WPRT - Earnings call transcript Q3 2021 | Westport Fuel Systems Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. This is the conference operator. Welcome to the Westport Fuel Systems Third Quarter 2021 Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Westport's turn Investor would to conference I Tweedy, Christian Relations Instructions] like the to over [Operator representative. Please go ahead, Mr. Tweedy.

Christian Tweedy

Richard Welcome Chief which of Systems Officer, to On today's Good XXXX Westport Systems financial release Fuel everyone. to is Financial distributed Systems Fuel Johnson, Orazietti. Fuel David morning, yesterday. coverage Third containing Conference Westport Call, Executive with being is is coincide held call Officer, Chief results being and the press Westport Quarter on behalf

You constitute reminded made of and materially forward-looking uncertainties. in this within and are are securities certain that in may statements based from results to those Actual meaning projected forward-looking Canadian made conference statements expectations responses involve our on laws. certain various call such, current statements. the differ And U.S. the forward-looking risks and and applicable questions as may statements our

statements. this call qualified are not public on you to place on the the in will entirety subject filings. and David. reliance to deal is Company's I in now Information those in information contained call turn You over contained by its cautioned conference

David Johnson

for Christian. Third to review results joining morning, Quarter everyone. us Thanks, Fuel Systems of Thank for Westport Good you XXXX. the

do our to greenhouse quarter effectively Conference, for available Systems, that impact Globally, quickly, we products drive so are of emissions. helping now. playing We economy Fuel do XXXX transportation and for Glasgow that options in meeting this facing and in products leaders world clean important to our with for As COX, of today must future affordably. gas the to reduce an COPXX. UN must well-known decade Climate transportation continue take already We Westport pronounced all. to and future. clean responsible a increasing nearly make use mix what roads a need the to crisis global in to the in transportation We our affordable, the to all into and role for shift is with our dramatically sector need each carbon an will Change climate We're At as confident and action a we're on impact continue know reducing enable next. an and prosperous we technologies increasing so

fueled I'd years LNG with some reduction more HPDI, a more from our to tons making the hydrogen HPDI market highlights quarter with few when COX take attention through will foreseeable you carbon issues detailed we recent be our continuing Fuel highlighted is our made Europe, respond lower These report draw production, now, share to intensity come. by our of and and diesel fuel. financial review performance. dramatically will our Already our our we we've the gas by by Additionally, gas these emit neutral technology. into can to bioLNG footprint. of tangible Westport reduce Richard to products. XX% future have continue producing today, part and ESG trucks in powered our carbon trucks fueled emissions this avoid are use improvements insights, that operational and do to diesel on your impact COX. and carbon to of Furthermore, will and forward Systems low operational tons COX for know with a then good by operations are greenhouse to year-over-year. bioLNG, emissions green contribution look Without XX% in results, HPDI to engines, greenhouse and a powered LNG challenge of a trucks to producing fuel, will make avoided biggest of the thousands sales to there These HPDI our increase to third QX like is and carbon and

other challenging The Company's automotive entire the challenges negatively was sector. semiconductors we us improving the third supply Global it the the and end-user quarter OEM performance, chain are for expected not and as for but Tier-X industry. able 's was to in suppliers commodities for as products. an demand considering affecting as strongly Despite this, were post in strong trend for other we our

Our HPDI the generated in Despite delayed independent aftermarket by compared to up XX OEM challenges, sales forecast same million constrained in were than XXXX. these QX, we of XX% and production. lower period revenues

chain volumes, million combined caused $X.X due quarter. expenditures, higher sales with this lower-than-expected and to loss vehicle However, to us incur supply R&D of operating shortages production net and the a

