2025 Summary
Developments during the quarter
Market development
The slowdown in large-scale green hydrogen projects that was observed in late 2024 has continued into 2025, with only early signs of renewed momentum towards the end of the first quarter of 2025. European stimulus programs and advancing projects are expected to drive further progress, supported by new subsidies and funding.
However, delays and cancellations of projects, particularly in the 50- 200 MW range, have been common. The primary reasons given are factors such as insufficient funding, rising costs, and infrastructure constraints, which are slowing market demand for offtake agreements.
The European Hydrogen Bank's (EHB) stricter funding requirements, especially around electrolyser equipment, may increase project costs, leading some developers to question the value of pursuing these funds. For HydrogenPro, these new standards will be fully met with only minor supply chain adjustments, supported by our ongoing assembly operations in Germany in partnership with ANDRITZ.
HydrogenPro's portfolio has seen delays but few cancellations, with the Power-to-X, ammonia, and hydrogen-as-fuel sectors remaining more active than refinery or sustainable aviation fuel projects.
In Europe, the Middle East, and India, professional players are entering the green hydrogen market, prompting HydrogenPro to strengthen partnerships and expand market presence.
In North America, while green hydrogen projections are generally positive, there is a shift towards low-carbon (blue) hydrogen due to its scalability. However, political uncertainties and recent tariffs on Chinese imports are hindering the U.S. market.
The global electrolyzer market faces overcapacity, requiring a disciplined strategy. HydrogenPro's focus will remain on technology testing, ongoing deliveries, and positioning for emerging opportunities, while preparing for potential low order volumes.
The previously announced full-scale test of HydrogenPro's newest technology, was together with Andritz recently completed at the Herøya site in Porsgrunn. The testing was successfully conducted involving both several planned tests including performance of the latest generation electrodes and learning how the electrolyzer responded to different operational modes including varying power input.
The electrolyzer showed confirmed performance improvements, compared to the test performed in 2023 and good gas quality for 40- 115% load. The specific energy consumption beginning of Life (BOL) verified improvements between Gen3 electrodes compared to Gen2 electrodes of > 12-14%. The variation in Gen3 electrodes will be both evened out and improved further based on a stable and consistent automated production quality control system in the new production line in A rhus.
The test run shows that electrode technology is a differentiator, putting HydrogenPro in the forefront in the electrolyzer industry. HydrogenPro will continue its R&D program of further improvements and optimization of its electrode technology in future generations.
ANDRITZ to order 100 MW electrolyzer unit from HydrogenPro for project in Germany
On 3 March 2025, ANDRITZ announced it has received an order for the authority engineering of a 100 MW green hydrogen plant to be built in Rostock, Germany. Subject to a final investment decision by the end customer, ANDRITZ expects to receive a notice to proceed with the full project scope.
Following receipt of the notice to proceed, ANDRITZ will deliver the plant on an EPC (Engineering, Procurement, and Construction) basis, utilizing HydrogenPro's pressurized alkaline electrolyzer technology for the electrolysis process.
HydrogenPro has received purchase order of USD 2.5 million
HydrogenPro has received a purchase order valued at USD 2.5 million for its high-pressure alkaline electrolyzers from an undisclosed customer. The order was confirmed on 27 March 2025, with manufacturing scheduled to begin in early May 2025.
Integrated Report 2024
HydrogenPro published its Integrated Report 2024 on 28 March 2025.
Annual and Extraordinary General Meetings
The Annual General Meeting (the "AGM") of HydrogenPro ASA was held on 30 April 2025. All items on the AGM agenda were approved by the general meeting as proposed, including the nominations committee's proposal regarding the election of members to the board of directors of the Company.
The new Board of Directors consists of Asta Stenhagen (Chair), Marianne Mithassel Aamodt, Hallvard Hasselknippe and Bjørn Hansen.
Haimeng Zhang was also elected by the nomination committee as a member of the Board of Directors for a period of two years. However, the election of Mr. Zhang shall not take effect until a capital increase is carried out in the company, whereby LONGi Hydrogen Technology (Xi'an) Co., Ltd. subscribes for 12,703,209 new shares.
Outlook
The hydrogen market is evolving as global dynamics shift, with delays in large-scale projects but increasing momentum for smaller, scalable ones. Europe is becoming a key driver of hydrogen adoption, spurred by policy incentives and a growing need for decarbonization. Although the U.S. was previously the focus of renewable energy expansion, Europe is now gaining attention, though building infrastructure and securing off-take agreements will take time.
Despite setbacks, the long-term outlook for green hydrogen remains positive. Delayed projects are moving towards Final Investment Decisions (FID), signaling renewed confidence. However, challenges such as funding, rising capital costs, and uncertainty around incentive programs still affect investment timelines.
HydrogenPro is well-positioned to capitalize on these trends through its technology, expertise, and strategic partnerships. Notable achievements include supplying electrolyzers for major projects like ACES and Salzgitter and completing successful full-scale testing of its new technology with ANDRITZ. The test showed improved performance and confirmed HydrogenPro's leading edge in electrolyzer technology.
HydrogenPro's global partnerships with ANDRITZ in Europe, Mitsubishi in the U.S., and LONGi in China position the company well across key regions. The company is also expanding into emerging markets in India and the Middle East. Its compliance with European regulations, particularly those of the European Hydrogen Bank, ensures eligibility for financial incentives.
However, rising trade barriers and protectionist policies may increase costs for European projects, potentially slowing market adoption. HydrogenPro advocates cost reductions to accelerate the energy transition rather than restrictive trade measures. Despite fluid market conditions, the company remains positioned to drive innovation and support the growth of the green hydrogen sector.
