Product sales totaled $39.9 million for the fourth quarter of 2017 compared to $8.4 million for the fourth quarter of 2016.
The increase primarily reflects partial deliveries under a 20 megawatt order to a South Korean construction company for a utility project to be owned by Korea Southern Power Company, with deliveries beginning in the fourth quarter of 2017 and concluding in the first quarter of 2018.
Moving further down the income statement, the gross profit generated in the fourth quarter of 2017 totaled $3.2 million and the gross margin for the fourth quarter of 2017 was 6.6%, compared to a gross loss of ($0.5) million incurred for the fourth quarter of 2016 and a gross margin of (1.9%) for the fourth quarter of 2016. Meanwhile, operating expenses were unchanged year/year.
The company had a contract backlog totaling approximately $554.2 million as of October 31, 2017 compared to $432.3 million as of October 31, 2016.
Project awards noted...
Project awards that were not included in backlog as of October 31, 2017 include the 39.8 megawatt LIPA selections, the Toyota Hydrogen / BioMAT project, and the 20 year service agreement supporting the 20 megawatt Korean utility project. These awards in total represent approximately $1.05 billion of future revenue potential if ownership of the project is retained by the company.
Overall, the company is reporting record backlog and project awards of $1.6 billion.
The company also noted that shipments begun in the fourth quarter of 2017 and completed in the first quarter of 2018 for the 20 megawatt Korean utility project are to be owned by Korea Southern Power Company.
Installation of this project is now in process. The company will begin commissioning activities in the spring of 2018 and the plant is expected to be operational in late summer 2018.
"We are well-positioned for delivering projects in 2018 supported by expanding backlog and announced project awards that exceed $1.6 billion," said Chip Bottone, President and Chief Executive Officer, FuelCell Energy. "We are continuing to pursue large projects on a global basis."
Following quarterly results and some color going forward, shares of FCEL are trading 15.1% higher at $2.13/share.