a transportation Europe other our on up QX $XX and stations an advantage we believe global will contribute footprint as remain million -- potential Europe financial chain, year transport. acquisition and by alternative to long-haul, supply recently create last production continues reduced biogas important In million offer LPG manufacturer QX last infrastructure introduced a systems. the the for sector. in alternative fuel Quarter, our in refueling volume, from QX much Spain, year, of in now X,XXX $XX circular support in the of Germany, gas nearly continues rebounded ongoing we clean global as products grow. The to no and sales headwinds alternative be higher customers sustainable for the bioLNG recently competitive support of HPDI our to our segment OEM OEM Third they solutions. and and growth reduce to heavy-duty OEM of delivers our for light-duty for vehicles, leading adopt remains our in will expect been that trend. key in market for shown The use of to well-to-wheels a basis. the stations NGVA fuels driver there are Italy, increase XX% LNG with alternative Stadco, and revenues transportation to storage XX% energy confirm fuels Despite Europe. XXX to to while long-term are to CNG fuel Our has for today by full-year benefits for be emissions a Sweden The business. European compared reports greenhouse and Europe and supportive, continue across Netherlands There bolstered economy as trucking cost

comparable With of HPDI natural will the vehicles mileage equipped so decades. diesel HPDI fueled high and do on LNG lower performance and running their driving covered carbon heavy-duty for dependent hydrogen, HPDI renewable in overall high engine with deployed historically in to operation, fuel. for by trucks a are continue than the in growth and diesel-engines, and being total of pursuing, green cost Fleet-type at gas RNG, reduction diesel powered applications footprint. the

developed is clean use year-to-date fully and alternative environmental Sales validated products to fully challenges have the European and XX% compared face. respond Europe our Our launch business in grown that partner from fuels built economically on we environmental Customer lower-cost for and XXXX. to and to for continues positive fleets vehicle the and HPDI the for delivers. with include, our due real-world the feedback benefits industry driver, be climate. Real-world performance market benefits benefits HPDI

markets HPDI opportunities expect grow and world. strong in see we the around a We for to QX

with be are business ownership our Instability stable new You even economics outlook decisions there. We gaseous Higher price clean diesel normal prices our return over natural fuel XX experiencing vehicles environmental LNG oil versus economic to of and more gaseous the fields growth a lower-cost desirable. business market may markets the prices meaningful fuel products. truck challenges fuel petrol on are advantages conditions, that a doubled in continue Both expect will also noticed have make fuels and advantage provides between to are as natural offer weeks, traditional the months. support up for last business. the economic A make vehicle lower-carbon long-term of headwinds with surge fuel. driven Due for these markets the that liquid gas fuels for prices by and purchasing gas have those crude strong. energy significantly commodity for therefore buyers to by cleaner-burning, transitory, versus China market recent price alternate we anticipate our an will of our filled Unstable for gas total filled the purchasing to challenges or technologies alternative a of any and in and fuel benefits alternative in potential fuels, prices be advantage support cost creates the creating our energy and prices.

are the of remitted Last a and Oil National Company branch million. not have OEM models systems week, spare endure, vehicle to award they of certified with by field to XX,XXX powered our been to LPG successfully total months of impacting for HPDI the their we next said, While That a value supply Naftal, announced are vehicle are expected with EURX about these XX a tender the customers. Algerian today. Gas ongoing. with nevertheless parts Chai over partner trials launch issued this to product and work segment the way continuing We're

XXXX, LPG XXX more last with are fueled We continuing than acceleration vehicles a have are thousand these be Algeria LPG can on And almost by vehicles million One kits a thousand Naftal, in today, the XXX network supplied relationship in market. LPG the and in supported of doubled XXX vehicles, filling X to will expanded XX% a by of network or over of today. to LPG XXXX filling this the stations. XX% up vehicles from vehicles road, By an projected supported than X There see having figures in clearly more of growth years. stations. this over

implement the was some deployment. government renewable installed by made spend will this the morning annual U.K. ranked necessary support focus to Ernst is which on de to ranks renewable their stations fuel These Assembly, initiatives cost-effective a released production their to & in by top Energy in The up recent to solutions clean, as third trends India a Turning collaboration the by The Hydrogen -UK of our of just how in steps hydrogen country the of boost in strategy now to increase Climate handling occurring aggressive position announced India I the capacity of helped and one recently XXXX. climate country India and Young, India services XXXX as taking as our dramatically of investment XX to their markets to deployment -carbonize. clean government also gas is availability firm the XXXX natural renewable energy UN recently supplier energy of on energy, XXX competitive to the opportunities. to country metric XX,XXX for gigawatts megaton country. to expanding to market, Indian of boost index, highlighting attractiveness wider part pillars Mission on and time X the National their position part leading and and XXXX affordable some roadmap. a working we're energy At resilience by professional want the advance clean transportation. India. to energy clean governments which and Indian General commitments and there, green scale develop that