In our 2024 Annual Integrated Report, several key risks that could impact on the Company's business operations and financial performance were identified. As of this quarter, we confirm that these risks remain relevant and continue to be actively monitored and managed. Below is a summary of the primary risks faced by our Company:
Strategy and Business Risk: The hydrogen production market is still developing, with risks from market volatility, client expectations, and regulatory changes. On 27 September 2024, the European Hydrogen Bank introduced new regulations limiting projects to sourcing no more than 25% of electrolyzer stacks from China. Following further clarification, HydrogenPro will remain compliant with minor supply chain adjustments and continue assembly operations in Germany with our partner. However, these requirements are expected to increase costs for European projects, which poses a risk to business by potentially delaying new developments in the region.
Operational Risk: The Company is exposed to potential disruptions in its supply chain, especially given its reliance on suppliers in China.
Technology Risk: Main technology risks are non-competitive performance of our equipment and limited access to long-term performance data, with limited resources to conduct short-term testing. Until long-term data is validated at customers' sites, success relies on accurate estimates and manageable liabilities. Building trust requires competitive performance, timely delivery, and strong customer support and cooperation.
People Risk: As the Company matures, pressure on staff and leadership increases, with risks of key person and staff turnover. The company is actively working to improve the work environment and has seen significant improvements in reducing unwanted turnover.
Financing risk: the Company faces financial risks from fluctuations in commodity prices like steel and nickel, and counterparty risks. Ensuring sufficient liquidity, both short and long term, is essential to continue operations, pursuing contracts and strategic goals. Until the Company generates positive cash flow from business operations, the Company is dependent on external financing, and in the event that no capital is available, the Company will meet financial difficulties to continue operations.
Health, Environmental, and Safety Risk: The Company manages health, safety, and environmental risks at its various facilities, including those in China, Denmark, and Norway, which has led to significant improvements in work related incidents and reduced risks.
ESG Risks: The Company faces challenges in meeting environmental, social, and governance (ESG) expectations, which could lead to higher costs or reputational damage.
All of these risks are continuously monitored and mitigated through a wide range of measures, including, but not limited to actively assessing and pursuing financing alternatives, establishment and implementation of systems and procedures in all parts of the organization, approval matrices, quality control, HSE, diligent planning, information sharing, insurances, contractual terms, credit assessment etc.
Financials
Income statement
| Q1 2025 | Q4 2024 | Q1 2024 | NOK million | FY 2024 |
|---|---|---|---|---|
| 2 2 | 7 0 | 4 | Revenue from contracts with customers | 196 |
| 15 | 41 | -5 | Direct materials | 147 |
| 7 | 2 9 | 9 | Gross profit | 4 9 |
| 32 % | 41 % | 224 % | Gross margin | 25 % |
| 39 | 42 | 30 | Personnel expenses | 144 |
| 18 | 31 | 35 | Other operating expenses | 109 |
| -50 | -44 | -56 | EBITDA | -204 |
| 6 | 6 | 7 | Depreciation and amortization expenses | 23 |
| -55 | -50 | -63 | EBIT | -227 |
| -10 | 12 | 16 | Net financial income and expenses | 27 |
| -65 | -38 | -47 | Profit/(loss) before income tax | -200 |
| - | - | - | Income tax expense | - |
| -65 | -38 | -47 | Profit/(loss) | -200 |
HydrogenPro generated revenues of NOK 22 million during the first quarter of 2025 compared to NOK 70 million in the fourth quarter of 2024 and NOK 4 million in the first quarter of the previous year. The revenues in first quarter 2025 are mainly related to deliveries to the SALCOS project (100 MW) with ANDRITZ in Germany.
Direct material (includes raw materials and components for project delivery) for the quarter amounted to NOK 15 million compared to NOK 41 million in fourth quarter of 2024 and NOK -5 million in first quarter of 2024, the reduction is mainly a reflection of lower volume delivered in the SALCOs project in the quarter compared to the fourth quarter 2024.
The gross margin in Q1 2025 was impacted by NOK 8.2 million in ACES project costs, compared to NOK 17.1 million in Q4 2024. When adjusted for these ACES-related expenses, the gross margins for Q1 2025 and Q4 2024 stood at 69% and 66%, respectively.
Personnel expenses include all payroll and related expenses, including those of staff who work directly within project delivery. This amounted to NOK 39 million in the first quarter of 2025, compared to NOK 42 million in the fourth quarter of 2024, which reflects staff reduction in China and temporary layoffs in Europe. The comparable payroll amount was NOK 30 million for the first quarter of 2024.
Other operating expenses amounted to NOK 18 million in the first quarter of 2025, compared to NOK 31 million in the fourth quarter (and NOK 35 million for the first quarter of 2024). The NOK 13 million decrease from the fourth quarter of 2024 to the first quarter of 2025 is primarily driven by cost savings measures and lower project-related costs as project delivery activity in the first quarter of 2025 was lower than in the fourth quarter of 2024.
Overall, the planned NOK 40 million annual savings program is carried out in accordance with the plan.
EBITDA was NOK -50 million in the first quarter of 2025, compared to NOK -44 million in the fourth quarter of 2024. The lower EBITDA in the first quarter is mainly driven by a relatively lower gross margin, which was only partially offset by reduced personnel and operating expenses compared to the previous quarter.
Depreciation & amortization expenses were NOK 6 million in the first quarter, the same level as in the fourth quarter of 2024. This is the same level as the first quarter of 2024.
EBIT in the first quarter of 2025 amounted to NOK -55 million compared to NOK -50 million in the fourth quarter of 2024. The amount is NOK -63 million for the first quarter of 2024.
