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Ballard Power Systems

Ballard Power 1Q earnings in line, wins $44M order via joint venture to supply fuel-cell products to China

CEO Randy MacEwen says the deal supports the company’s order book and growth aspirations in 2019 and into 2020

Electric vehicles
Ballard’s new liquid-cooled fuel cell stack, the FCgen-LCS, will be a core component for use in buses, commercial trucks and trains

Ballard Power Systems Inc (NASDAQ:BLDP) stock climbed Thursday after the fuel-cell technology company reported first-quarter earnings that were inline with Wall Street estimates.

More important, in forward-looking news, Ballard said it inked a pact worth $44 million with its joint venture Weichai Ballard Hy-Energy Technologies Co, to supply fuel cell products and components that will be used in the assembly of modules to power zero-emission fuel cell electric vehicles in China. 

Ballard and Weichai have a joint venture to support China’s growing fuel cell electric vehicle market in which Ballard holds a 49% ownership stake.

Investors sent shares of Ballard Power Systems up nearly 3.3% higher to $3.34 before the opening bell.

READ: Ballard Power Systems signs contract extension with Audi AG valued up to US$100mln

According to the deal, the modules assembled by the joint venture company will be sold to Weichai Power Co to support its commitment to supply a minimum of 2,000 fuel cell modules to commercial fuel cell electric cars in China. All the engineering support and products to be supplied by Ballard, are planned for delivery in 2019 and 2020.

All the supplies will be based on Ballard’s new liquid-cooled fuel cell stack, the FCgen-LCS, which will be a core component for use in buses, commercial trucks and trains.

1Q financial highlights

For the quarter ended March 2018, the Burnaby, British Columbia, company reported a net loss of $0.04 per share on revenue of $16 million. The consensus estimate was a loss of $0.04 per share on revenue of $20.9 million. Revenue fell 20.4% compared to the same quarter a year ago.

"Q1 2019 results were consistent with our expectation for a softer start to the year," said Ballard Power Systems CEO Randy MacEwen. "Together with the Weichai-Ballard JV agreement announced earlier today, our order book and sales pipeline support the company's 2019 plan and growth into 2020.”

The company has cash reserves of $165 million.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive

Quick facts: Ballard Power Systems

Price: $4.44

Market: NASDAQ
Market Cap: $1.03 billion
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