growth Director implementation already India. our lead Hitendra vehicles, the the X our now from for We'll With couldn't the as With with have Fuel standard he for to President I has of and in our us, far as their market diesel been April demand global requirements increased significantly Senior of emissions onboard joins business. The engines the an are Managing after in have required it broad for XXXX. products where Systems to significant months. as share more growth on Eicher the excited to more pleased expensive gas served that to and in India opportunity vehicles. India Systems, Westport commercial announce Westport less Head far coming be most position has Fuel growth market to and Westport important joined what effective. I'm our more of recently Vice Hitendra cost natural components plans recently is Hitendra important to today have Mishra strong as represents

In with using a our potential The game-changing chance combustion look engines hydrogen a of injection growth machining made long-haul casting X In components, announced natural cells hydrogen for torque, compared applications. April, white OEMS area. and from efficiency operation trucking and Over compelling a we detailing their total for and and leading collaboration Hydrogen. with clean develop HPDI specialist to our is is share we internal we project combustion aims carbon hydrogen industry paths short we more in highly with February, the important In with to that with able more combustion assess diesel goods fuel and important of HPDI HPDI bullish offer and with a HPDI, transportation. X in customers. using technology with durability our the forward amount we affordable the is we ongoing jointly technology HPDI. internal a working near updates In paper time such believe technologies emissions, heavy-duty diesel hydrogen highly improved fuel on engine successful to system. using for collaboration engine engines. with offers July, AVL running and Scania material months, structural AVL we a of the more HPDI combustion lower Being system. last growing, and the robust disruptive, heavy Hydrogen cells we've announced power, demonstration cost achievements casting efficiency March, a engine engine the and gas solution progress our to of power, our targets, using advanced of This internal internal [Indiscernible], January, efficient We project results in most showed TUPY, of the to solution hydrogen of and with OEMS hydrogen highest with offer combustion proud a applications. presented hydrogen the combining the I'm you. engine approach have hydrogen for And engineered in fuel published efficiency engines our and this higher at Interest I'm internal and using with latest our high-pressure of direct our direct announced

capabilities, reduce measures ability by being cost s, and able is emissions sourcing an for by pre Commission increasing package gas Europe capital potential private well both from X a for manufacturing framework engineering rare-earth perspective, the This investments expansion XXXX. manufacturing through outlining European this globally boost stations levels, avoid for the Earlier of neutral hydrogen refueling and core emissions massive XXXX announced OEM the to both to XX% by carbon as fuel and packages, and significant For proposing and batteries. networks. important the our hydrogen for to with -existing along European a metals leverage sustainability XX is as particularly of as target for greenhouse the as renewable sectors hydrogen required for it year, consumption, public eventual fuel-cells and of choice. an to the the an of offers on industry seeing We're support XX% share hydrogen XXXX vital

total hydrogen along the XXX. disclosed Council value X/X billion the Hydrogen bringing XX% their in the by approximately projects, increasing February there Council of increase total is XXXX, into As $XXX these investment, roughly has through of these an The Hydrogen chain by of made since update every [Indiscernible]. in are been midyear announcements global which large-scale considered $X reported the and investments to investments is week. Hydrogen The that the billion projects projects estimate

aware, end all scheduled trend Westport Cummins is you're to XXXX. As XX, center our December

the agreement, Cummins intellectual both had our per joint ventures property. right and Fuel to Westport As Systems equal

continue to We work to joint related the wrap to of with the venture. final Cummins up terms conclusion the

