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Powercell Sweden (ST:PCELL) reported its Q4 2024 earnings with notable achievements, including a 30% quarterly growth and an 8% increase for the full year despite a challenging market environment. With a market capitalization of $183 million, the company surpassed its earnings expectations, reporting a small positive result. Following the announcement, Powercell’s stock surged by 12.21%, reflecting investor confidence in the company’s strategic direction and recent innovations. InvestingPro data shows the company achieved an 11.66% revenue growth over the last twelve months, demonstrating consistent expansion.
Key Takeaways
- Powercell Sweden’s stock rose by 12.21% after reporting a positive Q4 result.
- The company achieved 30% growth in Q4 and 8% for the full year 2024.
- New product launches and market expansions highlight strategic growth.
- Positive operating cash flow and a successful share issuance bolstered financial stability.
Company Performance
Powercell Sweden demonstrated resilience in Q4 2024, achieving a 30% growth rate compared to previous quarters. For the full year, the company managed an 8% increase despite a soft market, showcasing its ability to adapt and thrive amidst industry challenges. Strategic moves, such as entering new market segments and improving internal efficiencies, have positioned Powercell well against competitors. InvestingPro subscribers can access 10 additional key insights about Powercell’s financial health and market position, including detailed analysis of its growth trajectory and competitive advantages.
Financial Highlights
- Revenue: Not specified, but significant growth noted.
- Earnings per share: Positive result in Q4.
- Operating cash flow: Positive for the year 2024.
- One-time grant: 30 million received in previous quarters.
Earnings vs. Forecast
Powercell reported a small positive result for Q4 2024, exceeding the forecasted EPS of -0.0201. This unexpected positive outcome marks a notable achievement, especially given the single downward EPS revision in the past 90 days.
Market Reaction
Following the earnings announcement, Powercell’s stock price increased by 12.21%, closing at 34.18, up from the previous close of 30.46. According to InvestingPro analysis, the stock appears overvalued based on its Fair Value metrics, despite trading with a healthy current ratio of 1.84. This surge reflects investor optimism, driven by the company’s robust performance and strategic growth initiatives. The stock’s movement aligns with broader market trends, showcasing resilience against sector volatility. Notably, the company maintains strong liquidity, with cash holdings exceeding debt obligations.
Outlook & Guidance
Looking ahead, Powercell is focused on reaching breakeven and continuing top-line growth through OEM contracts. With an EBITDA of -$6.44 million in the last twelve months, the company plans to accelerate next-generation product development and expects continued growth without providing specific forecasts. Detailed guidance is anticipated in the Q1 2025 report. Get comprehensive insights into Powercell’s growth strategy and financial outlook with InvestingPro’s detailed research reports, available for over 1,400 stocks.
Executive Commentary
CEO Richard Birkling emphasized the company’s long-term investment strategy, stating, "We are not running our cell only to show short-term growth and short-term profitability. We are investing into the future ability to also generate money in the upcoming technology portfolios." He highlighted the ongoing energy transition, noting, "The energy transition is happening. We see more action in the market than we have seen ever before."
Risks and Challenges
- Potential U.S. tariff impacts could affect market dynamics.
- Fluctuations in global energy demand may influence growth.
- Supply chain disruptions could hinder production capabilities.
- Market saturation in key segments may pose growth challenges.
- Macroeconomic pressures could impact overall industry performance.
Q&A
During the earnings call, analysts inquired about the potential impacts of U.S. tariffs and ongoing projects, such as the Norwegian ferry initiative. Discussions also covered Bosch (NSE:BOSH) royalty and stack production details, as well as strategies for entering the aviation and train markets.
Full transcript - Powercell Sweden (PCELL) Q4 2024:
Conference Moderator: Welcome to the Power Cell Group Q4 twenty twenty four Report Presentation. For the first part of the presentation, participants will be in listen only mode. During the questions and answer session, participants are able to ask questions by dialing 5 on their telephone keypad. Now, I will hand the conference over to the CEO, Richard Birkling and CFO, Anders During. Please go ahead.
