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and ramp-up cost. This includes costs relating to the ramp-up at the new Herøya
facility which is still not contributing to revenue. The order backlog ended at
NOK 1 078 million, up ~4% from same quarter last year. The cash balance ended at
NOK 3.07 billion. Nel reiterates the strong long-term outlook and growth
prospects for the sector.
“In the second quarter, we are very happy to see that the ramp-up of our Herøya
facility is going according to plan despite challenges related to the pandemic.
The new, fully automated, 500MW production line will be a game changer for Nel
and for the industry once it is producing and we will start the ramp-up in the
third quarter of this year; significantly reducing the costs of producing green
hydrogen. As expected, Nel’s second quarter results are impacted by the
strategic ramp-up, investments in people and technology and the continued
effects of the Covid-pandemic. We are still expecting that the order intake will
vary between quarters as order sizes increases and public funding mechanisms are
being implemented.” says Jon André Løkke, Chief Executive Officer of Nel.
Nel reported revenue and operating income in the second quarter 2021 of NOK
163.7 million (148.7), following a growth in both the Fueling and Electrolyser
segment compared to the same quarter in 2020. Nel is no longer reporting
adjusted EBITDA separately, however, the EBITDA includes one-offs and ramp-up
cost. In particular, results are impacted by costs relating to the ramp-up at
Herøya, before production and revenue contribution from the facility. The
reported operating loss was NOK -149.1 million (-70.2), while the pre-tax loss
ended at NOK -314.1 million (594.3) following a net negative fair value
adjustment related to the shareholding in Everfuel and Nikola. The backlog is up
slightly since second quarter last year, with an order intake of around NOK 150
million in the quarter. Net cash balance at the end of second quarter 2021 was
NOK 3.07 billion.
“Nel has a solid balance sheet and a strong financial position to execute on our
strategic plans, and we will continue to invest in technology and people in
order to maintain our leadership in what will be a rapidly growing market,”
Løkke comments.
Nel is expanding its electrolyser capacity at Herøya, Norway, which is a key
element to delivery on the cost target of USD 1.5/kg set out at the Capital
Markets Day in January. The expansion of the electrolysis production will
accommodate large-scale projects by constructing a fully automated manufacturing
facility. The construction process is on track, with more than 45,000 manhours
completed and with zero HSE incidents. Installations, verification of improved
technology and tests of installed equipment are completed to meet production
start and ramp-up in Q3 2021.
“We remain confident in the long-term potential of the green hydrogen industry
and reiterate the strong growth outlook. 2021 will be a monumental year for the
industry, and even if we should see the first 100MW+ project in the industry
this year, larger orders are taking longer to close as we are waiting for
important public financing mechanisms to come through. With the new production
facility at Herøya we remain confident that Nel is well suited to capitalise on
these opportunities with our proven track record, market leading position and
global delivery and execution muscle” Løkke concludes.
EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements as a part of the APM section of the
second quarter 2021 report on page 24.
The second quarter 2021 report and presentation are enclosed and available
through www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com. Nel will host a
presentation at 08.00 CET and the event can be streamed at
https://channel.royalcast.com/landingpage/hegnarmedia/20210819_2/. There are
available places to view the presentation in-person at H7-2, Haakon VIIs gate,
Oslo - those registered will be prioritized as participation is limited due to
Covid-19 restrictions (Contact ir@nelhydrogen.com to register).
The presenters will be Chief Executive Officer Jon André Løkke and Chief
Financial Officer Kjell Christian Bjørnsen, and the presentation will be held in
English.
ENDS
For further information, please contact:
Kjell Christian Bjørnsen, CFO, +47 917 02 097
Ida Marie Fjellheim, Investor Relations, +47 905 09 291
About Nel ASA | www.nelhydrogen.com
Nel is a global, dedicated hydrogen company, delivering optimal solutions to
produce, store and distribute hydrogen from renewable energy. We serve
industries, energy, and gas companies with leading hydrogen technology. Our
roots date back to 1927, and since then we have had a proud history of
development and continuous improvement of hydrogen technologies. Today, our
solutions cover the entire value chain: from hydrogen production technologies to
hydrogen fueling stations, enabling industries to transition to green hydrogen,
and providing fuel cell electric vehicles with the same fast fueling and long
range as fossil-fueled vehicle, without emissions.
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