Nel ASA: Third Quarter 2018 Results
(Oslo, November 1, 2018) Nel ASA (“Nel”) reported revenues in the third quarter
of 2018 of NOK 116.0 million, up from NOK 111.7 million in the third quarter of
2017. Nel received several purchase orders during the quarter, recently
announced the construction of the world’s largest electrolyzer manufacturing
plant and reiterates a strong market outlook.
“The third quarter of 2018 was a hectic quarter, reflecting both the momentum we
are gaining across the world, as well as our ambitions for the future. This
includes announcing the construction of the world’s largest electrolyzer plant
in Norway, opening our new state-of-the-art H2Station factory in Denmark, and
also key purchase orders like the first power-to-gas project in Australia. Not
least, our H2BusEurope project, alongside other leading industry partners, has
been proposed for a grant award of around EUR 40 million. We are all hands on
deck as we move forward and continue our efforts to develop Nel further,” says
Jon André Løkke, Chief Executive Officer of Nel.
In the third quarter of 2018, Nel reported revenues of NOK 116.0 million,
compared to NOK 111.7 million in the same quarter of 2017. The Fueling and
Solutions segments had a good quarter, while the Electrolyser segment was
negatively impacted by certain project delays and lower activity within the
global hydro power plant market. The adjusted EBITDA ended at NOK -16.8 million
(-10.5), adjusting for non-recurring and other cost of NOK 36.5 million
following cost overrun on two specific projects, legal cost related to the US
settlement with PDC Machines, Inc. and other issues. The reported EBIT was NOK
-66.3 million (-33.3).
The order backlog amounted to NOK 365.3 million, which includes the two demo
hydrogen fueling stations for Nikola’s fleet of prototype hydrogen trucks, but
does not include the exclusive commercial station contract, which Nel and Nikola
are jointly working on to determine exact timing of deliveries, as well as
detailed station design.
“Overall, we are not satisfied with the revenue development, nor the EBITDA for
the quarter. We are, however, expecting that recently implemented cost
reductions across the majority of our product range, as well as further
alignment of our sales force, will take us back on a more aggressive growth
path, while delivering on our long-term ambition of being in the forefront of
the industry,” says Løkke.
The net cash balance at the end of the quarter ended at NOK 434.1 million. The
company raised NOK 46.8 million in gross proceeds in a subsequent offering
during the quarter, following the NOK 281 million private placement in June
2018. The proceeds will primarily be used to fund the expansion of the
production facility at Notodden, as well as product developments to prepare for
deliveries to Nikola. Nel also invested USD 5 million into Nikola as part of
their C-round financing during the third quarter, further strengthening the
partnership between Nel and Nikola.
“The activity within hydrogen across the globe has never been higher, nor has
the value of our pipeline. In this environment, we are working hard and making
tough priorities, constantly balancing between current business and longer-term
strategic positioning. We target to maintain a leadership position with a global
presence, cost leadership, and preferred-partner status for industry
participants,” Løkke concludes.
Nel will host a presentation at 08:00 CET at Hotel Continental in Oslo on
November 1, 2018. A live webcast of the call will also be available on the
company’s website, www.nelhydrogen.com/webcast, and on
http://webtv.hegnar.no/presentation.php?webcastId=97451404.
The third quarter 2018 report and presentation are enclosed and available
through www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com
ENDS
For further information, please contact:
Jon André Løkke, CEO, Nel ASA, +47 907 44 949
Bent Skisaker, CFO, Nel ASA, +47 468 21 693
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. Since its
origin in 1927 as part of Norsk Hydro, Nel has a proud history of development
and continuous improvement of hydrogen plants. Our hydrogen solutions cover the
entire value chain from hydrogen production technologies to manufacturing of
hydrogen fueling stations, providing all fuel cell electric vehicles with the
same fast fueling and long range as conventional vehicles today
Ekstern link: https://newsweb.oslobors.no/message/462530
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