Richard Birkling, CEO, Power Cell Group: Good morning and a warm welcome to our quarter four report for 2024. I am now joined with Anders for the first time. So warm welcome, Anders.
Anders During, CFO, Power Cell Group: Thank you. Thank you.
Richard Birkling, CEO, Power Cell Group: I’ve been now with the company for two months, working initially in parallel together with Tubing Bastostan and taking over from January 1. And it is with pleasure that we’re now presenting the quarter four report and also giving you some introduction to the general status in our industry and where we’re heading with Power Cell. So quarter four twenty twenty four became a slight recovery compared to what was previously a rather soft year. We were able to report a 30% growth for quarter four, which gave us an 8% growth for the full year, which was quite good in what was a rather soft market that we have reported starting from quarter three, quarter ’4 in 2023 and carrying over. Also happy to be able to report a small positive result, although it’s just for one quarter.
It’s still good indicator of the potential we have to leverage growth in the Power Cell. Other significant events in the quarter is, of course, the memorandum of understanding we signed with Arabia to explore the next generation aviation fuel cell. We are in the process of certifying the first part of the business for the smaller aircraft propulsion unit, where SUREVIA last week received a G1 certificate from FAA in The U. S. And Power Cell this week reported that we completed certification of AS9100, which is the aviation certificate for designing and manufacturing for aviation, which is indicating that the certification process and commercialization of the first part of the business, we say, is progressing well.
The fact then that we add the collaboration or evaluation of a potential collaboration for the next part where we go for larger aircraft is, of course, encouraging and a good indication of a very healthy joint development that we do with them. Also completed the direct issuance of share in December, which we were happy about, bringing in new stronger owners and of course, fresh capital for the company, strengthening the balance sheet and giving us more room to maneuver and accelerate our development because we think that we are in a very good position strategically. This gives us even more potential to act on what could be a potentially interesting market. Also positive cash flow that we improved. Andres we’ll explore more about this because we have one time effect that is positive this time where we had some negative capital effect last year.
So really good underlying cash flow, but something we need to continue to monitor and work on going forward. All in all, for us, it’s been a robust market. The fundamentals is there for us, and we talked about this in previous calls as well. After summer in 2024, we saw a change in the market where we saw OEM orders coming in. First half of twenty twenty four, it was difficult to have any signed orders.
Second half, the market accelerated and it’s doing it with the OEM customers that we have been positioned and trying to establish contracts with for quite some time. The change is that previously the turnover time from initial negotiation to completion of the delivery and invoice was roughly five years. Now it’s down to eighteen months, which is a significant change in our industry. And that is not just from the Italian shipyard that we communicate, but that was in general the order intake of the second half of last year. Parcel have continued to focus on OEM business and commercial integration, which is important because in this market where you see a lot of uncertainty related to policy changes and regulations, working with OEMs that are doing this because it makes business sense and it’s critical for them in the future competitive in their industry, I think gives us a bit more robustness to these fluctuations that we see in subsidies and policies.
The segments that are driving growth at the moment are marine and power generation development. We see increased demand with really strong customers with a specific purpose to what they do, which is also very encouraging. If we then summarize 2024, it was a soft market, but we saw good improvement in the second half of twenty twenty four, driven by OEM orders to power us up. The order intake for the second half was about 50 millisieck per month. And once again, with rather short turnover time from order to complete the delivery and there after that in margin.
So a good progress in the market, not just in numbers, but in the characteristics of the orders. We were happy to introduce Marine Systems 02/25 and also the M2 power methanol power patch, which is adding to our competitive strength. And we saw with the introduction of Marine System two twenty five, which was the upgraded version, we immediately received more than 75 orders or system orders, which is now the ramp up we do with serial production on this one, which is also a first for Paracel. And then as I said, complete certification of the AS9100, which is a very important milestone for Barcel because this is also one of these indicators how we are maturing as a company. And although this certificate is specific for the aviation deliveries, it is of course a very important fundamental for all our segments because it gives us a step of approval on the industrial stability and ability to provide quality and safety for our customers, which is really important.
