Nel ASA: Second quarter 2016 results

(Oslo, 25 August 2016) Nel ASA (Nel) reported revenues in the second quarter of NOK 13.5 million, reflecting the fluctuating nature of Nel’s project business, as well as initiation of certain projects being postponed to the second half of 2016. The underlying project pipeline is strong and Nel has submitted a proposal for the fourth quarter allocation of the governmental hydrogen program in California.

”The second quarter was a busy period for Nel. We have introduced the next generation fueling station, the CAR-200, with orders already being placed by leading European customers. We also recently announced the new Nel C-range containerised turn-key electrolyser solution, setting the benchmark for hydrogen production efficiency and footprint. The establishment of Nel Hydrogen Solutions business area enhances market opportunities across the group, initiatives are already yielding results, and Nel is positioned at the forefront of a rapidly growing hydrogen industry”, says Jon Andrè Løkke, Chief Executive Officer of Nel.  

In the second quarter of 2016, Nel reported revenues of NOK 13.5 million (Q2’15: MNOK 16.0), reflecting the fluctuating nature of the company’s project business, as well as initiation of certain projects being postponed to the second half of 2016. EBITDA ended at NOK -14.0 million (-5.3), impacted by the high activity level within business development in new markets, investments, and preparation for production ramp-up. Nel’s cash balance at the end of the second quarter was NOK 265.9 million, up from NOK 152.2 million at the end of the second quarter in 2015.  

Nel is a pure play hydrogen company with market leading technology, a strong management team, a solid balance sheet, and is positioned to play a leading role in a fast-moving industry. The underlying project development pipeline is strong and the company experiences a high activity level in ongoing tender processes,” says Løkke.

In California, the Energy Commission has doubled the Governmental Grant Opportunities (GFO) hydrogen program to USD 33 million, with a target to reach 100 hydrogen fueling stations by 2020.

”Nel is taking both a direct and an indirect approach to the important California market, leveraging on delivering leading hydrogen technology. California represents an important opportunity for Nel as 33 percent of the hydrogen must be renewable, today hardly any hydrogen is made from renewables. We have submitted our California funding proposal and look forward to the governmental allocation that should take place during the fourth quarter of 2016, ” says Jon André Løkke.

The presentation will be broadcasted live at www.nel-hydrogen.com/webcast and can also be viewed at http://webtv.hegnar.no/presentation.php?webcastId=36902334

The second quarter 2016 report and presentation will be made available through www.newsweb.no and www.nel-hydrogen.com.

ENDS

For additional information, please contact:

Jon André Løkke, CEO, +47 90 74 49 49

About Nel

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 foundation in 1927, Nel has a proud history of development and continual 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. www.nel-hydrogen.com

About Us

NEL ASA is a leading global supplier of hydrogen technology for industrial / energy purposes, and has made over 500 deliveries in more than 50 countries. The company's main products are hydrogen production plants based on water electrolysis, complete hydrogen stations for transport and renewable energy storage solutions. The company has its roots from the hydrogen activities of Norsk Hydro, which dates back to 1927. The company also has a number of patents related to tests for early detection and diagnosis of diseases.