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Fluence Reduces Q3 FY 2024 Loss, Sees Rise in Energy Storage Demand
POWER & RENEWABLE ENERGY

Fluence Reduces Q3 FY 2024 Loss, Sees Rise in Energy Storage Demand

Fluence Energy, a utility-scale energy storage firm, reported a revenue of $483.31 million for the third quarter (Q3) of the financial year (FY) 2023-24, reflecting a 10 per cent decrease year-over-year (Y-o-Y) from $536.35 million, mainly due to the timing of product deliveries.

The company's quarterly net loss was reduced to $1.07 million, representing a 103 per cent improvement compared to the net loss of $35.04 million recorded for the same quarter the previous year.

The adjusted Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) showed a 157 per cent improvement Y-o-Y, rising to $15.6 million from an EBITDA loss of $27.48 million.

Julian Nebreda, the company?s President and Chief Executive Officer, commented that they had a strong quarter, highlighted by achieving approximately $15.6 million in Adjusted EBITDA, the highest order intake, and a record backlog of $4.5 billion. He expressed satisfaction with the global demand, particularly noting their US domestic content offering, which is scheduled to begin delivery at the start of 2025, ahead of competitors.

For the first nine months of 2024, Fluence Energy's revenue amounted to $1.47 billion, marking a 20 per cent decrease Y-o-Y from $1.54 billion.

The company?s net loss for this period was reduced to $37.35 million, reflecting a 66 per cent improvement from a net loss of $109.63 million for the same period the previous year.

Adjusted EBITDA improved by 89 per cent Y-o-Y, reaching $8.76 million from an EBITDA loss of $81.23 million.

As of June 30, 2024, Fluence Energy had deployed 11.6 GWh and possessed a pipeline capacity of 77.5 GWh.

Nebreda pointed out that recent US regulatory changes, particularly the Treasury?s guidance on the 40 per cent domestic content requirement under the Inflation Reduction Act, positioned the company to leverage substantial growth opportunities. He noted that their strategy of securing US-manufactured battery cells benefits from the Treasury?s safe harbour table, which values domestic battery cells at 38 per cent. Additionally, the Biden administration's decision to increase Section 301 tariffs on batteries imported from China, which will rise from 7.5 per cent to 25 per cent by 2026, further supports their US business model.

Nebreda also highlighted the growing demand for energy storage in the US utility-scale market, driven by the rise of GenAI and the associated need for new data centres. He mentioned that approximately 40 per cent of their US pipeline is indirectly related to data centres.

In the second quarter of FY 2023-24, Fluence Energy reported a net loss of $12.9 million, a 66 per cent reduction from the $37.4 million loss of the previous year, as the company managed to reduce operating expenses.

Fluence Energy, a utility-scale energy storage firm, reported a revenue of $483.31 million for the third quarter (Q3) of the financial year (FY) 2023-24, reflecting a 10 per cent decrease year-over-year (Y-o-Y) from $536.35 million, mainly due to the timing of product deliveries. The company's quarterly net loss was reduced to $1.07 million, representing a 103 per cent improvement compared to the net loss of $35.04 million recorded for the same quarter the previous year. The adjusted Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) showed a 157 per cent improvement Y-o-Y, rising to $15.6 million from an EBITDA loss of $27.48 million. Julian Nebreda, the company?s President and Chief Executive Officer, commented that they had a strong quarter, highlighted by achieving approximately $15.6 million in Adjusted EBITDA, the highest order intake, and a record backlog of $4.5 billion. He expressed satisfaction with the global demand, particularly noting their US domestic content offering, which is scheduled to begin delivery at the start of 2025, ahead of competitors. For the first nine months of 2024, Fluence Energy's revenue amounted to $1.47 billion, marking a 20 per cent decrease Y-o-Y from $1.54 billion. The company?s net loss for this period was reduced to $37.35 million, reflecting a 66 per cent improvement from a net loss of $109.63 million for the same period the previous year. Adjusted EBITDA improved by 89 per cent Y-o-Y, reaching $8.76 million from an EBITDA loss of $81.23 million. As of June 30, 2024, Fluence Energy had deployed 11.6 GWh and possessed a pipeline capacity of 77.5 GWh. Nebreda pointed out that recent US regulatory changes, particularly the Treasury?s guidance on the 40 per cent domestic content requirement under the Inflation Reduction Act, positioned the company to leverage substantial growth opportunities. He noted that their strategy of securing US-manufactured battery cells benefits from the Treasury?s safe harbour table, which values domestic battery cells at 38 per cent. Additionally, the Biden administration's decision to increase Section 301 tariffs on batteries imported from China, which will rise from 7.5 per cent to 25 per cent by 2026, further supports their US business model. Nebreda also highlighted the growing demand for energy storage in the US utility-scale market, driven by the rise of GenAI and the associated need for new data centres. He mentioned that approximately 40 per cent of their US pipeline is indirectly related to data centres. In the second quarter of FY 2023-24, Fluence Energy reported a net loss of $12.9 million, a 66 per cent reduction from the $37.4 million loss of the previous year, as the company managed to reduce operating expenses.

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