![]() ![]() Ordinarily, I’d be all over a big dividend. AMC is already waving sounding alarms, with AMC CEO Adam Aron warning investors that AMC could run out of cash in 2024 or 2025 if it can’t raise equity capital. ![]() But are there enough “Barbienheimer” weekends to sustain a movie theater chain? I don’t think so.Īnd that’s even before you consider the Hollywood strikes that will slow down movie production. Most movies don’t open on a streaming service, but you can afford to wait if you’re patient.ĪMC is betting that people will be eager to go to the theater – and to its credit, both Barbie and Oppenheimer opened to huge crowds and glowing reviews. People are more inclined to watch a movie at home via a streaming service than to go to a theater and pay $50 for a seat, popcorn and drinks for a similar experience. The movie theater chain saw its stock run from less than $3 to more than $55.ĪMC is plagued by the facts of life in the 21st century. The first quarter of this year saw a gross loss of $69.3m at a margin of minus 33%, despite revenue increasing by nearly 50% year-on-year.AMC Entertainment (NYSE: AMC) went along with GameStop as a meme stock favorite. Last year, the company had more than $700m in revenue, but a loss of nearly $200m. While the company last turned a profit in 2019, when it made $27.9m, but the following year it saw a loss of $469m.Īnd while 2021 saw a less catastrophic loss of $171.3m, the company has still not returned to breaking even. Plug announced in January 2021 that it would invest $125m into its Rochester plant, while its green hydrogen production facility in Georgia is expected to cost $84m to build.īut the company has struggled to match its annual revenue to this investment into new capacity and other operating costs. This ramp-up was noted as adding to Plug’s higher fixed costs absorption in Q1, according to a letter to investors, with the company expecting “continuous improvement throughout the year as we reach full production capacity at our new manufacturing sites”. 'Wilful and malicious' | Texas firm accuses Plug Power of stealing its hydrogen liquefaction secrets, sues for millions “I believe this factory itself could produce that amount,” he said, referring to the company’s newly opened Rochester facility, which has 2.5GW of capacity - although production is in the process of ramping up to 100MW per month. This includes shipping 5GW of electrolysers a year by the beginning of next decade. Marsh reiterates Plug’s longer-term target to produce 2,000 tonnes a day of green hydrogen production and 10GW of manufacturing capacity for fuel cells and electrolysers by 2030. Since Plug’s “focus from the start has been on green ”, the company is “well-positioned” to take advantage of the PTC, Middleton says. While Marsh anticipates a quarter of this year’s revenue to come from Europe, policy support in the US such as the Bipartisan Infrastructure Law and, in particular, the Inflation Reduction Act’s clean hydrogen production tax credits (PTC), “puts America to be the leader, unmatched globally”. ![]() Plug Power to invest $365m in Korean gigafactory as part of previously announced joint venture Subsidies due to come into force in Europe and the US this year are another reason for Plug’s bullishness. “To support our growth, we have built a strong differentiated platform that will enable us to meet our targets, including a broad foundation of technologies that enabled early adoption, deep relationships with multiple industry leaders across many sectors, new investments that are expanding our geographic and industry footprints, and a strong cost discipline that continues to drive down the total cost of ownership,” said Plug chief financial officer Paul Middleton. The company expects about $780m of revenue from the sales of electrolysers, liquefaction equipment and hydrogen fuel, with about $620m coming from H 2 applications such as its traditional business in fuel cells for forklifts, new stationary power generators, and an expansion into vans and trucks through its joint venture with Renault, Hyvia. Simpler regulatory ride? | Plug Power plans three green hydrogen plants in Finland totalling 2.2GW ![]()
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