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Capital continues to leak from Nel

The Danish-Norwegian hydrogen company reports improvement in the third quarter, despite a bottom line written in red.

Photo: PR Nel Hydrogen

Nel's revenue, operating result and deficit have all improved during this year's third quarter.

The hydrogen company books a surge in revenue, landing at a new high level of NOK 148.9 million (EUR 14.75 million) against NOK 116 million from the same period last year.

Earnings before interest, taxes, depreciations and amortizations remain negative – but not as deep in the hole as this year's Q2 and Q3 of 2018 – and totals to NOK -28.9 million. The EBITDA deficit was NOK 72.6 million in the second quarter of 2019 and came to NOK -53.3 million in last year's Q3.

Nel informs in the interim report that it has spent NOK 11 million in non-reoccurring ramp-up costs for items ranging from start-up expenses to activities in South Korea and California, the company's new factory in Herøya, Norway, as well as legal costs.

The bottom line shows a deficit of NOK 33.4 million, almost twice as nice as the same post from Q3 of 2018, which showed a deficit of NOK 65.5 million.

Nel informs that its cash balance was at NOK 651 million at the beginning of the third quarter.

"Nel experienced another busy quarter with a 28 percent top line growth, in line with company outlook, and a high level of new business development activities. In addition, the Nel team continued to build the solid pipeline of tenders and projects across segments and geographies. These initiatives contributed to another quarter of securing a record high backlog and together with a strong market outlook, this provide a solid foundation for 2020 and beyond," writes Nel Chief Executive Jon André Løkke about the interim results.

The order book grew by 58 percent relative to the third quarter of 2018 and is now worth a total of NOK 575 million.

According to the CEO, Q3 has been marked by both by the company's own industrial development as well as growing interest in hydrogen fuel-cell technologies.

"An example is Korea with their national target of more than 300 hydrogen stations by 2022. We are encouraged by having received a total of ten purchase orders so far in 2019," Løkke writes.

English Edit: Daniel Frank Christensen

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