The battery manufacturer FREYR Battery is apparently in acute financial trouble. Although the decline in the past quarter was smaller than before, the quarterly figures leave little room for optimism.
• FREYR Battery disappoints with numbers
• Loss contained, but still no revenue
• Cost reduction measures necessary
New company news has caused massive disappointment among FREYR Battery investors. The quarterly balance sheet published the day before was only good at first glance.
Minus reduced, but still no sales
In the third quarter, the battery manufacturer remained deeply in the red. Earnings per share were -0.07 US dollars, which was lower than experts had previously feared. Analysts had previously expected negative EPS of $0.30. In the previous year there was a loss of $0.80 per share. The bottom line loss was $9.79 million, compared to a loss of $93.9 million a year ago. For the full year, FREYR expects a loss of $129 million.
However, a look at the sales shows how bad things really are for FREYR: The company did not generate any revenue in the last quarter of the year, even though a mini-sales of three million US dollars is expected for the year as a whole. In 2024, the aim is to achieve sales of 52 million US dollars, according to the quite optimistic outlook from FREYR management when publishing its balance sheet.
Expenses for prestige objects are capped
However, the news that FREYR has decided to “minimize spending on Giga Arctic in 2024” was even more disappointing on the market. The battery factory in Norway was considered a prestige object and was a beacon of hope for many observers. In the previous quarter, FREYR received 100 million euros from the European Union’s innovation fund for this purpose. Investments in the factory should now be minimized and at the same time the European government will be asked for further subsidies.
The company will also “adjust the size of the organization” as part of broader cost-saving measures. The company promises that this should lead to a “total cash burn of less than half of 2023” in 2024.
FREYR Battery shares at all-time lows
Investors were massively unsettled after the publication of the balance sheet and fled FREYR Battery shares in droves. The share ultimately lost 38.21 percent in US trading on Thursday and fell to a new all-time low at $2.077. The price slide also continued in trading on Friday: on the NYSE, FREYR temporarily fell a further 17.63 percent to 1.7050 US dollars. In the year to date, the losses add up to more than 80 percent.
Editorial team finanzen.net
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