So when we exit 2024, we do it as a strong company. We have updated the product portfolio. We have an updated technology portfolio with the next generation fuel cell stack, which we were running for the first time in December as a full stack. This is the building block that we configure between 300 kilowatts up to one megawatt of power, which will be a very important building block going forward. Even though we claim that we have the best energy density and thereby performance in the industry, this new generation, which is on TRL level five at the moment, it gives us a 55% improvement in performance, which is significant because it brings down weight, size and thereby also cost.
So a very important part of our future development. The fact that we are now in stock production of serial delivery in quarter four and wrapping up in quarter one this year is really encouraging. We have a proven business model and we have also proven ability to leverage growth. And Anders, we show this because we are managing to report a small profit, but we do it on also rather low levels of revenue. So we have a very interesting business model, which we have claimed previously to be asset light and it’s proving now to have a strong leverage in its growth.
We also enter 2025 or exit 2024 with improved financial stability and we have strengthened the balance sheet, which was a focus for us in the later part of 2024. So with that, Anders, give you any feedback to the numbers.
Anders During, CFO, Power Cell Group: Thank you very much, Richard. I will walk through the numbers. I will do that in a more reflective mood as the numbers are quite well described in the report itself and there are some elaborated text associated to them. But I will try to highlight some of the things that I think either could be elaborating on what Richard has been saying and what I think is important to remember as you read the numbers. Starting with the sales number, obviously, we see the quarterly differences here with a very strong fourth quarter compared to the previous three quarters.
And if we would have looked at the year before, we would have seen the same trend. I think indication report gives at hand that we might see a more smooth ride here between quarters moving forward without having said anything about forecasts or anything like that. But this is the trend, and we had a very healthy Q4 with that respect. We can change slide, Richard, to the next. Now looking at the Q4 P and L, I think the obvious thing here is that we have some order intake that we accounted for as a stage of completion that generated a strong outcome of the top line.
Although, we have been to some extent conservative as this is one of the first real large such orders when it comes to the profitability on such a contract. But we still see that the fundamentals in Q4 came out very strong and we are happy to be able to leverage that going forward. We can go on to the next page. For the year and the P and L, I think it’s important to remember the one time effect or the extraordinary effect that were taken in the previous quarters this year. That is a 30,000,000 grant that was given to us, basically relieved.
That is a 30,000,000 plus to the P and L. And you see that as a non recurrent item for this year, although there were no such things in Q4 for comparison reasons. But I think that’s the real key thing to notice here. So with that having said, I think we can go to the next one. Balance sheet, like Richard said, I mean the focus for the company in the last half of the last year was basically to have a more stable balance sheet, including equity, and we have the successful round of bringing in equity.
The other things that have changed that is obviously different from ’twenty three is that we do have capitalized a bit more of the research and development activities as we are moving into a more aggressive phase on those things and taking on more tasks. We also at the year end had the situation of we had a lot of purchases following the order that we received in Q4. And we also had some prepayments for the funded projects that we’re doing internally. Those things together generated a very high level of current liabilities. Part of that is the payables, of course.
And it’s important for me to say here that as much as a negative cutover effect that had last year going into ’twenty four, we might see a bit of a positive turnover effect here when we go into ’twenty five. So the differences that I will share with you in a while will yes, there are differences. And they are like Richard said, there’s a fundamental improved cash flow. But obviously, it has had some periodization effects when it cut over from last year to this and from this year to next 2425. So let’s move on.
And the outcome of what I just mentioned is quite well viewed here on this chart. There was a very negative written cash flow by the end of last year and in or ’23 and this year we have a positive operating cash flow. And I just want to make sure that everyone understand that there are cutoff effects that works in the opposite direction in the two different cutoff points. But underlying cash flow is positive. I think I’ll leave it with Richard and potentially pick up questions after having finalized with some KPIs.
