FuelCell Energy (FCEL) - Get FuelCell Energy, Inc. Report shares were higher Tuesday after the clean-power producer and storage company said it "emphatically denies" allegations made by a short seller that it had lost two contract awards.
Shares of the Danbury, Conn., company were at last check 6.4% higher at $2.01.
FuelCell Energy shares had tumbled on Monday after Night Market Research said it saw a potential 70% downside and claimed the company may have lost two of its largest generation-contract awards.
"We see no evidence of this being disclosed to investors by FuelCell," Night Market Research said. "Instead management has represented that the awards are nearing power purchase agreements."
In a statement, FuelCell Energy said it had become aware of claims made by an apparent short seller "that are misleading and contain factual inaccuracies."
"FuelCell Energy emphatically denies these claims related to its disclosures with respect to the LIPA 2 and LIPA 3 power project awards," the company said in a statement, referring to the Long Island Power Authority.
"These awards are not, and never have been, part of FuelCell Energy’s backlog, and have no impact on the company’s 2022 financial goals, including revenue growth and adjusted [earnings before interest, taxes, depreciation and amortization]."
FuelCell said that its LIPA Yaphank, N.Y., project, which is currently under construction and for which there is a signed power purchase agreement, is included in the backlog and 2022 revenue projections.
"The company believes these projects should move forward and it has continued to pursue them in good faith," FuelCell Energy said. "However, there can be no assurances that any project awards, including these project awards, will result in executed power purchase agreements."
FuelCell Energy said it did not believe the New York Climate Leadership and Community Protection Act should negate the LIPA 2 and LIPA 3 awards and is disputing this contention by LIPA.
The company said that "when the company has material information to disclose as required by the rules and regulations of the Securities and Exchange Commission, the company does so."