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DÜSSELDORF, Germany and ATLANTA - Heramba Electric plc (NASDAQ: PITA), a company specializing in the decarbonization of public and commercial transportation, has announced a $26 million contract through its subsidiary Kiepe Electric for a battery upgrade program with King County Metro in Seattle. The initiative is set to enhance the In Motion Charging (IMC®) capabilities of Seattle's electric trolley buses.
The three-year agreement, starting in 2024, will supply King County with advanced battery packs, significantly increasing the capacity of the existing energy storage systems. This upgrade aims to boost the efficiency of the region's e-mobility network, thereby reducing carbon emissions and upgrading public transportation.
Kiepe Electric's on-site service support will accompany the battery enhancements for up to five years. These developments in Seattle, along with a recent contract win with the Chicago Transit Authority, contribute to Heramba Electric's North American orders, which total over $75 million for 2024 year-to-date.
CEO Michele Molinari of Heramba Electric emphasized the significance of these contracts in the company's strategy to provide American-made products with German engineering to support urban decarbonization in the U.S. Alexander Ketterl, CEO of KIEPE Group, also highlighted the partnership's alignment with Seattle and King County's environmental objectives.
The updated battery pack developed by KIEPE will be installed in 174 electric trolley buses that were delivered to King County Metro between 2014 and 2017. The IMC® technology enables these buses to operate over seven miles without overhead wire connections, thanks to space-efficient batteries that recharge during operation.
Heramba Electric, headquartered in Germany and with a global footprint, focuses on sustainable electric transportation solutions. Kiepe Electric, a Heramba subsidiary, has a history dating back to 1906 and is recognized for its electric systems for various forms of public transit.
The information for this article is based on a press release statement from Heramba Electric.
InvestingPro Insights
Heramba Electric plc's recent contract wins in North America underscore the company's commitment to enhancing public transportation with sustainable solutions. However, a closer look at the company's financial health through InvestingPro data indicates some challenges. With a negative Price-to-Earnings (P/E) ratio of -31.94 for the last twelve months as of Q4 2023, Heramba Electric's market valuation reflects concerns over its profitability. This is further evidenced by an operating loss of $3.11 million and an EBIT of the same amount for the same period.
The company's basic and diluted earnings per share (EPS) for continuing operations stood at a significant loss of $137.51. Moreover, the price total returns have seen a steep decline across various time frames, with a one-month price total return of -78.17% and a six-month return of -77.96% as of 2024. These figures suggest that investors have been reacting to the company's performance with caution.
Despite these challenges, Heramba Electric has demonstrated a strong return over the last three months, according to InvestingPro Tips, which could reflect investor optimism about the company's long-term strategy and recent contract wins. It's also important to note that the company does not distribute dividends, potentially reinvesting earnings into its growth initiatives.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available, providing a comprehensive view of Heramba Electric's financial outlook and market position. Interested readers can find these valuable insights by visiting the dedicated InvestingPro page for Heramba Electric at https://www.investing.com/pro/PITA.
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