U.S.-based global energy storage technology and services provider Fluence recorded revenue of $239 million for the third quarter (Q3) of the financial year (FY) 2022 against $278 million in Q3 2021, a drop of 14%.

Revenue fell 30% quarter-over-quarter from $343 million.

Fluence attributed the dip in revenue to Covid-19-driven lockdowns in China, resulting in delayed shipments of batteries and project completion.

The company posted a net loss of $61 million in Q3, a year-over-year (YoY) increase of 57% from $39 million. Pandemic-related supply chain issues disrupted the shipments, which were reflected in the losses incurred by the energy storage company.

Fluence’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q3 totaled $48 million, a YoY increase of 37% from $35 million.

Fluence posted a gross profit of $5 million for the period, a YoY fall of 67% from $15.

Fluence’s energy storage product order intake for the first nine months (9M) of 2022 stood at 1,493 MW, a YoY leap of 14% from 1,311 MW last year. The company contracted 311 MW of energy storage products in Q3 and 81 MW of energy storage services in FY 22.

Fluence’s CEO Manuel Perez Dubuc observed, “While we remain under force majeure with many of our battery suppliers, we are encouraged by the increasing volumes we are seeing as our battery suppliers begin to recover from the recent Covid-19-related lockdowns in China. We will continue to explore ways to diversify our battery supply as we engage with players throughout the value chain, and we remain committed to reducing our project costs. We are excited about our future and look forward to showing further progress on our margins in the fourth quarter.”

Fluence had an order backlog of $2.1 billion by the end of Q3, which comprises ~$1.8 billion from energy storage products and ~$0.3 billion from recurring revenues businesses — energy storage services and Fluence IQ.

Under the energy storage services category, Fluence had 1,511 MW of assets under management until June 2022, with a contracted backlog of 1,853 MW. The company deployed 1,580 MW of energy storage products until June with a contracted backlog of 3,564 MW.

To further the capacity of energy storage until the end of the decade by over 14 GW, Fluence said that the Inflation Reduction Act would help grow the demand for energy storage solutions in the U.S. The Act will bring over 20% incremental growth in America’s energy storage sector.

“We are encouraged by the progress we’re seeing in U.S. policies with the proposed Inflation Reduction Act of 2022. There are several elements of this proposed legislation that would provide significant upside for Fluence, namely the 30% investment tax credit for standalone energy storage,” the CEO said.

Fluence had posted revenue of $175 million in the first quarter of FY 22 compared to $116 million in the same period last year.

In July, Fluence announced the launch of a new global technology center in Bengaluru to support the company’s global product strategy by growing engineering capabilities, scaling global talent, and bolstering Fluence’s presence in India.