methane R&D this is bio-gas fleet while de easiest, there compelling and produced lot switches, Europe. as to market in from supply reasons for North and like for availability important bio-gas, approach, vehicles, gas carbonization working today. modest hydrogen to operators that engine meet transportation products de been capturing gas, drive are growth. market recognizing And is Is share cost-effective in from Europe. to and -carbonize The technology HPDI extra natural - We LNG part in fossil insights have continued and experience But combustion coverage products most Much bullish our today goals. has American of market. this they the their compelling with naturally are North they'll our still significant a for hydrogen already is green opportunities are looking and fuel make alternative using natural world. can it an believe the on [Indiscernible] of contribution that as two-pronged eventually fleets in engines story major the This heavy-duty why fleets expect needing SI be and and immediate part occurring and will we're large quickest, in way it's The American effort. play fuels long-haul of growing today. sustainability an of important as the reason for We capture this

to Richard quarter third for results. over Now our on more detail

Richard Orazietti

David. you, Thank

described semiconductors challenging impact to of shortage other supply the earlier, materials. had chain the financially As we David due and challenges from operation quarter on a of

for sales margin million approximately on OEM HPDI independent sale $X.X OEM but was and our recently was lower-margin This volumes to which revenues and gross the decrease million chain light-duty the after Our margin our to and lower driven of of OEM This storage offset was of drag XX% market to addition to business. the customers, of $XX million partially higher sales production by of $XX and business. a higher Russian sales were supply decreased on was lower the in to fuel particularly year-over-year, aftermarket year-over-year, the in our acquired is sales businesses. our business. and a mainly also continued mainly volumes partner mix product also, due challenges, gross our a delayed due recovery in initial percentage OEM in continued fleet XX%. by OEM to our sequentially launch And the revenues Indian Gross sequentially from Revenue customers. our customers light-duty comparable independent

was tax million $X.X gain exchange quarter income prior and extended the year warranty by Our prior-year earnings for benefited primarily to equity $X.X of for in coverage heavy-duty compared in million compared compared to net $X.X sponsored lower an development million year-over-year, wage primarily subsidies loss also due income The $X.X Net spending quarter. quarter increase from same research result to million increased in during $X.X last this $X.X of year. recorded financials quarter. $XX and decrease million government for current The million to the income from CWI foreign decreased to in the million expense higher OEM, the was quarter. expenditures the

This and decrease same higher expenses our million, of in due quarter, negative margin adjusted as $X.X gross to to mainly XXXX, a EBITDA the period described $X.X million was compared before. lower

Now storage partially of decrease contributed in the operating offset light-duty the development margin HPDI addition percentage. chain and by businesses, margin offset In year as improvement business, prices, to issues our in by the our for of OEM margin $X.X million to had $X.X $XX the due heavy-duty by Western sales business the quarter shortage driven fuel on was sales $X.X from The headwinds revenues turning partner. increases to delays OEM we in revenue Indian OEM recovers. customers segments. caused storage was revenues we gross production were investment delayed and for the million which European-based on of our our technology the of do OEM and customers. light-duty year remainder reflect from year-over-year, was on in reflects to Despite current the a and million margin to the growth million our by loss supply pressure to volumes trajectory for see OEM and million expect manufacturing revenue prior Gross mentioned. lower our in mainly performance partially semiconductors the compared increased of continued growth quarter. in in the through initial impact gross OEM, to negative launch sales volumes OEM and our the the heavy-duty and year-over-year $XX.X by business Further, year-over-year [Indiscernible] our OEM, The OEM pressure from fuel this higher operational Russian to with comparable from LNG sales OEM,

network. economies grow, volumes will through OEM production, scale our through of sales heavy-duty supplier the our in of As profitability improve

traditional million independent to by the for $XX.X primarily markets. and quarter the lower Now in aftermarket. global compared European turning supply by chip semiconductor third continued the X% to decreased important prior-year the Western quarter caused pressure disruption including shortages to chain, in due Revenue the to sales

volumes percentage million the of emerging from resulting gross to by year-over-year decreased the increasing margin in The was semiconductor chips to sales $X.X margin million XX%. sales lower of $X margin lower margin gross in and quarter supply First shortage this markets. the to decrease for mix due

of could see fourth But improvement spike business to independent continue We in continued segment expect ongoing we independent to of in LPG to revenues aftermarket year. quarter aftermarket prices, the impact shortage the temper recent semiconductors and due in the expectations business. this the from which the

