In This Article:
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Revenue: NOK332 million for Q2 2024, down 10% year-on-year.
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EBITDA: Minus NOK79 million for Q2 2024.
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Order Intake: NOK270 million for Q2 2024.
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Order Backlog: NOK2,071 million at the end of Q2 2024.
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Cash Balance: NOK2,228 million at the end of Q2 2024.
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EBITDA Margin: Improved from minus 20% to minus 7% year-to-date.
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Net Income: Improved due to previous year's negative impact from Everfuel share valuation.
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Alkaline Electrolyzer Revenue: Flat compared to Q1 2024, down 13% year-on-year.
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PEM Electrolyzer Revenue: Up more than 50% from Q1 2024, down 4% year-on-year.
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Production Capacity: 1 gigawatt for alkaline electrolyzers at Heroya; expanding to 500 megawatts for PEM electrolyzers at Wallingford.
Release Date: July 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NEL ASA (NLLSF) successfully spun off its fueling division, Cavendish Hydrogen, allowing it to focus solely on electrolyzer technology.
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The company secured a significant technology licensing agreement with Reliance Industries, providing a new revenue stream and enhancing its competitive edge.
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NEL ASA received USD 41 million in additional tax credits for manufacturing expansion in Michigan, supporting future growth.
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The company completed construction on Line 2 at Heroya, increasing its annual alkaline production capacity to 1 gigawatt.
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NEL ASA has a strong cash position with NOK 2.2 billion, reducing the need for immediate additional equity financing.
Negative Points
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Revenues in the second quarter were down 10% year-over-year, indicating challenges in maintaining sales momentum.
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The company reported a negative EBITDA of NOK 79 million, reflecting ongoing profitability challenges.
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NEL ASA's cash balance decreased from NOK 4.1 billion last year to NOK 2.2 billion, partly due to investments in Cavendish Hydrogen.
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There is uncertainty regarding the execution of capacity reservation agreements, which could impact future production planning.
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The company faces risks related to order backlog, including potential delays and cancellations, which could affect future revenue.
Q & A Highlights
Q: Can you clarify the utilization rates for Heroya's Line 2 and the impact on EBITDA breakeven? A: We will run Heroya at less than full speed for the next couple of quarters due to our backlog. The pace towards EBITDA breakeven depends on the volume we produce and deliver, so quicker order intake will accelerate reaching positive EBITDA. - Kjell Bjornsen, CFO
Q: What is Nel's approach to exploring new technologies like solid oxide and AEM? A: We are evaluating solid oxide and AEM technologies, which show promising theoretical KPIs. However, more time is needed to reach competitive CapEx levels. Solid oxide requires high temperatures, suitable for specific processes, while AEM combines benefits of PEM and alkaline technologies. These are not expected to be highly relevant this decade. - Hakon Volldal, CEO