The net loss for the first quarter amounted to NOK -65 million, compared to a loss of NOK -38 million in the fourth quarter of 2024 and NOK -47 million in the first quarter of 2024. The increase in net loss is primarily due to a shift in net financial items, which showed a net gain of NOK 12 million in Q4 2024 but resulted in a net loss of NOK 10 million in the first quarter of 2025.
The order backlog amounted to NOK 318 million as of 31 March 2025, compared to NOK 305 million as of 31 December 2024 and NOK 423 million as of 31 March 2024. The increase from the previous quarter is mainly driven by new order intake, partially offset by order deliveries and the foreign exchange revaluation of contracts denominated in foreign currencies.
Net financial items
| Q1 2025 | Q4 2024 | Q1 2024 | NOK million | FY 2024 |
|---|---|---|---|---|
| -0 | -0 | -0 | Interest gain (+)/expense (-) | -1 |
| -10 | 12 | 16 | Net foreign exchange gain (+)/expense (-) | 26 |
| - | -2 | - | Impairment of financial assets | -2 |
| -0 | 2 | 0 | Other finance income (+)/expense (-) | 4 |
| -10 | 1 2 | 1 6 | Net financial items | 2 7 |
Net financial items amounted to a loss of NOK 10 million in the first quarter 2025 and a gain of NOK 12 million in the fourth quarter of 2024. The amount for the first quarter of 2024 was a gain of NOK 16 million. The loss in financial items in the first quarter of 2025 is primarily attributable to a net loss from the translation of assets and liabilities denominated in foreign currencies, mainly USD.
Balance sheet
| NOK million | 31 March 2025 | 31 Dec 2024 | 31 March 2024 | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Intangible assets | 52 | 56 | 60 | |||
| Property, plant and equipment | 105 | 89 | 65 | |||
| Right of use assets and financial investments | 51 | 55 | 55 | |||
| Total non-current assets | 208 | 200 | 180 | |||
| Current operating assets | 190 | 190 | 208 | |||
| Cash and cash equivalents | 165 | 191 | 185 | |||
| Total current assets | 355 | 382 | 393 | |||
| Total Assets | 563 | 582 | 573 | |||
| Equity and liabilities | ||||||
| Total equity | 348 | 348 | 415 | |||
| Total non-current liabilities | 21 | 22 | 20 | |||
| Total current liabilities | 194 | 211 | 139 | |||
| Total liabilities | 214 | 233 | 158 | |||
| Total equity and liabilities | 563 | 582 | 573 |
As of 31 March 2025, total assets were NOK 563 million, a reduction from NOK 582 million in the previous quarter and from NOK 573 million a year earlier.
Non-current assets increased to NOK 208 million at the end of the quarter, up from NOK 200 million in the previous quarter. This includes a NOK 4 million reduction in intangible assets, of which NOK 2.4 million is attributable to foreign currency revaluation. Financial assets declined from NOK 56 million to NOK 52 million, while plant, machinery, and equipment increased significantly to NOK 105 million from NOK 89 million. The increase is due to investments the expansion of manufacturing capacity in Aarhus and the test facility in Herøya.
Current assets decreased to NOK 355 million from NOK 382 million in the previous quarter, with current operating assets remaining stable at NOK 190 million in Q1 2025 and Q4 2024.
Equity totaled NOK 348 million at the end of the first quarter of 2025, which is same level as the fourth quarter 2024. While the equity injection has contributed to a positive equity of NOK 70 million during the first quarter of 2025, this is completely offset by a total comprehensive loss of NOK 70 million in the first quarter of 2025.
The equity ratio for the first quarter of 61.9%, slightly up from 59.9% in the fourth quarter of 2024. Equity ratio for the first quarter of 2024 was 72.4%.
Total liabilities decreased to NOK 214 million, almost exclusively due to a decrease in current liabilities to NOK 194 million from NOK 211 million in the previous quarter. Current liabilities include trade payables, other short-term obligations, and provisions for warranty related to project activity (see Note 7).
Cash flows
| Q1 2025 | Q4 2024 | Q1 2024 | NOK million | FY 2024 |
|---|---|---|---|---|
| 191 | 188 | 161 | Cash balance start of period | 161 |
| -50 | -44 | -56 | EBITDA | -204 |
| -23 | 58 | 81 | Changes in NWC & other | 182 |
| -22 | -9 | -0 | Investments | -25 |
| 68 | -1 | -0 | Financing | 78 |
| -26 | 4 | 2 4 | Total changes in cash | 3 1 |
| 165 | 191 | 185 | Cash balance end of period | 191 |
Net change in cash position during the first quarter 2025 was NOK -26 million (decrease in cash position) compared to NOK 4 million (increase in cash position) in the fourth quarter of 2024.
During this first quarter, net cash flow from investing activities was NOK -22 million, compared to NOK -9 million in the fourth quarter 2024. These investments primarily support the expansion of manufacturing capacity in Aarhus and the test facility in Herøya. The corresponding amount for the first quarter of 2024 is NOK -0 million, indicating no material investing activities.
Net cash flow from financing activities in the quarter was NOK 68 million compared to NOK -1 million in the fourth quarter 2024. The positive financing in the first quarter of 2025 is primarily linked to equity injection of NOK 70 million through a private placement of new shares from HydrogenPro's existing shareholders, ANDRITZ AG and Mitsubishi Heavy Industries (MHI). The corresponding amount for the fourth quarter of 2023 is NOK -0 million, indicating no material investing activities.
Additionally, the company has entered into an investment agreement with LONGi Hydrogen Technology Co., Ltd., involving a conditional equity investment of approximately NOK 70 million, and a cooperation agreement. The capital injection from LONGi is expected to be registered and paid for in the second quarter of 2025.