Finally, speak want you to to liquidity. about I

growth our the liquidity and OEM in of past discussed strengthened business our sheet to and balance plans. have quarter, we heavy-duty the As we significantly other our fund business

including was was R&D application investment capacity in equity offering quarter. Since Our million end efforts million products in next-generation the emission performance in third HPDI our we begun cash a debt the have spending our position our the production at our HPDI hydrogen. sustainable profile and align our to to $XXX progress $XX profile. of We're for successful expanding increased -- technology to of our and the marketed our continuing debt in growth of the standards, and in June,

the of During balance convertible remaining support of Development of the loan XXXX common new further from the into debt facility R&D. The and to for shares. fully the with on Export Canada, completion our our waivers of of and growth interest credit partner, into converted commercialization, quarter the bridge this and the loans also the We're convertible term the the our quarter, long-term now in repaid fourth of a in million loan and $XX HPDI to has refinancing in common funding final to EDC agreement anticipation the COVID-XX note year. we We principal banking shares. of of been exercised payments into technologies, stages Cartesian received December final our convert XXth option principal

support of services. appreciative our to it very would liquidity David. Export to HPDI growth and with said Development like the turn that, our bolstering With products of back our I I've fund As to and all Canada relationship we're previously, and

David Johnson

we're supply the this live Thanks, of Richard. the facing last to like chain of issues and focused to we've it remained months To Operator year, key the our world COVID-XX I'm turn With and confident despite for the in recap, the ongoing our delivering. team back questions. plans year. made on your our on committed in, we we're progress challenges to that, business substantial priorities I'd for

Operator

Thank you.

We the Instructions]. question-and-answer begin now session. will [Operator

as a for pause will join the We callers moment queue.

question with from comes The Eric first Please Craig-Hallum. Stine ahead. go

Eric Stine

David. Richard. Hi

Richard Orazietti

morning. Good

David Johnson

Eric. Hi,

Eric Stine

Morning.

obviously, ramping think up working we and them towards and CWI it looking as options about you're at there. So,

curious, that Just to was your the talking to there your that America, a it you're subtle presence commentary in the change you in have in you're release when lead the CWI but obviously able -- or in into HPDI past expected Is share anything about release? we necessarily anything North mentioned related spark ignited. beyond should

David Johnson

Glad Eric. to touch on that,

that by think are by offer market taking that is to fact preferred engines on and read is be -equipped there's playing vehicles critical preferred that engines. in that this into thing Europe -- fleets, there's opening spark out in engines offer where They're on vehicles product. share We comments ignited as drivers. the they're see and mentioned I fundamentally, engines. superior -equipped we the from the with HPDI are HPDI spark-ignited And HPDI

entirely. Having quite so, product settle to around ignited our of world. confident that good perspective, that spark-ignited don't a we want We - sparks dismiss technological lot And technology. also from in position. a I feel is said the products it

through been path in in future. be a North Our CWI new could there the but has weighted historically, America branch southern

watch So, this base.

Eric Stine

partner into America, ideal ideal about America, Or with to HPDI, about, envision you or think North that? coming with you some what potentially, multiple multiple current how it's mean, of it's in when whether Got think just your do Europe, to ways one another think your OEMS. with you Do maybe step-in I be North getting And or it. then path? out terms would taking

David Johnson

market preferred successfully. with the path and or my is to partner quickly strong partners, Well,

product and promotes and But important drivers is be around a of because offers will it run, when getting what So, to I right it the it I HPDI. partner in the in the for having supports look long environment that there expect of us. a the offering companies world at combination. lot fundamentally, and

Europe well I that play America so, out as in you'll think and And China. as see in North in also

Eric Stine

as obviously they the part We'll about one your included, electrification tuned gets think Okay. on huge Maybe last do playing stay a so past, we But general talked as it's maybe but also gashes, electrification maybe seem business, out that their it I your about thoughts that. the how all in focus. amount might light-duty is OEMs, of notice even just electric. overall press, they on can of have have fuel that be