I think these KPIs are fine in the report. I think it’s for us extremely important that we follow the EBITDA as a result measure and of course the total cash flow. And talking total cash flow in this case, obviously, we’ve had a significant improvement following both the loan that we had from our financers and the share issue. Having said so, Richard, I’ll leave it to you.
Richard Birkling, CEO, Power Cell Group: Very good. So if we then look at the strategic focus for 2025, we have a very strong focus on reaching breakeven. That should not be misinterpreted as a forecast, but it is a strong focus. And I think that this is why we talk so much about leveraging growth. And continue our top line growth, we need to focus on the OEM contracts because that is what is giving us a repetitive sustainable business.
We have now a number where we have designed in our technology into both marine OEMs and also part generation OEMs, which means that when they are outselling their core offering, we are part of that, which is a very, very good business model for Power Cell. That is giving us an opportunity also to scale by selling more of the existing product generation, which is very important to enable us drive towards breakeven and a very good balance of cash flow. But then at the same time, we are accelerating the next generation of products. And this is where I’m always coming back to where I’m most proud of Power Cell. The ability to actually have a growth that is one of the best in the industry, the ability to leverage growth while we’re still investing into current offering on the product portfolio and into the future earning because this is so important.
We are not running our cell only to show short term growth and short term profitability. We are investing into the future ability to also generate money in the upcoming technology portfolios. And that is, as I said, really proud of that balance. We are continuing to working with the industrialized innovation concept where we are adding more and more product features. Last year, we had two major releases of new technology and new offerings.
In 2025, we will continue because this is still an innovation driven market. And we need to add more and more value to our customers, which is part of the industrialization concept. And as I said, I’m really proud of our ability to balance innovation, industrial stability and leverage growth with a clear path towards breakeven. And we’ll be happy to explore more of that in the question section. We have said this before that we are now in a new phase in the market where we see a commercial market growth from OEM business, which is posing new requirements on companies like Paracel, where you need to have your technology product and operation in order.
We are now entering into market where more traditional competitive perspectives are being creating value. We need to have delivery on time. We need to have good quality and good safety in our product. We need to focus on uptime in the application for the customer, etcetera, which is really, really interesting because that’s also proving PowerSet as an industrial company, not just a technology startup. So this also poses new opportunities because not everyone in the industry, they’re not up for this.
So we think that we are well positioned to capture this. And we are prepared for doing this by investing into the product offering, investing into internal abilities and capabilities. We have focused on productivity in our operation and on internal efficiency. All of these quite, if I may say, boring characteristics of running a company, but that is what’s creating value long term. Everybody can invest in new technology and in your brand and marketing, but you also need to invest in the fundamentals of being an industrial company.
And that is something that Parcel have been preparing for and hopefully can benefit from in the upcoming years. So if we look at the market, we now see what I call a bit of an ambiguous market characteristic. We see solid OEM driven growth rather than the subsidy driven growth. But we also have an uncertainty around policy and regulatory aspects. For Power Cell, I am convinced that the energy transition, it is happening.
We see more action in the market than we have seen ever before. We see more investments and actual deployment of hydrogen availability, hydrogen value chain and supply chain. So we see more actual progress. But we also see more questions and more negative sentiments around the whole engine transition. But to me, as I said, and I think that it could be a bit of a challenge sometimes, but we have not been chasing the subsidies.
We have been trying to focus on OEMs that are doing this because they need it in their business model. Hopefully, that can give us a bit more of a robust situation where the when you have some uncertainty on the policy side, subsidy side. So we are working with a clear commitment from OEMs where they have a focused effort and a clear secure deployment plan. So we will come back to this in the quarter one report on how the market is developing. But for Power Cell, we are a bit positive, but not over enthusiastic.
