Nel ASA: First quarter 2023 financial results
04/27/2023 | 01:01am EDT
(April 27 - 2023, Oslo, Norway) Nel ASA (Nel, OSE:NEL) reported revenues of NOK
359 million in the first quarter of 2023, up 68% from NOK 213 million in the
same quarter of 2022. Order intake was NOK 580 million, up 105% year-on-year,
positively impacted by purchase orders from HH2E (EUR 34 million) and HyCC (EUR
12 million). At the end of the first quarter, the order backlog was NOK 2 913
million, up 126% from Q1 2022. The cash balance was NOK 4 621 million at quarter
end.
Quarterly highlights
· Nel reported revenue and operating income in the first quarter of 2023 of
NOK 359 million, up 68% from the first quarter of 2022 (Q1 2022: 213). All
segments, Fueling, PEM electrolysers and alkaline electrolysers experienced
strong growth compared to the same quarter last year.
· Order intake in the quarter amounted to NOK 580 million (96% from
electrolyser), up 105% from the same quarter last year (Q1 2022: 283).
· At quarter end, Nel had a record high order backlog of NOK 2 913 million
(88% related to electrolyser), up 126% from the first quarter of 2022 and up 12%
compared to the previous quarter.
· EBITDA of NOK -121 million (Q1 2022: -152) driven by high losses in Fueling,
low margins on electrolyser projects signed in 2020/2021, and increased
personnel expenses to prepare for large-scale projects.
· Net loss of NOK -192 million (Q1 2022: 84), mainly related to loss from
operations and a net negative unrealized fair value adjustment from
shareholdings of NOK -76 million. The same quarter last year had a positive
unrealized fair value adjustment from shareholdings of NOK 270 million.
· Cash balance of NOK 4 621 million (Q1 2022: 3 940) following a successful
private placement during the quarter which raised NOK 1 609 million in gross
proceeds.
Nel had a good start to 2023 with robust growth for its Electrolyser division
compared to the previous year's first quarter. The production volumes at the
company's manufacturing facility at Herøya in Norway are increasing, and the
company received two large purchase orders for its alkaline electrolyser
equipment. The new contracts followed a solid second half of 2022, with the
company improving terms and conditions on significantly larger contracts.
"Our results are improving as a consequence of increased production volumes and
the fact that better margins on our newest contracts have started to impact our
financial results," says Nel's CEO, Håkon Volldal.
At quarter-end, the cash balance was NOK 4 621 million (Q1 2022: 3 940)
following a successful private placement on 6 March 2023. The capital raise puts
Nel in a solid financial position as the company is committed to capitalizing on
its position as a technology frontrunner.
Volldal says Nel will continue to invest in the organization, in technology
development, and in scaling up the production capacity.
"Nel is observing a constant increase in interest and potential opportunities
within the hydrogen industry. Our pipeline continues to improve and mature, and
we continue to secure large-scale contracts. As a result, we shall keep on
investing in the organization, improving our technology platforms, and scaling
manufacturing capacity," says Volldal.
The construction of Nel's second production line at Herøya is progressing
according to plan, bringing the total production capacity to 1 GW. In addition,
the company is preparing to automate its PEM electrolyser technology's
production process, and expand to ~500 MW manufacturing capacity at its facility
in Wallingford, Connecticut.
Furthermore, the site selection process for Nel's new gigawatt Alkaline and PEM
manufacturing facility in the US is now in its very final stage, and the company
will shortly communicate in which state this factory will be located.