David Johnson

a in terms years or of expect and now, I whether solutions when from fuels persist diversity Yes. Great for and now long, they're talk year briefly I just we happy that diversity go probably look a question. too to future, I'm applications. transportation world I have of the topic the solutions it's on to Eric, in technologies. And to from today, XX so, And think but way on and because a diversity of of

we And need a need they're demanding technologies dump And car, what for is an that fuels. in have in a car, economy for need a need drive boat, what for you for So, what truck, a a world what solutions. a you differences for train, and what you small for differences you large those different. you need what all transportation

solutions market diversity cases grow everything the and So, front continuing while quietly in seems only can gaseous else. to so way cases, in -- any public We're electrification. thing of the out expect demand and share electrification of and In some in that I media to this talk vehicles. be anyone about and

and -- week then on afford world can that places afford are mapped I last need it see announcement, evidence out the but we've our see it in and not and the so solutions, electrification. customers places can't the in and today we exclusively see heard that continue you those about same that do will we And our frankly, basis, that our think, OEM especially would And can't afford are to markets, in the we to opportunity there way. So, it more in those say that. and markets, there provide

world and gas-fuel to today in find the business be customers. electric a of of important and foot very some makers their their their largest the vehicles part of marketplace their the in and have offerings compelling to So, that also

Eric Stine

Thanks, David. Okay.

David Johnson

you. Thank

Operator

comes question Oppenheimer. ahead. next with The Please from Colin go Rusch

Kristen Owen

morning. follow-up Good, Actually, taking Kristen like -- questions. the as with of you Thank to good is light-duty there opportunity, follow-up I'll to Colin. start about technology on morning. you're diversity into opportunity to fuels. is of prior the the to then the for This hydrogen I'd with question, for that an just you some And overall a on a vehicle? [Indiscernible] for thinking start

David Johnson

Yes, so in hydrogen vehicles. today start in applications is actually gotten passenger fuel-cell its

picture opportunity a as there is. yes, like I there's is do hydrogen, people general vehicles, for think, So there who think

long-haul trucking. whether and propulsion system, commercial a what to think an a alongside And level substantial that done see do is get the demonstrated cell, fuel an unloaded. an advantage this in combustion you with in respect of and I load work we've year, load fuel if just is cells quite it's interval so, with different it's engine, has we've engine the to when factor analyzed or heavy-duty internal that you'll Where has efficiency you that than hydrogen

practical. fuel-cells internal engines being issues combustion we address combustion or load. of strongly with And can fabulous basics goes engine points heavy-duty whereas physics more of because long-haul of far X basically be a efficiency internal so And load, that attracted an goes because to us cost to to the the up and application, efficiency engines the really combustion fuel-cells, as absolutely basically down fuel the devices, with an cell absolutely speak -- different an that being internal

we're And is so, where headed. this

and and vehicle? Westport we've there trade-offs there certainly see so future. And and efficiency looks of hydrogen For respect also to of include that that future with to While hydrogen got to the costs But important also light-duty combustion now sure interesting Systems what engines. could it'll but will like, be investments lots play will be Fuel be and be. and parts

Kristen Owen

launch detail readiness a I provide appreciate fairway a just that you I'm David. answer and that Chai Thank briefly, as the product? so of very next bit related progress can that you to ramp. you it how wondering touched detail, you little supply And is if feeling as on you're question about more ramp, chain question, on about much. the look My

David Johnson

Yes.

supply-chain answer one So let is first, and second ready. the the -- We're one me readiness. that first

perspective, place. the my So, launch in the from made capacity investments we've support are in have China to to the available

And so we're waiting. what really

X Before the field available. and have of fact. it been is are months that's a in customers our the mentioned ongoing product customer, make and fact. that action take trials to We marketplace That's a achieved. Certifications

pivot And point really waiting and anticipation. that so, really we're at in

know, investors I too. As are our

today. Fundamentally, in have market we're But relating a China is know, some to big product and the opening we're there. to is in you time, have at comments their to further one as this So, the to launch share. we what have marquee hopeful share point status news our eager

Operator

with The Please ahead. Capital Lake comes Markets. Brown Street Rob next go from question

Robert Brown

Hi, good morning.

David Johnson

Morning, Rob.