Financial statements
HydrogenPro / First Quarter Report 2025
HydrogenPro ASA 10
Condensed interim financial statements Condensed Consolidated statement of comprehensive income (unaudited)
| Q1 2025 | Q4 2024 | Q1 20242 | NOK '000 | Notes | FY 2024 |
|---|---|---|---|---|---|
| Operating income and operating expenses | |||||
| 22 396 | 70 053 | 4 096 | Revenue from contracts with customers | 2 | 195 688 |
| 22 396 | 70 053 | 4 096 | Total revenue | 195 688 | |
| 15 227 | 41 102 | -5 069 | Direct materials | 146 967 | |
| 39 245 | 41 889 | 29 998 | Personnel expenses | 144 005 | |
| 17 769 | 31 061 | 35 446 | Other operating expenses | 108 900 | |
| -49 846 | -43 999 | -56 279 | EBITDA | -204 184 | |
| 5 527 | 5 535 | 6 659 | Depreciation and amortization expense | 3.4 | 23 265 |
| -55 373 | -49 534 | -62 938 | EBIT | -227 449 | |
| -9 602 | 11 834 | 16 161 | Net foreign exchange gain (+)/loss (-) | 26 122 | |
| 928 | 2 228 | 582 | Financial income | 4 863 | |
| -1 306 | -2 470 | -622 | Financial expenses | -3 673 | |
| -9 981 | 11 591 | 16 121 | Net financial income and expenses | 27 312 | |
| -65 354 | -37 942 | -46 817 | Profit / (loss) before income tax | -200 138 | |
| - | - | - | Income tax expense | - | |
| -65 354 | -37 942 | -46 817 | Profit / (loss) for the period | -200 138 | |
| Other comprehensive income: | |||||
| Items that may be reclassified to profit or loss: | |||||
| -4 824 | 346 | 6 083 | Exchange difference on translation of foreign operations |
7 027 | |
| -4 824 | 346 | 6 083 | Net Other comprehensive income | 7 027 | |
| -70 178 | -37 596 | -40 734 | Total comprehensive profit / (loss) for the period | -193 109 | |
| Total comprehensive profit / (loss) for the period attributable to: |
|||||
| -68 987 | -36 444 | -38 167 | Equity holders of the parent company | -189 033 | |
| -1 191 | -1 152 | -2 567 | Non-controlling interest | -4 076 | |
| Earnings per share (in NOK) | |||||
| -0.79 | -0.54 | -0.63 | Basic and diluted earnings per ordinary share 1 | -2.87 |
1Based on average 81.13 million shares (68.28 million for 2024) outstanding for the purpose of earnings per share
2See Note 10 Change of Presentation of Income Statement
Condensed Consolidated statement of financial position (unaudited)
| NOK '000 | Note | 31 March 2025 | 31 Dec 2024 | 31 March 2024 |
|---|---|---|---|---|
| Assets | ||||
| Intangible assets | 3 | 52 139 | 56 295 | 60 259 |
| Property, plant and equipment | 4 | 104 528 | 88 811 | 64 971 |
| Right of use assets | 4 | 16 148 | 17 283 | 17 738 |
| Non-current tax asset | - | - | - | |
| Financial assets | 5 | 31 659 | 34 060 | 32 403 |
| Other receivables | 3 614 | 3 500 | 4 839 | |
| Total non-current assets | 208 088 | 199 949 | 180 210 | |
| Current assets | ||||
| Inventories | 6 | 28 895 | 27 509 | 22 824 |
| Trade receivables | 9 | 107 858 | 115 292 | 97 417 |
| Contract assets | 2 | 21 729 | 15 272 | 51 114 |
| Other receivables | 31 326 | 32 405 | 36 635 | |
| Cash and bank deposits | 164 981 | 191 216 | 184 936 | |
| Total current assets | 354 790 | 381 694 | 392 925 | |
| Total assets | 562 878 | 581 643 | 573 136 | |
| Equity | ||||
| Share capital | 1 656 845 471 |
1 402 775 875 |
1 270 693 304 |
|
| Share premium account | 42 997 | 42 596 | 39 306 | |
| Other equity contributed Other equity |
-544 439 | -480 275 | -328 468 | |
| Currency translation difference | 1 579 | 6 402 | 5 458 | |
| Equity attributable to HydrogenPro's shareholders | 347 264 | 346 000 | 410 870 | |
| Non-controlling interest | 1 171 | 2 362 | 3 869 | |
| Total equity | 348 435 | 348 362 | 414 739 | |
| Non-current lease liabilities | 11 508 | 12 305 | 13 100 | |
| Non-current provisions | 7 | 9 019 | 9 538 | 6 756 |
| Total non-current liabilities | 20 527 | 21 843 | 19 856 | |
| Current liabilities | ||||
| Current lease liabilities | 5 386 | 5 651 | 4 821 | |
| Trade creditors | 39 859 | 59 361 | 20 668 | |
| Contract liabilities | 2 | 3 355 | 916 | 44 041 |
| Public duties payable | 6 029 | 8 558 | 3 436 | |
| Other short term liabilities | 7 | 139 286 | 136 952 | 65 575 |
| Total current liabilities | 193 915 | 211 438 | 138 541 | |
| Total liabilities | 214 442 | 233 281 | 158 397 | |
| Total equity and liabilities | 562 877 | 581 643 | 573 136 |
The Board of Directors and Chief Executive Officer Hydrogen Pro ASA Oslo, 14 May 2025
Porsgrunn/Oslo, 14 May 2025
(All signatures electronically signed)
| Asta Stenhagen | Marianne Mithassel Aamodt | Hallvard Hasselknippe | Bjørn Hansen | Jarle Dragvik |
|---|---|---|---|---|
| Chair of the Board | Board member | Board member | Board member | CEO |
Condensed Consolidated statement of changes in equity (unaudited)
| NOK '000 | Share capital |
Share premium account |
Other equity contrib. |
Currency translat. Difference |
Other equity | Equity attrib. to share holders |
Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|---|
| Equity as at 1 Jan 2024 | 1 266 | 691 796 | 38 558 | -625 | -284 221 | 446 774 | 6 438 | 453 212 |
