Teaming up with Plug to capture and market this hydrogen, therefore, "will allow Olin to recognize the full potential of its untapped hydrogen supply." And indeed, according to Evercore ISI analyst James West, all of this is very good news for Plug Power, with the Olin partnership in particular looking like "the beginning of a beautiful friendship." As the analyst explains, Olin already produces hydrogen as a by-product of its chlor alkali production business. Like the MOL venture, the Olin project is expected to begin operations in 2023. Gabriel, Louisiana that can produce 15 tons per day (tpd) of green hydrogen - and to put that in context, 15 tpd is about 5,500 tons per annum, or more than 3x what the MOL refinery can do. Together, the companies will establish a production plant in St. chemicals company Olin Corporation on a second joint venture to produce and market green hydrogen. Just one day later came Plug's second announcement: Plug has signed a memorandum of understanding preparatory to teaming up with U.S. MOL will use this unit to produce green hydrogen at its Danube Refinery - and also to produce "up to 25,000 tons of carbon dioxide" reduction credits to offset about one-sixth of its carbon footprint. Plug will contribute a 10-megawatt electrolysis unit to the joint venture, capable of producing "approximately 1,600 tons of clean, carbon-neutral, green hydrogen annually" once it begins operation in 2023. Plug's first big news of the week arrived Wednesday morning, when the company announced it's teaming up with Hungarian oil and gas giant MOL Group "to build one of Europe's largest-capacity green hydrogen production facilities at MOL's Danube Refinery in Százhalombatta, Hungary." You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).It's been a busy week for hydrogen fuel cell company Plug Power ( PLUG), and at least one analyst is taking notice. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already. It's never too late to start following a top notch stock like Plug Power, since some long term winners go on winning for decades. Arguably, this is well and truly reflected in the strong share price gain of 42%(per year) over the same period. Even measured against other revenue-focussed companies, that's a good result. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.įor the last half decade, Plug Power can boast revenue growth at a rate of 29% per year. Shareholders of unprofitable companies usually expect strong revenue growth. Plug Power isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. ![]() Only time will tell if there is still too much optimism currently reflected in the share price. In that time, the share price has soared some 476% higher! So it might be that some shareholders are taking profits after good performance. But that doesn't change the fact that the returns over the last half decade have been spectacular. ( NASDAQ:PLUG) shareholders might understandably be very concerned that the share price has dropped 53% in the last quarter.
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