Norwegian dedicated hydrogen company Nel has today released its first quarter 2020 results reiterating a positive long-term outlook.
Nel said the visibility on the duration and size of the effects from the coronavirus (Covid-19) situation is currently low and reported revenues of NOK 126.5m in the first quarter, slightly up from NOK 122.4m in the same quarter of 2019.
The adjusted EBITDA was NOK -41.7m, adjusted for non-recurring and other ramp-up costs, and the backlog grew 46% to approximately NOK 590m. Nel said no adjustment has been made for Covid-19 effects.
During the first quarter of 2020, Nel completed a successful private placement raising NOK 846m in gross proceeds, in addition to the subsequent offering in April 2020, bringing the cash position to exceed NOK 1.3bn.
“Nel targets to have a strong financial position to execute strategic plans. The private placement and subsequent offering were both oversubscribed showing a solid backing from our shareholders,” said Jon André Løkke, CEO of Nel.
“We target to maintain and strengthen our leading position in a growing market through accelerated investments in technology and organisation, and experience an increased importance of being a financially strong counterpart, especially for larger contracts.”
Nel said it remains committed to the growth strategy and has through 2019 taken on additional employees and costs to prepare for future growth.
The company holds its workforce largely intact amid Covid-19, allowing Nel to maintain the momentum when the situation normalises.
“The hydrogen market is expected to grow significantly, and green hydrogen is on a trajectory to outcompete fossil hydrogen and fossil fuels,” Løkke continued.
“There is an increased adoption of industrial hydrogen applications with a large overall potential. In addition, there is a momentum within mobility and especially within heavy-duty-vehicles. We reiterate our confidence in the long-term potential for the industry.”
Touching briefly on Covid-19, Løkke reinforced previous messages communicated in market updates on 22nd March, 26th March and 21st April.
“Nel implemented strict regulations to ensure safety of customers, employees, partners and co-citizens. These ‘stay home – stay safe’ polices impact our production, installation, commissioning and associated revenue recognition,” he said.
“We reiterate a positive long-term outlook as the markets in which we operate are still showing high activity and strong growth momentum. In addition, we see various governmental interest in developing and supporting major green initiatives as part of building new industries and infrastructure post Covid-19.”