| Total comprehensive income Issue of shares Private placement Cost of share-based payment |
136 | 1 508 82 571 |
4 038 | 7 027 | -196 060 6 |
-189 034 1 644 82 571 4 044 |
-4 076 | -193 109 1 644 82 571 4 044 |
| Equity as at 31 Dec 2024 | 1 402 | 775 875 | 42 596 | 6 402 | -480 275 | 346 000 | 2 362 | 348 362 |
| Equity as at 1 Jan 2025 | 1 402 | 775 875 | 42 596 | 6 402 | -480 275 | 346 000 | 2 362 | 348 362 |
| Total comprehensive income Private placement Cost of share-based payment |
254 | 69 596 | 401 | -4 822 | -64 164 | -68 987 69 850 401 |
-1 191 | -70 178 69 850 401 |
| Equity as at 31 March 2025 | 1 656 | 845 471 | 42 997 | 1 579 | -544 439 | 347 264 | 1 171 | 348 435 |
Condensed Consolidated statement of cash flows (unaudited)
| Q1 2025 | Q4 2024 | Q1 2024 | NOK '000 | Notes | FY 2024 |
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| -65 354 | -37 942 | -46 817 | Profit / (loss) before income tax | -200 137 | |
| 5 527 | 5 894 | 6 659 | Depreciation and amortization expense | 3.4 | 23 265 |
| 218 | 220 | 313 | Interest expensed on lease liabilities | 1 036 | |
| 25 | 1 416 | 3 817 | Loss on disposals on property, plant and equipment | 5 549 | |
| 401 | 997 | 749 | Option cost no cash effect | 4 391 | |
| -1 735 | -3 332 | 96 068 | Change in trade receivable and contract assets | 119 870 | |
| -1 387 | 3 558 | -8 270 | Change in inventory | -12 954 | |
| -17 063 | 11 901 | -24 101 | Change in trade payable and contract liabilities | -28 533 | |
| - | 1 839 | - | Impairment of financial assets | 1 839 | |
| 802 | -14 885 | -4 106 | Effect of foreign currency translation | -14 169 | |
| 5 931 | 44 224 | 456 | Change in other accruals | 77 987 | |
| -72 635 | 13 889 | 24 768 | Net cash flows from operating activities | -21 856 | |
| Cash flows from investing activities | |||||
| -21 999 | -8 888 | -276 | Purchases of tangible assets | 4 | -25 124 |
| -21 999 | -8 888 | -276 | Net cash flows from investing activities | -25 124 | |
| Cash flows from financing activities | |||||
| -1 233 | -1 248 | -1 287 | Principal Repayments of lease liabilities | -5 514 | |
| -218 | -220 | -313 | Interest paid on lease liabilities | -1 036 | |
| 69 850 | - | 1 512 | Proceeds from Equity Issue | 84 214 | |
| 68 399 | -1 468 | -88 | Net cash flows from financing activities | 77 664 | |
| 191 216 | 187 682 | 160 531 | Cash balance start of period | 160 531 | |
| -26 234 | 3 533 | 24 405 | Net change in cash | 30 684 | |
| 164 981 | 191 216 | 184 936 | Cash balance end of period | 191 216 |
Notes to the financial statements
Note 1 – Organization and basis for preparation
Corporate information
HydrogenPro ASA ("the Company") is a public limited company, incorporated in Norway, headquartered in Herøya, Norway and listed on Oslo Stock Exchange. Address headquarters: Hydrovegen 55, 3936 Porsgrunn, Norway.
The Company was established in 2013 by individuals with background from the electrolysis industry which was established in Telemark, Norway. HydrogenPro comprises an experienced engineering team of leading industry experts, drawing upon unparalleled experience and expertise within the hydrogen and renewable sectors. By combining indepth knowledge with innovative design, the company continuously aspires to pioneer game-changing ideas and solutions to realize and maximize new opportunities in a smarter, sustainable, hydrogen powered future. HydrogenPro designs and supplies customized hydrogen plants in cooperation with global partners and suppliers, all ISO 9001, ISO 45001 and ISO 14001 certified. The core product is the alkaline high-pressure electrolyzer.
HydrogenPro is listed on Oslo Stock Exchange under the ticker "HYPRO".
Basis for preparation
The first quarter statements and the have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34). The quarterly financial information does not include all information and disclosures required in the annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS).
The accounting policies applied in the preparation of the quarterly financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2024.
Significant accounting judgements, estimates and assumptions
The preparation of the consolidated financial statements in accordance with IFRS and applying the chosen accounting policies requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and the underlying assumptions are reviewed on an ongoing basis.
The accounting policies applied by management which include a significant degree of estimates and assumptions or judgments that may have the most significant effect on the amounts recognized in the financial statements, are summarized below:
- █ Revenue recognition from contracts with customers
- █ Provision for warranty
- █ Estimating fair value for share-based payments transactions
- █ Impairment of goodwill and intangible assets
Refer to the annual report of 2024 for more details related to key "judgement" and estimations.
The Interim financial information has not been subject to audit or review.
