The financial performance of Fuel Cell Energy (FCEL), which has been mired in a protracted losing streak, improved in the first quarter.
Net loss eased more than estimated and reached a historical low aided by a surge in revenues, led by product sales, and tax-related gains.
After the news, shares of the energy solutions provider gained more than 4% in early trading hours Thursday.
The company is hopeful that the recent execution of certain legislative bills would help it expand market share, for they are expected to bring significant capital investment to the sector.
“We continue to see favorable momentum in our marketplace, both in U.S. federal policy and with project execution and development. The signing of a PPA with Bolthouse Farms extends our relationship with a long-term customer Campbell Soup Company,” said Fuel Cell CEO Chip Bottone.
First quarter loss narrowed to $0.12 per share from $0.39 per share last year. In addition to strong revenue growth, the bottom line also benefited from an income tax benefit of about $3 million.
Revenues more than doubled to about $39 billion during the quarter, owing primarily to a surge in product sales reflecting completion of deliveries for a utility project to be owned by Korea Southern Power Company.
Commissioning of the project, the installation which is currently progressing, is expected to begin in spring. The plant is scheduled to be operational in late summer.