Danish electrolyser maker Green Hydrogen System has said its cost of restructuring has more than doubled, after revealing plans to discontinue a product and cut jobs.
The firm now expects to incur costs of DKK 215m ($29.6m) to 230m ($31.7m) after originally estimating DKK 100 ($13.8m) to 150m ($20.7m).
As a result, GHS has adjusted its FY2024 guidance to DKK -485m (-$66.9m) to -500m (-$69m) increasing from DKK -300m (-$41.4m) to -400m (-$55.2m). Excluding the restructuring costs, it said EBITDA would be DKK -260m (-$35.8m) to -275m (-$37.9m) from DKK -220m (-$30.3m) to -260m (-$35.8m).
The company says the additional costs were expected to be incurred in 2025 rather than Q4 2024, in addition to “initiatives to secure faster implementation of the actions in the combined cost-out and restructuring programme, resulting in additional one-off restructuring costs of DKK 5-10m.”
Despite the cost increases, GHS said it “remains committed to executing its strategy, implementing the combined cost-out and restructuring programme, obtaining commercial traction for the HyProvide X-Series, and ensuring the necessary capital reserves to secure a platform that may enable the transition towards profitability and self-sufficiency by the end of 2026.”
The firm also plans to start a rights issue of at least DKK 300m ($41.4m) in March-April 2025. Previously the firm warned that without raising additional funds, it could be in breach of loan agreements unless waived by lenders.
In October the company unveiled its cost-cutting and restructuring measures in response to slow market adoption of hydrogen and delays in commercialising its X-Series electrolyser.
Read more:Green Hydrogen Systems undergoes major restructure to cut costs by 50%
It announced it would discontinue its incumbent A-Series system and reduce company costs by up to 50% by 2026.
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