Note 2 – Revenue from contracts with customers and segments
Geographical region
| Q1 2025 | Q4 2024 | Q1 2024 | NOK '000 | FY 2024 |
|---|---|---|---|---|
| Geographical region | ||||
| 20 075 | 63 966 | 12 510 | Europe | 196 855 |
| 2 387 | 4 019 | -9 570 | America | -5 588 |
| -66 | 2 069 | 1 157 | Asia Pacific | 4 421 |
| 22 396 | 70 053 | 4 096 | Total revenue | 195 688 |
The Group generates revenue primarily from the sale of hydrogen electrolyzer systems, which are delivered either as stand-alone units or as part of EPC (Engineering, Procurement, and Construction) turnkey solutions. The Group also enters into long-term service agreements and provides front-end engineering and design (FEED) studies. Revenue is recognized in accordance with IFRS 15, either overtime or at a point in time, depending on the specific contract terms and the timing of the transfer of control to the customer.
Performance obligations include:
- o Electrolyzer Sales (recognized at delivery or site acceptance),
- o EPC Contracts (recognized over time based on project progress),
- o FEED Services (recognized over time using the cost-to-cost method),
- o Long-Term Service Agreements (recognized over time as services are provided).
Variable consideration, such as performance incentives and liquidated damages, is estimated conservatively to prevent significant revenue reversals.
Liquidated Damages (LDs)
Liquidated damages are penalties for project delays or missed milestones. The transaction price accounts for the maximum potential LDs, with any additional amounts treated as variable consideration. Revenue from LDs is recognized only when it is highly probable there will be no significant reversal. The assessment is based on historical data, contract terms, and ongoing negotiations.
The assessment of variable consideration is judgmental and based on factors such as historical data, contractual obligations, client relationships, and the status of ongoing negotiations.
The Group's revenue and expenses are not allocated to different segments, and this is consistent with the internal reporting provided to the chief operating decision maker.
Timing of revenue recognition
| Q1 2025 | Q4 2024 | Q1 2024 | NOK '000 | FY 2024 |
|---|---|---|---|---|
| Timing of revenue recognition | ||||
| 2 336 | 4 826 | -7 001 | Revenue recognized over time | -744 |
| 20 060 | 65 227 | 11 097 | Revenue recognized at point - in - time | 196 432 |
| 22 396 | 70 053 | 4 096 | Total revenue | 195 688 |
In 2024, negative revenue recognition was impacted by the reversal of NOK 21 million in revenue recognized in the first quarter, related to a customer contract. The project adheres to the percentage of completion (POC) accounting principle, where revenue recognition is based on incurred versus estimated costs.
The reversal reflects additional estimated costs associated with the replacement of delivered components, resulting in a lower POC.
Note 2 – Revenue from contracts with customers and segments- continued
Major Products and Services
| Q1 2025 | Q4 2024 | Q1 2024 | NOK '000 | FY 2024 |
|---|---|---|---|---|
| 19 617 | 63 986 | 9 993 | Revenue from sale of electrolyzer system | 192 799 |
| 2 387 | 4 849 | -10 823 | Revenue from EPC Contracts | -6 930 |
| -51 | -23 | 3 821 | Revenue from sale of Feed and case-studies | 6 186 |
| 442 | 1 242 | 1 105 | Other revenue | 3 633 |
| 22 396 | 70 053 | 4 096 | Total revenue | 195 688 |
The group has not recognized revenue from Long-Term Service Agreements Contracts for far in 2025 or 2024.
Contract Assets and Liabilities
| NOK '000 | 31 March 2025 | 31 Dec 2024 | 31 March 2024 |
|---|---|---|---|
| Contract assets | |||
| Opening balance 1 January | 15 272 | 65 836 | 65 836 |
| Transfers from contract assets recognised at the beginning of the period to receivable |
-15 054 | -51 441 | -9 591 |
| Impairment of contract assets | - | -1 380 | 0 |
| Increase due to measure of progress in the period | 21 511 | 2 258 | -5 131 |
| Balance end of period | 21 729 | 15 272 | 51 114 |
| Contract liabilities | |||
| Opening balance 1 January | 917 | 49 641 | 49 641 |
| Revenue from amounts included in contract liabilities at the beginning of the period |
-917 | -49 641 | -5 652 |
| Billing and advances received not recognised as revenue in the period | 3 355 | 917 | 52 |
| Balance end of period | 3 355 | 917 | 44 041 |
Note 3 – Intangible assets
| NOK '000 | Technology | Patent and licenses |
Goodwill | Total |
|---|---|---|---|---|
| Purchase cost 1 Jan 2025 | 45 940 | 11 742 | 24 034 | 81 716 |
| Foreign exchange differences | -1 510 | - | -1 551 | -3 062 |
| Purchase cost 31 March 2025 | 44 430 | 11 742 | 22 482 | 78 654 |
| Accumulated amortization 1 Jan 2025 | 18 377 | 7 045 | - | 25 422 |
| Amortization year to date 2025 | 1 134 | 587 | - | 1 721 |
| Foreign exchange differences | -627 | -627 | ||
| Net book value 31 March 2025 | 25 546 | 4 110 | 22 482 | 52 139 |
The Group's Intangible assets comprise technology following the acquisition of HydrogenPro Aps in Denmark (formerly; Advance Surface Plating ApS), development costs related to development of structured Invitation to Bid (ITB) documentation, aiding the procurement of electrolyzer components and goodwill following the acquisition of 75 percent of the shares of HydrogenPro (Tianjin) CO Ltd.
No additions of intangible assets have been recognized as for the first quarter of 2025 (and the year 2024).
Note 4 – Property, plant, equipment and right-of-use asset
Property, plant and equipment and right of use assets mainly relate to the production plant facility in Tianjin China, and Aarhus, Denmark, the Technology Centre at Herøya, Norway and office facilities in Norway, Denmark and China.
