Ceres Power Share Price Starts the Year Down but Within a Range

The Ceres Power Holdings plc (LON: CWR) share price was trading down a maximum of 5.85% but was still within a tight trading range that started in early December 2023. The company’s share price fell to start trading within the current range after it warned that its annual revenues might miss the set targets. 

The sustainable energy company revealed that it was still in talks with various potential customers but warned that it expected the talks to result in signed deals in the new year. Hence, the potential revenues could not be recognised within the 2023 financial year. 

The Ceres Power share price has fallen 50.10% over the past twelve months as the company failed to meet investor expectations. The current sideways trading range indicates that investors are undecided regarding whether the company’s share price should rise or fall, but this will not last forever. 

The company now expects its full-year 2023 revenues to come in at around £20 million to £21 million, from £22 million in FY22. The firm’s lofty valuation had been a cause for concern in the past, given its meagre revenues. This means its current market capitalisation is better aligned with its intrinsic value. 

Ceres Power has zero debt and cash balances worth £161 million, giving it sufficient runaway to continue developing its products without raising more capital from the markets. The company has a solid roster of products related to hydrogen energy, including a proprietary solid oxide fuel cell and related electrolyser. 

Demand for the company’s products is set to increase as global trends towards adopting clean energy sources ramp up in the coming years. The company has a low-cost operating model as it licenses out its technology instead of being involved in developing and selling its SOFCs and electrolysers. 

Ceres Power CEO, Phil Caldwell said: “Despite good progress commercially and growing interest in our SOEC technology, we have not been able to conclude a new license partnership in this financial year. We remain confident of securing a new commercial partnership in the coming months, and we will provide a year-end trading update in January.”

Ceres Power share price. 

The Ceres Power share price was trading down 5.85% at 173.80p from Friday’s closing price of 184.60p.