Doosan Fuel Cell Co., Ltd. to expand exports on orders from North America and Germany... “Back to operating profit next year,” says Mirae Asset Securities

\ \ [Financial News] Doosan Fuel Cell Co., Ltd. is expected to return to operating profit next year as it begins to book export volumes as revenue in earnest, in addition to supplying fuel cells for domestic power generation.
Ryu Jae-hyun, an analyst at Mirae Asset Securities, said in a report on the 29th, “The addition of overseas contracts is expected to drive a sharp increase in orders.” He explained that Doosan Fuel Cell Co., Ltd.’s cumulative new orders through September this year totaled 66 megawatts (MW), and that annual orders would exceed 137 MW, about 1.9 times last year’s level, as awards from the domestic Clean Hydrogen Power Generation Auction Market (CHPS) and contracts for North America are reflected in succession. The two overseas contracts Doosan Fuel Cell Co., Ltd. signed in the third and fourth quarters were for the supply of solid oxide fuel cell (SOFC) stacks to Riverion in Germany and phosphoric acid fuel cells (PAFCs) to North America through its affiliate HyAxiom, with a combined value of 932.3 billion won.
Ryu expected exports next year to reach about 150 MW as volumes under the initial North American contract begin to be delivered in March next year. Estimated PAFC export revenue from this is 455.8 billion won. He also forecast that SOFC revenue, driven mainly by the German contract volumes, would rise from 20 billion won this year to 84 billion won next year.
Demand from U.S. data centers to secure power is also seen as a business opportunity. Analysts say demand for onsite generation—producing electricity directly at the site—is increasing as grid connections are delayed. The company is also securing the production base needed to meet rising volumes. Doosan Fuel Cell Co., Ltd. has said it restarted its existing cell stack assembly (CSA) production line, bringing its production capacity to as much as 390 MW.
Ryu forecast that Doosan Fuel Cell Co., Ltd.’s revenue next year would rise 56.5% from this year to 838.2 billion won, with operating profit reaching 35.4 billion won. However, managing production yields and maintenance costs is likely to be key to ensuring that expanded orders translate into stable profits. The yield at the core SOFC process is currently about 79%, and the company plans to raise it to 90% by March next year.




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