Investing.com -- Shares of McPhy Energy climbed 6% today, despite the company's announcement of a significant cut in its revenue guidance for 2024.
The French hydrogen production and storage equipment manufacturer revised its revenue expectations downward due to project delays and the termination of legacy fuel station contracts.
McPhy now anticipates 2024 revenues of €11 million, a steep decline from the previously forecasted range of €18-22 million. The company has cited several factors for this adjustment, including delays and the cancellation of the Djewels project with HyCC, which has not been included in the 2024 guidance as discussions between the parties are ongoing.
The lack of major commercial announcements since the end of 2023 and the recent cancellation of a 24MW contract in Europe have compounded the challenges faced by McPhy.
Despite these setbacks, the stock's upward movement suggests that investors might be focusing on other aspects of the company's performance or potential. The market reaction could also be influenced by broader sector trends or investor sentiment.
RBC (TSX:RY) analyst Erwan Kerouredan provided insight into the company's situation, stating, "we stressed that McPhy’s commercial activity proved relatively challenging, adding that the combination of underutilized capacity and balance sheet risk should reflect a lower valuation vs peers."
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