Fluence Responds to Misleading Short Seller Report
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Insights
The response from Fluence Energy to the short-seller's report touches upon several key financial and strategic aspects of the company's operations. Firstly, the litigation with Siemens Energy, while described as a minor commercial dispute, involves sums that are material enough to warrant attention. The claim and counterclaim, totaling approximately $11 million, could impact Fluence's financials, particularly if the outcome is unfavorable. However, the company's assertion that this does not affect its relationship with Siemens AG, an investor and minority owner in Siemens Energy, suggests that the financial implications may be contained within this specific dispute.
Furthermore, the company's clarification about its ongoing relationship with AES as a preferred supplier refutes the short-seller's implication of a weakening business partnership. If true, this would maintain the revenue stream from a key customer and support Fluence's sales pipeline stability. The mention of a growing customer base indicates potential for revenue diversification, which is a positive sign for resilience and long-term financial health.
In terms of corporate governance, Fluence's commitment to transparency and high standards could reassure investors, especially in the context of a short-seller's allegations. It is essential, however, for the market to monitor the company's subsequent disclosures and actions to ensure that these standards are indeed being upheld.
From a legal standpoint, the ongoing litigation between Fluence and Siemens Energy is significant as it highlights the risks associated with commercial disputes. The nature of the dispute, characterized by Fluence as 'ordinary course commercial,' suggests that such disagreements are not uncommon in the industry. Nonetheless, the legal process will determine the veracity of the claims and counterclaims. The outcome of this case could set a precedent for how similar disputes might be handled in the future, influencing contract negotiations and risk assessments for Fluence and its competitors.
Additionally, the distinction made between Siemens AG and Siemens Energy is critical. It underscores the complexity of corporate relationships and investments in the energy sector. Investors often require clarity on these relationships to assess potential conflicts of interest or impacts on strategic partnerships. The clarification provided by Fluence aims to dispel concerns about the broader implications of the dispute on its investor relations and business strategy.
The emphasis on Fluence's diversified customer base and the reaffirmation of AES as a key technology partner are strategic elements that can influence the company's market position. The energy storage sector is highly competitive and rapidly evolving, with technological advancements and shifting regulatory landscapes. Fluence's ability to maintain and grow its customer base is indicative of its competitive strength and could be a positive signal to the market regarding its adaptability and innovation.
It is also important to consider the broader market implications of the short-seller's report. Such reports can create volatility in the stock market, affecting not just the targeted company but also its competitors and the industry at large. The response from Fluence is an attempt to mitigate this volatility by providing reassurance to shareholders and the market. The effectiveness of this communication in stabilizing investor sentiment will be an important factor to watch in the short-term market performance of Fluence's stock.
ARLINGTON, Va., Feb. 22, 2024 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (“Fluence” or “the Company”) (NASDAQ: FLNC), a leading global provider of energy storage products, services, and optimization software for renewables and storage, today issued a statement in response to a report published by a known short-seller. The Company believes that the report is an attempt by a self-interested short-seller to profit at the expense of Fluence’s shareholders by manipulating Fluence’s stock price.
We believe that the report contains numerous inaccuracies and distortions. The Company believes it is important to set the record straight regarding three blatant misrepresentations:
- The short-seller's report references pending litigation between Fluence and Siemens Energy, attempting to characterize it as a "critical and dramatic development." While any dispute with a customer is unfortunate, this is a small, ordinary course commercial dispute arising from a single project. Fluence brought the action to collect approximately
$2 million in unpaid amounts due, and Siemens Energy responded with counterclaims of approximately$9 million . Fluence strongly denies Siemens Energy’s counterclaims and the case is progressing in the ordinary course.
- Siemens AG and its German retirement fund are investors in Fluence. Siemens AG has a minority ownership interest in Siemens Energy – it is not the same company and there is no legal case between Siemens AG and Fluence. We believe the litigation with Siemens Energy has no effect on our strong relationship with Siemens AG.
- The short-seller's report wrongly implies AES is moving away from Fluence as a supplier. In fact, Fluence continues to be AES’ preferred Battery Energy Storage Systems technology provider. Our robust pipeline of sales to other customers continues to grow. Contrary to the implications in the short-seller report, the diversification of our customer base reflects the financial strength of our business and is part of our long-term strategy.
The Company reiterates its commitment to maintaining high standards of corporate governance and internal controls, as well as transparent and timely disclosure in compliance with applicable rules and regulations.
Fluence is confident that it has the right strategy, products, solutions, and team in place to create shareholder value.
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader in energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, Fluence provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and AI-enabled SaaS products for managing and optimizing renewables and storage from any provider. The company is transforming the way we power our world by helping customers create more resilient and sustainable electric grids.
For more information, visit our website, or follow us on LinkedIn or Twitter. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.
Cautionary Note Regarding Forward-Looking Statements
The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding pending litigation, the Company’s relationship AES and Siemens, the Company’s sales pipeline, and diversification of the Company’s customer base. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, factors set forth under Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the Securities and Exchange Commission (“SEC”) on November 29, 2023, and in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.
Media Contact
Shayla Ebsen, Director of Communications
Email: media.na@fluenceenergy.com
Phone: +1 (605) 645-7486
Analyst Contact
Lexington May, Vice President Finance & Investor Relations
Email: investorrelations@fluenceenergy.com
Phone: +1 (713) 909-5629
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