FuelCell Climbs on NRG Energy Agreement, Smaller LossChristopher Martin
FuelCell Energy Inc., the biggest publicly traded U.S. fuel-cell manufacturer, rose the most in three months after its backlog doubled and it announced a co-marketing agreement with NRG Energy Inc.
FuelCell rose 11 percent to $1.36 at the close in New York, the most since June 3. The shares have gained 48 percent this year.
NRG, the largest U.S. independent power supplier, agreed to market fuel cells to end users including hospitals, universities and other large electricity users, according to a statement released after the close of regular trading yesterday.
Electricity consumers may purchase the systems from Fuel Cell, or they may opt to buy only the power from fuel cells that NRG will own. FuelCell will build and operate the systems, which convert convert natural gas into electricity through a chemical process.
FuelCell’s net loss in its third fiscal quarter narrowed to $5.6 million, or 3 cents a share, from $9.9 million, or 6 cents, a year earlier. Revenue for the quarter ended July 31 rose to $53.7 million from $29.7 million, the Danbury, Connecticut-based company said in a statement after the close of trading yesterday. The company’s backlog doubled to $380.8 million.
FuelCell Chief Executive Officer Chip Bottone said the agreement with NRG will “lead to meaningful order flow.”