BRUNNTHAL (dpa-AFX) - Fuel cell supplier SFC Energy has again raised its forecast for the current year due to continued high demand. In view of the expected deliveries and the current order backlog for the fourth quarter, management expects even higher sales for 2023. In addition, the operating result is expected to reach the upper end of the previously targeted range, as the company announced in Brunnthal near Munich on Wednesday. Investors responded positively to the news.

The SFC share price rose by more than six percent to 20.95 euros in the morning after the start of trading and at times reached its highest level for almost two months. In the early afternoon, the share was still up around one and a half percent, placing it in the middle of the mid-cap index SDax. Compared to the turn of the year, the share has lost around a fifth of its value.

Analyst Malte Schaumann from Warburg Research was not surprised by the raised forecast for the year. He even sees room for improvement due to the low profitability implied in the final quarter. However, the figures for the third quarter were better than expected.

SFC now expects to achieve sales of between 115 and 117 million euros. Previously, the management had only forecast 107 to 111 million. Last year, sales amounted to only 85 million euros.

Adjusted for special items, earnings before interest, taxes, depreciation and amortization (EBITDA) are now expected to reach 13 to 14.1 million euros. This means that the management now expects the upper end of the previously targeted range. The lower end of the range was previously significantly lower at 10.5 million.

According to the Group, it is continuing to work on efficient cost structures. However, the regional expansion initially required expenses, it added. These costs could have a negative impact on the operating result in the fourth quarter. In addition, lower sales volumes and a weaker euro could have a negative impact.

In the third quarter, SFC increased sales by 21 percent to 31 million euros compared to the same period last year. Of this, a good 4.6 million euros remained as earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) adjusted for special effects, an increase of 8.4 percent. However, the corresponding margin (adjusted EBITDA margin) fell from 16.6% to 14.9%.

The surplus fell by around 35% to 3.2 million euros. In the previous year, the reversal of provisions for share-based employee remuneration had boosted earnings more than this time.

SFC grew particularly strongly in the Asian market in the third quarter and in the year to date. The company generates the majority of its revenue in North America. For this reason, these two regions will continue to be the focus of the Group's expansion strategy in the coming year, explained SFC.