When you have uncertainty in the market, it’s affecting everybody. But we’re trying to navigate with our offering as we have done in the past. And we do that with having leading technology and actually going into to real commercial deliveries, which is quite important for us. So with that, we will come back and talk to you with interim reporting for quarter one on April 24. Then we have the AGM in Gothenburg, where you’re all invited to visit us.
Most likely this time, we will be at PowerSet, which gives you an opportunity to come and see production and meet the people and see the products firsthand. So with that, we open up for questions from the audience. Good. And then we enter into questions. One of the most obvious ones is the one that we touched upon.
Do we have any concerns about tariffs from future U. S. Deliveries or deals to The U. S? Of course, we have concern because we don’t really know
Anders During, CFO, Power Cell Group: where this will play out.
Richard Birkling, CEO, Power Cell Group: On the other hand, we also see a lot of opportunity. We have been preparing to have assembly in The U. S. If we have customers that are giving us enough critical mass. But if this happens and materializes, I think that everybody will be affected.
And we have a very strong offering. We have a good, I think, price point and value point. So most likely, we will be able to navigate through this. But we will focus on this and come back and report how it is affecting us. But this is not a great concern to Power Cell at moment.
Any comments on that from your side, Anders?
Anders During, CFO, Power Cell Group: No, I think you’re right. I think there will be a very strong drive from any companies and will be part of that action list that will be taken. And I think as you mentioned
Richard Birkling, CEO, Power Cell Group: that we are well prepared for it. And then we have a question whether or not the Norwegian ferry order is fully delivered and invoiced. And that is no. We’re still in the deployment phase. We will be shipping components to be commissioned into the ship during 2025.
So we still have some revenues and also cash flow coming in from that project in order. So we have a question on the collaboration with Bosch and the royalty. And we see now that the royalties were improving, primarily driven by a growth in the Chinese market for Bosch. And that is a quite interesting indicator to the energy transition in general. China is developing really rapidly in this area.
And that is driven by a very clear policy from government to electrify large part of their commercial transportation sector. They have now in quarter three, I think it was deemed gray hydrogen as green as long as it’s a byproduct of previous industrial processes, enabling access to massive amounts of hydrogen and really being a catalyst towards the whole energy transition in China related to fuel cells. So we expect China to continue to grow for Bosch. We saw stable income on royalty. I’m not sure about the numbers for 2024.
But it was a good growth and hopefully that can continue to be a stable income. Unfortunately, this is nothing that Power Cell can affect. We’re just reporting what is sold by Bosch. But we think that Bosch are doing quite well, especially on the Chinese market. Let me see.
I have additional questions here. So a question that we saw a good development and a positive result quarter four for PowerSun. What is the most important to focus on in 2025 to keep the positive momentum? I think that that’s a good question. I think that the if we scale down to what is the growth strategy for Power cell on the fuel cell market, it’s quite simple.
The growth strategy in any technology shift, you need to grow number of installations, penetration in the market, then you also need to grow your own equation per installation. So when you do that, you get an exponential growth. The Marine System ’2 ’20 ’5 was an investment in that by improving performance, more power from the same output and same product, really important. And we saw good progress in that one with the orders coming in. And then the methanol power plant is of course a very important one where you actually get both of these perspectives.
You will expand number of installations because with the methanol tauplants, especially for marine, you lower the threshold for the customers. You take a lot of the responsibility and complexity of integration away from your end customer. So you shorten time to market, you minimize technical risk and technical investment for the customer. That is driving number of installations. And then of course when you do that and you incorporate and integrate more into your offering, you also increase your value per installation.
So instead of just selling the fuel cell, we’re selling more bundled offering, which is doubling the revenue per installation. That is one of the key important aspects of driving growth in this market. But then focusing on your cost position, cost of goods is really, really important. Having a healthy gross margin, so we continue to leverage growth. That will also be a very important part of what we focus on in 2025.
