Shares in Ballard Power Systems (BLD.NASDAQ) fell 7.6% to US$1.83 after the company canceled contracts with China’s Azure Hydrogen due to “material breaches”, Bloomberg reported, citing a statement from the company. Ballard had expected to receive about US$7.5 million from the Chinese company during the fourth quarter, but now doesn’t expect to book any revenue for the quarter under two contracts with Azure, will record an impairment charge of US$4.5 million for outstanding receivables. Ballard is also considering legal action.
Categories