Nel ASA reports Q1 2019 results

Nel ASA reports Q1 2019 results

Nel ASA has reported revenues in the first quarter (Q1) of NOK 122.4m ($14m), up from NOK 112.5m ($13.8m) in Q1 2018, representing a growth of 9%.

“Nel has a solid intake so far in 2019, reflecting the attractive market opportunities provided by our leading technology across segments. The order for a 4.5MW alkaline electrolyser solution from Hybrit is an important example on how we’re working to develop next generation electrolyser technology for industrial applications,” said Jon André Løkke, CEO of Nel.

“The solution will be used for a pilot which aim is to create fossil free steel production for the future. Coupled with our focus on ongoing technology development to accommodate the fast-growing heavy-duty segment, we are well positioned for what lies ahead for new and existing hydrogen markets.”

The fuelling segment experienced a positive development during Q1 with a growth of 40%. The adjusted EBITDA ended at NOK -20.1m (-$2.29), adjusted for non-recurring and other ramp-up costs of NOK 14.7m ($1.7m).

Nel received several purchase orders in 2019. The order backlog ended at NOK 406m ($46.3m) at the end of the quarter and Nel has added close to NOK 200m (22.8) in new orders.

After the closing of the quarter, Nel received a purchase order for a 4.5 MW alkaline electrolyser solution from Hybrit Development AB, a joint venture owned by SSAB, LKAB and Vattenfall.

“Being chosen to supply electrolysers to the first phase of the Hybrit project is a true honour. It’s encouraging to see the partners behind Hybrit leading the way in the effort to decarbonise the steel industry; one of the most CO2-intensive industries globally today,” said Løkke.

“The market potential is massive and the total potential for CO2-free steel is around 3x that of ammonia. Nel holds the pole-position for these future markets.”

“The interest in hydrogen solutions continues to be at all-time-high with large opportunities ahead and we’re constantly optimising between current business and longer-term strategic positioning. We reiterate our strong market outlook by maintaining a leadership position with a global presence, cost leadership and a preferred-partner status for industry participants,” Løkke concluded.

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