Ceres Power shares sank on Friday after the clean energy group reported a 26% drop in half-year revenue to £21.1 million, down from £28.5 million in the same period last year.

The decline was largely expected. Management had warned that 2024’s figures were boosted by significant one-off licence revenue from its Delta partnership agreement—a windfall that wouldn’t repeat this year. Sadly, these sales fell away from the top line in the first half.

Despite the revenue drop, Ceres’ balance sheet looked strong with cash and short-term investments of £104.1 million. The company even managed a positive cash inflow of £1.6 million during the period, thanks to tighter working capital management.

Gross profit fell 27% to £16.6 million, though margins remained healthy at 79%, underlining the asset-light nature of Ceres’ licensing model.

Commercial momentum builds

Investors should be most interested in Ceres’ commercial progress. July marked a watershed moment when South Korean partner Doosan became the first to enter mass production using Ceres’ solid oxide fuel cell technology. Applications span AI-driven data centre power and marine auxiliary systems—with royalty streams set to flow once commercial sales begin.

Meanwhile, Shell’s megawatt-scale electrolyser went live at its Bangalore facility, achieving industry-leading efficiency of 37kWh per kilogram of hydrogen produced.

Delta, another key partner, has committed roughly £170 million to manufacturing assets for large-scale hydrogen energy solutions. Thermax has opened its HydroGenx Hub in India, whilst Denso continues hitting technology transfer milestones.

Outlook cautious but optimistic

Looking ahead, Ceres expects full-year revenue of around £32 million—though late-stage negotiations on a new manufacturing licence could boost this figure if successful.

“We are seeing an unprecedented change in the market with an acute need for power to service the demand of AI-data centres and increased electrification of society which represents a major market opportunity for the business,” said Phil Caldwell, Chief Executive Officer of Ceres.

“The emergence of this market has coincided with Doosan’s start of mass manufacture of Ceres-based products and marks a key inflection point as we transition from being an R&D-led organisation to a commercially focused business.”

Gulf Keystone Petroleum has signed agreements with Kurdish and Iraqi governments to restart international crude exports from Kurdistan via the Iraq-Türkiye Pipeline.

Pipeline exports from the Shaikan Field are expected to begin within days.

The restart follows compliance with Iraq’s 2023-2025 Budget Law while preserving Kurdistan’s Production Sharing Contracts. During an interim three-month period, oil companies will receive compensation covering production and transportation costs. Gulf Keystone expects improved realised prices above $30 per barrel, up from $27-28 in local sales.

Iraq’s SOMO will transport crude from Fishkhabour to Ceyhan, with sales at Kirkuk blend prices.

“The restart of Kurdistan crude exports via the Iraq-Türkiye Pipeline is a historic milestone for Gulf Keystone, Kurdistan and Iraq that is expected to unlock significant value for all stakeholders,” said Jon Harris, Gulf Keystone’s Chief Executive Officer.

“A return to international sales prices will be transformative for the Company’s cash flow while we believe the signed agreements with the KRG and FGI, along with the Production Sharing Contracts, will facilitate long term profitable investment in Kurdistan’s oil and gas reserves, of which the Shaikan Field accounts for a significant portion. We are delighted to have reached this successful resolution and are looking forward to the future as we remain focused on driving value for Gulf Keystone shareholders.”

The company continues negotiations with Kurdistan’s government over outstanding receivables from October 2022 to March 2023.

The FTSE 100 fell on Thursday amid a Europe-wide equity retreat, and London’s leading index factored in a raft of stocks trading ex-dividend.

“There was a sea of red across European markets as healthcare, real estate, financials and industrial stocks were out of fashion,” said Russ Mould, investment director at AJ Bell. 

“Weakness in names such as HSBC and AstraZeneca would suggest a more cautious tone among investors, but not a complete shift in sentiment.”

London’s leading index was down 0.4% at the time of writing.

There were more severe declines in Europe, as German consumer data continued to show negativity that pointed to a possible slowdown.

“The biggest downside moves were seen in the German DAX and French CAC which were down 0.7% and 0.6% respectively as lunchtime approached. The Swiss National Bank left its key interest rate unchanged at zero, as expected,” explained David Morrison, Senior Market Analyst at Trade Nation.

“The German GfK Consumer Climate survey was also broadly in line with forecasts. It continues to indicate a fair amount of pessimism amongst those surveyed. The index has been stuck deep in negative territory for the last four years.”

The rip-roaring rally in US stocks shows further signs of a pause, and the S&P 500 was heading for a weaker open, albeit a minor one compared to recent gains.

Stocks trading ex-dividend were among the top FTSE 100 fallers on Thursday, with Phoenix Group losing 5%.

There were also more declines for Ashtead and ConvaTec as the pair posted a second session of notable losses.

JD Sports recovered some of yesterday’s losses caused by their interim results as the group began a £100m share buyback programme.

Rio Tinto was the FTSE 100’s top riser with gains of 2%.