U.S. company Plug Power, the main owner of which is Russian generating company OGK-3, posted $27.45 million in net losses for 2011, down 41 percent from $46.95 million for the previous year, Interfax reported.
Plug Power develops fuel cells and eco-friendly energy products. Its main revenue is provided by the sale of fuel cells to large logistics centers.
Plug Power posted $7.1 million in net losses for the fourth quarter of 2011 compared with $8.6 million in the same period of 2010.
The company has been posting losses for several years but was expected to post profit for 2011. However, company head Andy Marsh said profit would likely be posted by the end of 2012 based on the results for the third quarter of 2011.
The company’s sales revenue for the fourth quarter increased 90 percent to $11.8 million and for 2011 it was up 40 percent to $27.6 million.
The company’s funds and their equivalent at the end of 2011 stood at $13.9 million compared with $21.4 million at the start of the year.
The company received $46.1 million in orders for 2011, including $18.1 million for the fourth quarter.
Interros and Norilsk Nickel purchased a stake in Plug Power in 2006. Two years later, they sold the stock to OGK-3, which at the time was controlled by Norilsk Nickel but subsequently came under the control of Inter RAO. This deal raised questions at Russian regulatory agencies about how OGK-3’s shareholders were gaining proceeds from the implementation of its investment program.
Plug Power has been showing losses for the past several years, but in 2011, the management expected noticeable improvement in the situation due to growth in the number of fuel-cell delivery contracts. OGK-3 spent $33 million for 33.45 percent of Plug Power, but that stake decreased to 19.4 percent last year when additional shares were issued.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
