Charbone Hydrogen posts revenue growth, cuts costs ahead of green hydrogen facility launch

Charbone Hydrogen posts revenue growth, cuts costs ahead of green hydrogen facility launch

Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF) saw its annual revenue rise 15% in 2024 as it progresses towards launching green hydrogen production at its Sorel-Tracy facility in 2025.

Revenue climbed to C$325,753 for the year ended December 31, 2024, up from C$282,724 in 2023, driven by continued contributions from its Wolf River hydroelectric operations.

Those figures come despite a temporary reduction in service caused by equipment failure, Charbone noted in a statement.

The Quebec-based company also trimmed spending by 16% to C$2.47 million, citing a refocus of its activities and tighter control of general and administrative costs.

Charbone has now secured all necessary permits for the Sorel-Tracy plant, and provincial utility Hydro-Québec is completing interconnection work. The facility’s upgraded electrolyzer capacity has been increased to 1.75 megawatts, and the company made a deposit for two additional 2.5MW units, it said.

The plant will be a key component in building out its envisioned North American green hydrogen network.

CFO Benoit Veilleux told shareholders that Charbone’s efforts to strengthen its balance sheet have been “focused and deliberate.”

Charbone raised a total of C$1.77 million in private financings during the year, up from C$1.26 million in 2023, and received an additional C$889,494 through warrant and option exercises. It also settled C$352,214 in debt through the issuance of units.

To support future growth, Charbone completed a C$2.1 million unsecured convertible note financing with a three-year term and 12% annual interest, convertible at a price no lower than C$0.10 per share. It also restructured and extended the terms of C$1.2 million in secured convertible debt.

Veilleux added,

Ongoing talks with strategic partners are advancing well to support and execute Charbone’s growth potential,

Investors welcomed Charbone’s report, sending its shares 9.1% higher late morning on Wednesday. 

Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) is expected to deliver a modest revenue and earnings per share beat for the first quarter after Wednesday’s closing bell driven by healthy advertising trends and tight cost controls, analysts at Bank of America believe.

They wrote,

We think Meta’s AI-driven ad improvements still have several quarters to play out and for 2025 we see strong drivers of growth,

The analysts wrote that constructive checks support their view that Meta’s first-quarter revenue will land at the high end of its $40.5 billion to $41.8 billion guidance range.

They forecast Q1 revenue of $41.2 billion, slightly ahead of Street estimates of $41.4 billion, and expect earnings per share of $5.42 versus consensus at $5.24.

Workforce reductions earlier this year, including layoffs in the Reality Labs division, are also seen as contributing to a tighter cost structure.

Analysts wrote,

Management seems focused on controlling operating costs,

Meta’s second quarter guidance will be a key focus, Bank of America added. They believe foreign exchange benefits and leap year effects could lift revenue growth by four percentage points quarter-over-quarter. However, they also flagged slowing China retailer ad spend as a headwind, estimating it represents around 3% of total revenues.

They projected Meta to guide revenue in the range of $40.5 billion to $44 billion, representing year-over-year increases of 4% to 13%. “We expect some conservatism in Q2 guidance,” they noted.

On expenses, Bank of America sees the potential for Meta’s full-year cost trajectory to move toward the lower end of its $114 billion to $119 billion forecast range but does not expect an official revision on the company’s earnings call.

The analysts repeated their ‘Buy’ rating on Meta with a $640 price target. 

Shares traded hands at about $540 late morning on Wednesday.

– Updated with share price movement – 

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Charbone Hydrogen posts revenue growth, cuts costs ahead of green hydrogen facility launch, source