Total additions to tangible assets in the first quarter amounted to NOK 22.9 million. The additions for the quarter are mainly related to the work in progress in Denmark in connection with the expansion of the manufacturing capacity and investments in the test center in Herøya in connection with the Stack One Testing.
Depreciation of tangible assets for the year to date was NOK 2.0 million.
| NOK '000 | Plant and machinery | Movables | Machinery and plant in progress |
Right-of-use assets | Total |
|---|---|---|---|---|---|
| Purchase cost 1 Jan 2025 | 75 972 | 6 399 | 29 392 | 27 534 | 139 297 |
| Additions | 794 | 3 | 21 202 | 891 | 22 889 |
| Disposals | -47 | - | - | - | -47 |
| Foreign exchange differences | -3 893 | -251 | -1 060 | -1 146 | -6 350 |
| Purchase cost 31 March 2025 | 72 825 | 6 151 | 49 533 | 27 279 | 155 789 |
| Accumulated depreciation 1 Jan 2025 | 19 651 | 2 780 | - | 10 251 | 32 682 |
| Depreciation year to date 2025 | 1 742 | 305 | - | 1 364 | 3 411 |
| Disposals | -23 | - | - | - | -23 |
| Foreign exchange differences | -347 | -128 | - | -483 | -958 |
| Net book value 31 March 2025 | 51 801 | 3 193 | 49 533 | 16 148 | 120 675 |
Note 5 – Financial investment
| NOK '000 | 31 March 2025 | 31 Dec 2024 | 31 March 2024 |
|---|---|---|---|
| Opening balance 1 January | 34 060 | 30 517 | 30 517 |
| Foreign currency translation effect | -2 402 | 3 543 | 1 886 |
| Convertible receivables end of period | 31 659 | 34 060 | 32 403 |
HydrogenPro has joined as a co-investor by financing DG Fuels LLC's ("DG Fuels") sustainable aviation fuel ("SAF") project. The convertible receivable is measured at fair value through profit or loss based on level 3 in the fair value hierarchy.
Level 3 has been defined as follows:
█ Value measurements of assets or liabilities that are not based on observed market values.
At the end of the first quarter of 2025, the Company determined that the acquisition cost remains the best estimate of the fair value for the DG Fuels Note.
Note 6 – Inventory
| NOK '000 | 31 March 2025 | 31 Dec 2024 | 31 March 2024 |
|---|---|---|---|
| Inventory | |||
| Finished goods | 6 929 | 6 346 | 6 804 |
| Raw material | 6 122 | 15 605 | 1 832 |
| Work in progress | 15 844 | 5 557 | 14 188 |
| Carrying amount | 28 895 | 27 509 | 22 824 |
As of 31 March 2025, inventories comprise purchased raw materials, work in progress (semi-finished goods) and finished goods. The raw materials include parts that are integrated into the final finished goods. Work in progress represents partially completed products awaiting further processing. Finished goods are complete products that are ready for sale but for which control remains with the Group until the product is sold or transferred.
Obsolescence assessed for inventories was NOK 0 million as of 31 March 2025, 31 December 2024 and as of 31 March 2024.
Note 7 – Provisions and Other Current Liabilities
| NOK '000 | Warranty Provision |
Other provisions |
31 March 2025 | 31 Dec 2024 |
|---|---|---|---|---|
| Provisions | ||||
| Opening balance 1 January | 23 846 | 81 728 | 105 575 | 42 280 |
| Additions | 157 | 7 358 | 7 515 | 59 557 |
| Foreign exchange differences | -1 454 | -5 681 | -7 135 | 3 738 |
| Warranties and other provisions end of period | 22 549 | 83 405 | 105 955 | 105 575 |
| Current provisions | 13 530 | 83 405 | 96 935 | 96 036 |
| Non-current provisions | 9 019 | - | 9 019 | 9 538 |
| Other current liabilites | - | 42 351 | 42 351 | 40 916 |
| Provisions and other current liabilities end of period | 22 549 | 125 756 | 148 305 | 146 490 |
Estimated warranty obligations are recognized in the same period as the related revenue, or when a project is installed or commissioned. These warranties are based on contractual commitments and liabilities under applicable laws.
The Group's warranties provide assurance that the electrolyzers are free from defects and meet the required specifications. They are accounted for under IAS 37 as a provision and recorded as an operating expense.
The warranty provision is typically based on historical experience and often constitutes a percentage of revenue from contracts with customers.
Due to limited historical data, the Group considers available industry information, documented product failure rates, and expected material and labor costs for the project to make its estimates.
Other provisions include provisions for settlements and claims.
Note 8 – Overview of Group companies
| Ownership interest | Voting power | |||||||
|---|---|---|---|---|---|---|---|---|
| Company | Country | Main operations | 31 March 2025 31 Dec 2024 31 March 2024 31 March 2025 31 Dec 2024 31 March 2024 | |||||
| HydrogenPro ApS | Denmark | Technology industries | 100 % | 100 % | 100 % | 100 % | 100 % | 100 % |
| HydrogenPro Tianjin CO Ltd | China | Technology industries | 75 % | 75 % | 75 % | 75 % | 75 % | 75 % |
| HydrogenPro Shanghai CO Ltd | China | Technology industries | 100 % | 100 % | 100 % | 100 % | 100 % | 100 % |
| Kvina Energy AS | Norway | Technology industries | 50 % | 50 % | 50 % | 50 % | 50 % | 50 % |
| HydrogenPro France* | France | Technology industries | 100 % | 100 % | 100 % | 100 % | 100 % | 100 % |
| HydrogenPro Inc | United States of America | Technology industries | 100 % | 100 % | 100 % | 100 % | 100 % | 100 % |
| HydrogenPro GmbH | Germany | Technology industries | 100 % | 100 % | 100 % | 100 % | 100 % | 100 % |
*The company is excluded from consolidation as this is a company without significant assets or operating assets that provide services to the group that would have been consolidated.
