cdbe schreef op 25 oktober 2023 08:06:
Nel ASA: Third quarter 2023 financial
results
(October 25, 2023 - Oslo, Norway) Nel ASA (Nel, OSE:NEL) reported quarterly revenues of NOK
405 million in the third quarter of 2023, up 121% from NOK 183 million in the same quarter of
2022. EBITDA came in at NOK -109 million, showing a steady improvement from previous
quarters. EBITDA margin from the electrolyser division was -10% this quarter, up from -12% in
Q2’23 and -64% in the same quarter last year. Order intake was NOK 352 million, and at the end of
the third quarter the order backlog was NOK 2 854 million, up 36% from Q3 2022 and in-line with
the previous two quarters. The cash balance was NOK 3 799 million at quarter end.
Quarterly highlights
• Nel ASA (Nel) reported revenue and income in the third quarter 2023 of NOK 405 million, up
121% from the third quarter 2022 (Q3 2022: 183). All segments, Fueling, PEM electrolysers
and alkaline electrolysers experienced strong growth compared to the same quarter last
year.
• EBITDA in the quarter was NOK -109 million (Q3 2022: -214). The EBITDA is improving with
increasing revenues on large-scale electrolyser contracts and improving cost control in Nel
Fueling.
• Net loss of NOK -226 million (Q3 2022: -260), mainly related to loss from operations and a
net negative unrealised fair value adjustment from shareholdings of NOK -90 million. The
same quarter last year had a net negative unrealised fair value adjustment from
shareholdings of NOK -99 million.
• Order intake in the quarter amounted to NOK 352 million (96% from electrolyser), down 55%
from the same quarter last year (Q3 2022: 775).
• At quarter end, Nel had an order backlog of NOK 2 854 million (86% related to electrolyser),
up 36% from the third quarter of 2022, and in line with the previous quarter.
• Cash balance of NOK 3 799 million at quarter end (Q3 2022: 3 520).
• Reached a milestone of generating more than NOK 1 billion (NOK 1 239 million YTD 2023) in
revenue and income (Full year 2022 revenue and income of NOK 994 million).
“For the first time we have exceeded one billion NOK in YTD revenues, with still one quarter to go.
At the same time, margins are improving as the company is scaling production and becoming more
streamlined” says Håkon Volldal, CEO of Nel. “This shows that our newly implemented strategy is
starting show real impact”.
Nel Hydrogen Electrolyser reported a 116% increase in revenue and income compared to the same
quarter last year. Growth in alkaline electrolysers was strong as Nel continued the deliveries of
electrolyser equipment from the manufacturing facility at Herøya in Norway. Revenues from sales of
alkaline electrolysers increased 194% compared to the same quarter last year, and quarterly sales
of PEM electrolysers increased 51% from Q3 2022.
Nel signed two significant electrolyser contracts this quarter. The pipeline continues to improve,
where the top 20 leads suggest an average project size of about 360 MW, and a median of about
250 MW. Overall demand is growing, and customers are increasingly looking towards suppliers with
available capacity and a proven track record. However, project developers are facing increasing
cost of capital with rising interest rates, higher renewable power prices, lack of visibility on funding
schemes, and reduced concern about available capacity.
“With increased project size, complexity and risk, the need for competence and experience
increases accordingly. Nel is therefore well positioned for large-scale leadership” says Håkon
Volldal. “We are in a financially sound position and will only sign contracts with acceptable risk
profiles that have a positive financial contribution”.
Plymouth Charter Township, a suburb of Detroit, Michigan, US, was in the third quarter selected as
the home for Nel’s new electrolyser Gigafactory where the company is looking to build up to 4 GW
of production capacity (in phases), split between PEM and Alkaline. Nel has also secured USD >50
million in state funding related to setting up the factory (both direct investment support and tax
credits/exemption) and could potentially receive additional funding of USD 75m in federal/state
support, predominantly in cash. No final investment decision has been made yet for the factory.
For the Fueling division, revenues remained at the same level as in Q2’23, while EBITDA margin
improved from previous quarter and same quarter last year, implying the measures made in the
division are starting to have an impact. Order intake in the third quarter was marginal as Nel is
shifting focus towards high-capacity systems for heavy-duty transportation.
The third quarter 2023 report and presentation are enclosed and available on
www.newsweb.no(Ticker: NEL) and
www.nelhydrogen.com. The presentation will be a virtual event only, followed by a
Q&A session. The live presentation can be accessed on the company’s website
nelhydrogen.com/quarterly-presentation/ or by following this link. A recording of the presentation will
be publicly available following the event.
ENDS