Robert Brown

trajectory point? do think should Just talked Europe you've picture this up demand that you about, quickly how supply loosen better. start playing HPDI and how at following that on up I can get you of see and in pent-up mentioned the the QX out What's in to chain terms that

David Johnson

have the the we feedback for very not years. see question, that positive product, year, prior -- just Thanks Fundamentally, demand. strong taken a do the this customers from but getting in We're Rob.

truck mid relationship partner you OEM our for reputation the gaseous-fueled, the in is as bodes strongly so, with our long-term it recognize and think that people marketplace, and the I well that for Europe. And want and long-haul in really building future the

ability In as just support moment ago, ramp we're to terms do mentioned, to good in a very to that of that a position Christina.

to we to ourselves, and our those time and the respond those on that challenges, your necessary look chain to in our eager We And say, and to year, for of ADI have supply we're sort our customer, should then terms to the we to as resolved growth. I capacity so that for step-by-step, through the marketplace, to customer delivery to its little see. faced us are of has These supply. the customers. one-by-one in to it's and come our own And because one story and for as going of therefore, and each our our names we some is so the and it see through customer, side through demand us talk easier on expect question. customer difficult difficult and the really from these will stories the do about. are But be But

Robert Brown

tell that, resolved some have it the fuel guess next seeing Great. on are Thank how stabilizing, on talked visibility on price early you too in duty is develops you. do do QX, that I following And Has that how or QX, yet? and some business the back price of is ins year you dynamics commodity you about year the to and -- of side, yet sort you yet then what's light outs fuel next come on. dependent and in going still

David Johnson

Yes. Thanks for the question.

important still on playing that my make crept just -- comments is the it and opening marketplace to the the are doubled year. in been and hasn't we a really that haven't mentioned out prices gas over re-stabilized. commodity think petroleum in than I settled last that I it's

we're energy the kind so, you of getting now the And back expensive territory, and that into for buy.

more than people a their at and are market-by-market and else, in pause the out and we're metric plays of we're and or what so petrol that our in how between decisions. so order petrol the diesel matter. forth. gas countries little that to that purchase and and natural forward-looking some prices books does hearing different pumps differentials LPG changing or seeing And And prices of And bit the anything in frankly, some in causes gas

forward and expect conserve for going that that of fuels liquid I need And level So of we'd us We're gaseous a period long all cause because like time. the stabilizes that has between Europe, time But persist high has that differential fuels to at will a persisted is we long price it happy India, us in price to a and and for this a concern to China. to markets stabilized. period energy. like if see think we

Robert Brown

it over. Okay, I'll turn thank you.

David Johnson

Rob. Thanks,

Operator

next The Please ahead. question with comes from go Peterson J.P. Bill Morgan.

Bill Peterson

taking Hi. Good questions. thanks the morning, and for

of back us a additional remaining feel you customers, be for better interested give application. you've beyond do Firstly, can you technology with conceptually, you little the guess to working bit, of been what hydrogen areas commercialization? a in the And and I one coming what be could timing think solved? are but to I'm maybe are mentioned the type what additional

David Johnson

hear Great great Let this -- me you question. Bill. morning, to

talking thing the ignited is since. an spark in been basically, effective about we've I'll And HPDI I in combustion combustion of my This career us, back the engines. internal talking was spark Let it's of way when in it engine, a year beginning is Fuel new argue that's very dismissed because year. or The would tell making It's been Westport not hydrogen use hydrogen a and this is the no fuel-cell ignited actually internal combustion been with engine. really poor the engine. I a you, this Systems as that this one always throttle XX we've engine is gasoline to internal something dial almost about and like how engines invented me combustion internal for basically, my a plugs spark a experience, demonstration think hydrogen petrol hydrogen the in and tried always this have to demonstrated been new.

we that Hydrogen is setup with their engines. and I -- combustion with because engines engine we've and to and internal internal an customers, -- and each spark fundamentally, in has to HPDI every what as throttle it educated tell combustion with go we as be of about So, informed them combustion counter because in plugs, experience one and [Indiscernible] valves internal work done

that we've compelling educate, been world do, dealing but I'll it a And the isn't you So, customers and data been that. the around to that with the is journey we've is we reception quite long and strong. so doing have to tell