Note 9 – Trade Receivables
The following table provides information about the exposure to credit risk and expected credit losses for trade receivables from individual customers at the end of the fourth quarter.
| NOK '000 | Gross carrying Amount | Provision for bad debt |
|---|---|---|
| Current (not past due) | 3 190 | |
| 1-120 days past due | - | |
| 121-260 days past due | 10 154 | |
| 260-365 days past due | 425 | |
| More than one year past due | 94 089 | |
| Carrying value as of 31 March 2025 | 107 858 | - |
About 97% of the trade receivables past due are related to one customer. HydrogenPro does not consider the receivable as uncertain despite its age, as it is due from a counterparty with a strong financial position, and it is expected that, subject to contractual discussions in connection with project completion, the entire amount will be paid.
Note 10 – Change of Presentation of Income Statement
| NOK million | Q1 2024 |
|---|---|
| Cost of Goods Sold (COGS) | 4 |
| Personnel and Opex included in COGS | -10 |
| Direct materials | - 5 |
| Personnel expenses | 2 8 |
| Personnel related to COGS | 2 |
| Personnel expenses | 3 0 |
| Other operating expenses | 2 8 |
| Opex related to COGS | 8 |
| Other operating expenses | 3 5 |
In connection with the third quarter of the 2024 report, the presentation of the Income Statement was modified. Prior to that, Gross Profit was presented as Total Revenue less Cost of Goods Sold (COGS), which included personnel and other operating expenses. Starting from the third quarter of 2024, Gross Profit is now calculated as Total Revenue less Direct Material Costs only. Personnel expenses and other operating costs directly related to project deliveries are no longer included in the Gross Profit calculation and are instead reported separately below Gross Profit. This change provides a clearer view of the direct material margin.
Prior period figures have been reclassified to ensure consistency and comparability. The periods that are relevant for comparison in the first quarter report are the figures reported in the first quarter of 2024.
This reclassification does not impact on operating profit, net income, or other key financial results.
Responsibility Statement
We confirm, to the best of our knowledge, that the condensed set of interim consolidated financial statements at 31 March 2025 and for the threemonth period 1 January to 31 March 2025 have been prepared in accordance with IAS 34 "Interim Financial Reporting" and give a true and fair view of the Group's assets, liabilities, financial position and the result for the period viewed in their entirety, and that the first quarter report in accordance with the Norwegian Securities Trading Act section 5-6 fourth paragraph includes a fair review of any significant events that arose during the three-month period and their effect on the first quarter financial report, any significant related parties transactions, and a description of the principal risks and uncertainties.
Porsgrunn/Oslo, 14 May 2025
(All signatures electronically signed)
| Board member Asta Stenhagen |
CEO Marianne Mithassel Aamodt |
Hallvard Hasselknippe | Bjørn Hansen | Jarle Dragvik |
|---|---|---|---|---|
| Chair of the Board | Board member | Board member | Board member | CEO |
Alternative Performance Measures
HydrogenPro / First Quarter Report 2025
HydrogenPro ASA 22
Alternative Performance Measures
HydrogenPro discloses alternative performance measures (APMS).
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 prospects 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 IFRS.
HydrogenPro's financial APMs:
- █ Gross profit is defined as gross profit (Revenues Direct materials) divided by revenues in percentage.
- █ EBITDA is defined as earnings before interest, tax, depreciation, amortisation and impairment, corresponding to operating profit/(loss) plus depreciation, amortisation and impairment.
- █ Order Intake is defined as firm purchase order with agreed price, volume, timing, term and conditions entered within a given period. The order intake includes both contracts and change order. For service contracts and contracts with uncertain transaction prices, the order intake is based on estimated revenue. The measure does not include potential change order.
- █ Order Backlog is defined as a firm purchase order with agreed price, volume, timing, term and condition and where revenue is yet to be recognized. The backlog includes both contracts and change orders. For service contracts and contracts with uncertain transaction prices, the backlog is based on estimated revenue. The measure does not include potential change order.
APMs
| Q1 2025 | Q1 2024 | NOK '000 | FY 2024 |
|---|---|---|---|
| 22 | 4 | Revenue from contracts with customers | 196 |
| 15 | -5 | Direct materials | 147 |
| 7 | 9 | Gross profit/(loss) | 49 |
| 7 | 9 | Gross profit/(loss) | 49 |
| 22 | 4 | Revenue from contracts with customers | 196 |
| 32 % | 224 % | Gross profit margin | 25 % |
| 7 | 9 | Gross profit/(loss) | 49 |
| 39 | 30 | Personnel expenses | 144 |
| 18 | 35 | Other operating expenses | 109 |
| -50 | -56 | EBITDA | -204 |
| -50 | -56 | EBITDA | -204 |
| 6 | 7 | Depreciation and amortization expenses | 23 |
| -55 | -63 | Operating profit/(loss) (EBIT) | -227 |
| 305 | 423 | Order backlog start of period | 423 |
|---|---|---|---|
| 40 | 0 | Order intake | 38 |
| -22 | -3 | Revenue fro,m projects contracts with customers | -192 |
| -5 | 25 | Revaluation | 36 |
| 318 | 445 | Order backlog end of period | 305 |
HydrogenPro / First Quarter Report 2025
www.hydrogenpro.com
HydrogenPro ASA 24