Energy
FuelCell and POSCO in Korea: When Contracts Really Add Up (FCEL
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FuelCell Energy Inc. (NASDAQ: FCEL) is screaming higher in early trading before the bell, and it is easy to see why. The company announced that POSCO Power ordered 30.8 megawatts of FuelCell Energy modules and components, with estimated value of $58 million. This won’t help in the immediate future, but this adds to future orders.
South Korea’s leading independent power producer ordered 30.8 megawatts of FuelCell Energy Direct FuelCell modules and components for delivery during 2010 and early 2011. POSCO Power and FuelCell Energy also signed a Memorandum of Agreement, where both companies agreed to pursue a licensing agreement to allow POSCO Power to assemble FuelCell Energy cell and module components into stack modules for sale in South Korea.
POSCO Power will also purchase $25 million in FuelCell Energy common stock at $3.59 per share, which represents the 10-day average of FuelCell Energy stock) upon the finalization of this agreement.
As far as using this for a total comparison in size, FuelCell did $100.7 million in fiscal 2008 and analysts are looking for sales of $115 million in 2009 and $182+ million in 2010.
We had shares up 17% at $4.84 right before the open after closing at $4.06 yesterday. The 52-week range is $1.98 to $9.25.
Jon C. Ogg
June 9, 2009
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