SLINGERLANDS, N.Y. - Plug Power Inc. (NASDAQ: NASDAQ:PLUG), a company specializing in hydrogen fuel cell systems, announced the creation of a new equipment leasing platform with an initial target of over $150 million. This move is aimed at facilitating the company's access to capital by leveraging its hydrogen-related equipment assets.
In the initial phase of this platform, Plug Power has completed sale and leaseback transactions worth approximately $44 million with GTL Leasing, a portfolio company of Antin Infrastructure Partners. These transactions involve various assets including trailers and storage tanks for hydrogen transport and storage, allowing Plug Power to maintain access to essential equipment while bolstering its financial position.
The proceeds from these transactions are intended to be reinvested into Plug Power's core operations, with a focus on long-term growth and expansion initiatives. This strategic partnership with GTL Leasing is seen as a significant step in securing immediate capital and paving the way for additional funding in the near future.
GTL Leasing's CEO Michael Koonce expressed enthusiasm for the partnership, highlighting the stable revenue stream and potential for further lease opportunities. Antin Infrastructure Partners, which invested in GTL earlier this year, remarked on the diversification and strengthening of GTL’s equipment portfolio through these transactions.
Goldman Sachs & Co. LLC served as the financial advisor to Plug Power for these transactions.
Plug Power has a history of pioneering hydrogen fuel cell technology, with over 69,000 fuel cell systems deployed and more than 250 fueling stations established. The company is actively working towards creating a green hydrogen ecosystem across North America and Europe, with plans for green hydrogen production plants aiming for operation by the end of 2028.
This platform is expected to support Plug Power’s commitment to strategic initiatives and operational capabilities, offering partners like GTL a valuable investment opportunity and a role in the expanding green hydrogen economy.
The information presented in this article is based on a press release statement from Plug Power Inc.
In other recent news, Plug Power has secured a significant electrolyzer order from a joint venture between energy giants bp and Iberdrola (OTC:IBDRY), marking the start of a long-term partnership. The company will supply 25 megawatts of proton exchange membrane (PEM) electrolyzer systems, expected to cut 23,000 tons of CO2 emissions annually. In another development, Plug Power inked a deal to support the H2DRIVEN project in Portugal, aiming to produce green methanol for heavy industry and mobility applications.
On the financial front, Citi has adjusted Plug Power's projected annual revenue to approximately $791 million. The company also expects its gross margin to break even by the fourth quarter of 2024. BTIG maintained a Buy rating on Plug Power's stock, while RBC Capital, Canaccord Genuity, and BMO Capital Markets have lowered their price targets.
Additionally, Plug Power received a $10 million grant from the U.S. Department of Energy for a new hydrogen refueling station architecture. The company is nearing the completion of 55 megawatts of electrolyzers and has partnered with Olin (NYSE:OLN) Corporation for liquid hydrogen production in Louisiana. Lastly, Plug Power has made key appointments to its leadership team, including Colin Angle, co-founder and former CEO of iRobot (NASDAQ:IRBT), to its Board of Directors, and Dean Fullerton, formerly of Amazon (NASDAQ:AMZN), as Chief Operating Officer. These are recent developments in the company's ongoing strategic progress.
InvestingPro Insights
As Plug Power Inc. (NASDAQ: PLUG) forges ahead with its new equipment leasing platform, the company's financial metrics and market performance provide a broader context for evaluating its strategic moves. According to InvestingPro data, Plug Power's market capitalization stands at $1.85 billion, reflecting the market's current valuation of the company. Despite the company's efforts to innovate and expand, it has experienced a substantial revenue decline in the last twelve months as of Q2 2024, with a -22.2% change. This downturn is further highlighted by the company's gross profit margin, which sits at a concerning -79.8%, indicating challenges in maintaining profitability.
InvestingPro Tips suggest that Plug Power may face difficulties in achieving profitability in the near term, as analysts do not anticipate the company will be profitable this year. Additionally, the company's stock price has been quite volatile, with significant fluctuations observed over various timeframes. Over the last week, the stock has seen a notable return of 8.25%, yet the longer-term trends show a steep decline, with a 74.51% drop over the last year. This volatility and downward trend in stock price could influence investor sentiment and the company's ability to raise capital through equity markets.
Despite these challenges, Plug Power's liquid assets exceed its short-term obligations, which is a positive sign of the company's ability to meet its immediate financial commitments. This liquidity could be crucial as Plug Power continues to invest in its growth and the development of a green hydrogen ecosystem.
For investors seeking a deeper understanding of Plug Power's financial health and market potential, InvestingPro offers additional insights. There are currently 12 more InvestingPro Tips available on https://www.investing.com/pro/PLUG, which provide a comprehensive analysis of the company's financial position and future prospects.
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