One question is, if we have any activity in the train market, Ballard seems to be successful in this area. Yes, and they are. And we’re quite happy about that because we need to have strong colleagues in the industry. Than other, they have been approaching the train market for like three years and it’s now paying off. We have decided this year to enter into the train segment because we think now we have an offering that is quite good for trains.
Unfortunately, the train segment is heavily driven by subsidies because it’s quite often either public transportation tenders that you’re quoting and or public operators. So that is a market that is a bit more affected by changes in policy and regulation. But we still see an interesting development in this area. Let me see here. With your order book giving you the possibility to enter serial production in ’twenty five, do you expect another growth year?
And how should we think about the bottom line development for ’twenty five? This question is from our good friend, Konstantin, at Jefferies. And as always, I’m disappointing Konstantin because he wants me to give forecasts and I am a boring CEO saying that we’re not giving a forecast, we’re just reporting what’s happening. But of course, what we said in the quarterly report is that with the OEM orders, we see an opportunity to even out some of the varieties between the quarters, a bit more stable. That shouldn’t be misinterpreted as solid high number growth.
But of course, we are viewing ourselves as a growth company. We managed to report an 8% growth in what was a very soft market in 2024. We now see that we have a good position with the updated product portfolio, with our strategic positioning with our offering. So of course, we are expecting to be a growth company. But how that plays out in 2025 or if it’s going to be over 2026, that needs to be the that’s just the proof is in the numbers that we’re reporting.
But we are going to focus on protecting bottom line, protecting the gross margin, driving towards breakeven. And hopefully, we can come back quarter by quarter and have good progress to report. But thank you for your patience, Constantine. Overview of what is in our order book for ’twenty five. Well, we are contemplating this together with the Board of Parson and our financial advisers, how to start with more forward looking information, slightly better guidance, not necessarily forecast.
And we will come back to that one in quarter one, because we see the need to give you more guidance on the especially the order book. So thank you for that question. And hopefully, we can come back and have a bit more of a positive response. Then we have from Carnegie, if we have any updates on HyFlex and Hitachi (OTC:HTHIY). Hitachi participated in the big hydrogen trade show in Paris in January.
Hytrex was one of the important pieces of their presentation. It was also noted that the Hytrex product and team around it received the Hitachi Group Innovation Award for 2024. So this is becoming a prioritized area within Hitachi. Hopefully, we can come back with some information and actual orders. But before that, we can just point in the direction of what communication and activities that are being done in the market from Hitachi and together with Carousel.
And we think that that segment has a very promising future. If it happens in ’twenty ’5 or ’twenty six, we don’t really know. But the demand for electricity in society is just increasing. I think that the report from IAE was 4% year over year in ’twenty three, ’twenty four, which is a massive growth when we’re talking about public grids that are already crammed today. So the demand for decentralized solutions or complementary solutions where you have green energy solutions, green energy sources that are volatile in its nature, of course, having technology and solution to balance that to have backup solutions or energy storage that demand is going to increase.
But if we see that growth in ’twenty five or ’twenty six, we don’t actually know. But as soon as we know, we will come back and report back to you. We have a question whether or not we will have an off grid package for private houses. That was a focus in the industry in 2018, ’20 ’19. And I think that that could in the future be a very interesting technology proposal.
But at the moment, the cost of technology and cost of investment is too high for the consumer market. And our technology and products and technical solutions and infrastructure is more suited for commercial applications where you can have a clear analysis and return on investment calculation. So no, I don’t think that we will see anything for the consumer market in a trillion long time. So with that, I think that we have covered most of the questions. Let me see if I have something more.
Conference Moderator: The next question comes from Henrik Alvesgog from Rieta AB. Please go ahead.
Henrik Alvesgog, Analyst, Rieta AB: Okay. Hello, gentlemen. Do you hear me?
Richard Birkling, CEO, Power Cell Group: Yes. Hi, Henrik.
Henrik Alvesgog, Analyst, Rieta AB: Hi. Great. Okay. Well, you’ve covered most of my questions already. But I’m a little curious about the well, you’re sourcing of stacks from Bosch.
