Westport Fuel Systems Inc. (TSX: WPRT) (Nasdaq: WPRT) took a big hit during its last fiscal year.
The Vancouver-based company revealed Monday in its latest financial report that its net losses reached US$49.7 million in 2023.
This was a nearly 52 per cent increase compared with 2022. The company reported revenue of US$331.8 million in 2023, an 8.5 per cent increase from the previous year.
Westport Fuel Systems is a global supplier of fuel-delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane and hydrogen to the transportation industry.
"Despite challenges last year, we achieved new milestones, evolved strategically, and prioritized operational efficiency and financial strength and, in doing so, we generated record revenues,” said Dan Sceli, CEO of Westport, in a statement.
Westport attributed the 2023 revenue mainly to increased sales in its delayed original equipment manufacturer (OEM), electronics and fuel storage businesses; and engineering service revenue from its heavy-duty OEM businesses.
However, Westport said growth was partially offset by the lower sales in various areas, including lower compressed natural gas (CNG) sales volumes in the Indian market, the independent aftermarket in Africa and the hydrogen business.
The company’s highlights in 2023 include earning a contract valued at US$33 million with a global heavy truck manufacturer, signing an investment agreement to form a joint venture with Sweden-based Volvo Group and entering new markets with a two-year H2 HPDI proof of concept project. H2 HPDI equipped engines are optimized to run on hydrogen.
“The alternative fuels industry is becoming more dynamic, driven by increased investment, industrial applications and policy support,” the financial report stated.
There are around 1,400 hydrogen projects that have been announced globally, with investments totalling US$570 billion and 45 million tons per year of clean hydrogen supply announced through 2030, according to Westport.
“Over the same period, hydrogen is expected to not only become more available but also more affordable.”
