FCEL stock continues to move higher for the third straight session and is up another 50% following FuelCell Energy (NASDAQ:FCEL) announcing its key performance updates.
Performance Update
This morning, FuelCell released performance data of power plants in a fuel cell park located in Incheon, South Korea. The important thing about the fuel cell park is the eight SureSource 3000 power plants, which were developed by FuelCell Energy and are maintained by the company as well. The company released the data in a press release this morning, and the highly encouraging data resulted in a significant rally in its stock.
The data that has emerged from South Korea is definitely encouraging. The data encompasses performance after a full year of operations, and the company stated that the targets that had been set under the terms of the contract have, in fact, been exceeded. The two metrics in question were electrical output requirements and heat output requirement, both of which were exceeded by 22% and 26% respectively. That is a highly encouraging sign for anyone who has been tracking the company for any length of time.
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FCEL stock surged by as much as 50% at $0.82, and it is definitely going to be a company that is going to be watched closely by investors over the next few weeks.
The reason why this update is being hailed with such positivity and optimism is not only due to the fact that the targets have been exceeded comfortably. Such a performance almost guarantees that FuelCell’s contract with the operator of the fuel cell park in South Korea will be extended. In turn, that will bring in more revenues. In addition to that, the most important reason is that at a time when many countries are looking for clean energy, such performance from FuelCell will raise its stature as an energy company of repute and could result in more such contracts from other countries.
After today’s rally, FCEL stock has soared 350% since Monday on massive volume. However, it is important to note that the stock is still down 87% for 2019.
Featured image: DepositPhotos © poznyakov
