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July 18, 2023
By Leigh Collins
Hydrogen electrolyser maker Nel reports
record quarterly revenues, but still makes a $34m loss in Q2
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Norwegian manufacturer sees year-on-year income
growth of 159% as orders increase by 81%
Norwegian electrolyser maker Nel has reported its
highest ever quarterly revenues of NKr475m ($47.3m) in the second
quarter of 2023 — an increase of 159% year-on-year, but nevertheless
registered a net loss of NKr342m ($34m) in Q2.
All segments — fueling, alkaline electrolysers
and PEM electrolysers — “experienced strong growth compared to the
same quarter last year”, the company stated in a press release.
Order intake for the quarter hit NKr428m, up 81% compared to the same
period last year (NKr236m), while Nel’s order backlog also grew to
NKr2.96bn, a 106% increase year-on-year.
“The electrolyser division reported a significant
202% increase in revenue compared to the same quarter last year, which
was one of the first quarters of deliveries from [Nel’s new factory
in] Herøya [southern Norway],” the company stated.
“As volumes have increased, alkaline revenues have shown a substantial
growth of 383% from the same period last year, while PEM was up 78%
for the same period.”
Håkon Volldal, CEO of Nel, who officially joined the company on 1 July
2022, added: “We continue to see positive developments due to
increased production volumes and revenues from contracts with
significantly improved terms.”
However, earnings before interest, tax, depreciation and amortization
(Ebitda) amounted to a loss of NKr138m for Q2, which the company
blames on “high losses in Fueling, low margins on electrolyser
projects signed in 2020/21 and increased personnel expenses to prepare
for large-scale project execution”.
The wider net loss of NKr342m is “mainly related
to loss from operations and a net negative unrealized fair value
adjustment from shareholdings of minus NKr198m” — in other words, an
on-paper loss from investments.
Nevertheless, the Norwegian company still retains a cash balance of
NKr4.12bn, up 13% on Q2 2022 (NKr3.65bn).
“Electrolyser projects are becoming increasingly larger and order
intake is therefore expected to vary between quarters,” said Nel.
“However, overall demand is growing, and customers are increasingly
looking towards suppliers with available capacity and a track record
for delivering reliable, high-quality equipment.”
Volldal added: “Our pipeline, consisting of increasingly larger
projects, continues to mature. With size comes complexity, which we
are confident will play out favourably for Nel as the need for
competence and experience increases accordingly.”
Nel announced in Q2 that it planned to build a new PEM and alkaline
electrolyser gigafactory in Michigan that would eventually reach a
production capacity of 4GW, although no final investment decision has
been made.(Copyright)
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
Nathan1@greenplayammonia.com
exactrix@exactrix.com
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