And since well, the S3 stack production started at Bosch, I think, 2021 or 2022. And you’ve been working with upgrades on your systems, etcetera, through these years. And I’m kind of wondering if are they still producing the same stack as they did initially? And I’m just trying to figure out if the sourcing on your side might run into difficulties at some point.
Richard Birkling, CEO, Power Cell Group: Okay. Good question. Just to go back in history and get the dates right. Total (EPA:TTEF) pressure for Bosch was in 2023 with S3. And then one reason why we cherish and value the collaboration with Bosch is that when you have an industrial partner like that, with any industrial product, you make constant upgrades.
You do upgrades because you see construction possibilities, you see quality improvement. Bosch, they have a meticulous process to do that and do the kind of upgrades in a controlled manner. So when Power Cell Orbash is to improve the core technology, core product, that is incorporated, tested, indexed, validated which was put into production. So when we scale something in that sense, we have full process control doing that. In parallel, power cells still have the ability to manufacture stuff in Gothenburg, although the sourcing is from Bosch.
Now we have an updated stack that is S3 still, just a revision update. But what we do improvements on is on the silicon side. One reason why we can do so many improvements on the is because we have a very stable core product in the Stacks. So it is a good question. We still have a very solid industrial partner in Bosch, which is our main supplier for stacks.
But in parallel, of course, Power Cell have maintained the ability to manufacture our own stacks if we, for some reason in the future, would be forced to or choose to manufacture in our own controlling set.
Henrik Alvesgog, Analyst, Rieta AB: Yes, great. Thanks. And then a question on your partnership with Cerro Avia. Well, the certification and everything is, I guess, going according to plan. So while production is or production is getting closer and previously, you talked about setting up assembly in The UK and then I guess you’ve been considering maybe doing it in The U.
S. Instead. And I’m just wondering since we’re getting closer and closer, is there a plan now? And could you say something about it?
Richard Birkling, CEO, Power Cell Group: Yes. We have a plan. Once again, going back to the business model and industrial setup of Power Cell, we have an opportunity to select rather late where to initiate the final assembly. Once again, the core production will be together with Bosch or in the factory in Gothenburg, which are both already operating and up running. But the final assembly will happen close to the customer.
And as you point out, with some of the uncertainty in the industry, Suralvia have been talking about The UK fleet and also American where they have initiated their factory up in Washington state. If they would make any changes to that, that is something for Seravia to communicate, of course. But we would, of course, then consider following them where they go. Because as we said before, we think it’s very important to have a proximity to the customer when you have a serial production on that scale. So, we will be able to follow them and support them wherever they go.
Henrik Alvesgog, Analyst, Rieta AB: Okay, great. And then just finally, you mentioned the methanol reformer in the presentation. And did I understand correctly that it is already ready for launch?
Richard Birkling, CEO, Power Cell Group: It is ready for orders and we’re selling it to the market. But then a complex integration system like that will require receiving customers. Although, if we have an order today, it will not be commissioned before eighteen to twenty four months because it needs to be built into a vessel. And that vessel is most likely a larger installation. So yes, it is ready to we’re selling it to the market.
But deliveries, it’s not something you order as a component of the shelf and a commodity. So there will be quite an extensive period from order to delivery because it’s such a complete industrial system. We don’t want to build expensive inventory. I have a CFO focusing on that one. So that’s why there is a slight kind of project fate as well.
So did we have an additional question? Okay. With that, I think that we have completed this quarter four report of 2024 and can now fully focus on 2025. As always, if you want to stay in touch with us, you’re more than welcome to reach out. You’re more than welcome to visit us in Gothenburg, visit the factory and also see products and people talk to us.
Otherwise, looking forward to see you here in April for the quarter one report and continue to push Parcel forward and grow our significance in this market because the energy transition is happening. And Parcel, we’re proud partnering that one. So thank you very much. Enjoy your rest of the week.
Anders During, CFO, Power Cell Group: Thank you.
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