EU and US could reach trade deal this weekend - Reuters
Investing.com -- Shares of Lhyfe rose 4.7% following the company’s announcement of revenues amounting to €5.1 million, marking a significant increase from €1.3 million in the previous year. The positive market response was fueled by Lhyfe’s operational achievements and strategic expansions.
The company reported a robust year with over 470 deliveries to clients, primarily in France and Germany, maintaining a 99% service rate. This performance is attributed to the full utilization of its Bouin site and the commencement of deliveries from additional sites in France. Lhyfe’s growing client base, now around 50 customers, and key offtake contracts in France and Germany, highlight its expanding market presence.
Furthermore, Lhyfe has constructed one of the largest fleets for bulk hydrogen delivery in the EU, with 70 new hydrogen tube trailers operating across eight countries. This expansion has enabled the company to extend its customer reach significantly.
In conjunction with its trading update, Lhyfe announced securing an €11 million grant for a new 10 MW production site in Sweden. Despite a slight decrease in the project pipeline from 9.5 GW in June 2024 to 9.1 GW, and a reduction in advanced-stage development projects, the company reassures that this does not affect its long-term growth outlook or the revenue guidance of €100 million for 2026.
The recent memorandum of understanding with UAE-based Masdar to explore joint development of large-scale green hydrogen production projects in Europe could further bolster the company’s prospects if it materializes into a firm partnership.
RBC analysts have commented on Lhyfe’s progress, stating, "Lhyfe’s highly leveraged model with heavy upfront investments represents a risk if the company does not generate sufficient income from hydrogen sales; however, the firm has shown no sign of deceleration since its incorporation in 2019 and its most recent results demonstrated capacity to bring more production sites to life and further increase its list of offtakers.
Looking at it from a valuation angle, Lhyfe trades below most peers on forward-looking sales, while its de-risked growth profile should command a premium, in our view."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.