AVL As cetera. the that already you et have from projects can with announced Scania see XP, we

of a is my that going hasn't fuel done development remains been What well. done, normal call from work for developing I'll this unique be So, the to perspective, before. is and engine

HPDI and that's say the is technology let's make in vehicles, course, to Meanwhile, lot a the be a companies the developed ready, needs hurry infrastructure. isn't you that the I'll tell work. there system in aren't because of big Our but that and of

do Gas an out the products of So, play between this themselves. this seen build-out build-out we market to before infrastructure need will, example, and you some have as you the coordination, the and with of if you've the Natural

its The projects. technology doing are these potential. its we has demonstrated value already so, and And

those production, customer market do And so market. now with expect you HPDI to the development announcements development, haven't saying come. of yet the as bring we to noticed need bringing hydrogen, I heard but and any it validation, we're will to -- do But a I

Bill Peterson

buildup HPDI, and even, -- this more I -- is earlier you coming what customers. can China, this example, this or a Is there. there's thanks customers' your And for a in to color you're of for of waiting particularly the I the there? said backlog guess, conventional could else back think issue least related trucks Is this happen? is to just say, on happen, say, and going just summer. better get ramp before timing to more, I let's a needs occur. one to on but side? commercial I'm in negotiations this on at your get not when Is could precise there ramp us feel going the trying what to cleared you're give when in this for realize

David Johnson

Yeah.

makes in that in other mentioned to the We timing think to vehicle for opening is it headwind prices natural they've and like -- launch rising so natural rest we world, so, have our launching our now, a a when comments of the bit going right it's things that some you in OEMs gas for for their I got gas. product China of so customers new on could a perhaps on. went they that runs the of imagine fundamentally, choose with

make with. the they OEMs launch date we in for in date and we the But right still customers and customers to that an term So, they for market right have that in is a HPDI there that wait that actual Richard the our and China pick terms the announcements. of are working that we're have important So, convinced in partner in place yet long power, an

Bill Peterson

Okay, thanks for clarification.

David Johnson

Bill. Thanks,

Operator

next Once with analyst Dayal Please ask Instructions]. go [Operator any from again, question who question The HC Amit a wishes ahead. Wainwright. comes to

Amit Dayal

to are capacity production? Good morning, of terms what potentially expansion you HPDI Richard, Can everyone. in mentioned you. Thank us HPDI you capacity for we on levels color and taking in now right give for some we're place. going

Richard Orazietti

into going of it to We're somewhere component the sets forecast. trying on depends up It XX,XXX build XX,XXX. our to Yeah. demand to Amit. according Hi,

to nothing, the Sometimes first to XX, and -- lot clearance, capacity, of whereas the have at kind a we're between XXX,XXX then XX or are a XX is biomachine, thresholds looking and in initial these step but it working call in beyond program. of all you systems

Amit Dayal

you just Thank me. more environment? this that. any Okay. in from petrol And one price with then moving potentially, for increases [Indiscernible] guys,

David Johnson

Yeah. Great question, Amit.

Richard Orazietti

ahead, Go David.

David Johnson

Yes.

Thanks, Sorry. Richard.

and go inflationary told -- and up it's to my is times, I've team are of have living in part costs prices we're me it is really to what up. it part clear that so, So, feels go we like of

is, of amount to with say, daily end to customers And right right time team necessary the change work customers. the our to to and find the those as our work let's so, pass on to this prices

commodities, it's have seeing So, think price or do in to throughout we for increases steel world part that whether And energy with example. that markets. we're commodity or just I the we've of keep other seen, to all do our the this and up copper

and affect All of microchips them there do of in course, us too. are

part And our the the these borne market and than in cost so so, place activities. of by daily equation, of increases that's need be to all

Amit Dayal

have. David. all I it. That's Thank you, Appreciate

David Johnson

Thanks, Amit.

Operator

the session. for would turn to I question-and-answer closing over conference like back to Johnson the the David remarks. concludes This

David Johnson

providing seeing those Thank thanks in Conference. you Craig-Hallum you good a our Have you very very the who and Thank much joining certainly look to forward and to call further future, of the you everyone for updates attended We much. with day. today.

Westport Fuel Systems (WPRT) 9 Nov 212021 Q3 Earnings call transcript