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.

Next Story
Infrastructure Energy

J&K CM Rules Out Power Privatisation, Focuses on Sector Reform

Jammu and Kashmir Chief Minister Omar Abdullah has dismissed speculation regarding privatisation of electricity in the Union Territory, emphasising that his priority is to strengthen and reform the power sector.“We are not discussing privatisation. By reducing losses, improving billing efficiency, and enhancing revenue, there will be no need for it. My vision is to strengthen and reform the power sector in J&K,” Abdullah stated.He addressed the gathering at the 58th Engineers’ Day at SKICC on Monday evening, an event honouring Bharat Ratna Sir M Visvesvaraya for his pioneering contri..

Next Story
Infrastructure Urban

Mumbai’s Sassoon Dock to Get Tech-Driven Modernisation with Finland

The Maharashtra government, in collaboration with Finland, will modernise Mumbai’s historic Sassoon Dock using advanced technology, state minister Nitesh Rane announced on Wednesday.Rane met a delegation of Finnish officials and representatives of Finnish companies at the dock to discuss strategic plans for upgrading the facility in south Mumbai, according to an official statement.Built in the 19th century, Sassoon Dock is one of Mumbai’s oldest and busiest fishing harbours. Operations currently exceed its original capacity, raising concerns over hygiene, odour, fish handling standards, an..

Next Story
Infrastructure Energy

Agarwal Industrial Wins Rs 3.3 Billion IOCL Bitumen Tender

Agarwal Industrial Corporation rose 3.84 per cent to Rs 945.65 after announcing it had secured a prestigious tender from Indian Oil Corporation (IOCL) worth Rs 3.3 billion.In a regulatory filing during market hours, the company confirmed it had won the tender to supply Bulk Bitumen (VG-30 and VG-40 grades) to IOCL’s Kakinada locations.The firm quantity under the award totals around 60,500 tonnes across 11 parcels, while the optional quantity is approximately 33,000 tonnes across six parcels. This brings the total awarded quantity to roughly 93,500 tonnes. At current market prices, the firm o..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?