Nel ASA has reported revenues for the second quarter (Q2) 2019 of NOK 122.5m ($13.6m), in line with company outlook, and an all-time high order backlog of NOK 568m ($63m) at the end of the quarter.

Nel booked a provision of NOK 35m ($3.9m) to cover estimated cost, net of estimated insurance coverage, related to the incident at the Kjørbo hydrogen station, and is on-track getting stations back in operations.

“Nel ended the quarter with an all-time high order backlog and solid pipeline of prospects, reflecting the market opportunities provided by our leading technology across segment,” said Jon André Løkke, CEO of Nel.

In Q2 (2019), Nel reported revenues of NOK 122.5m ($13.6m), in line with company outlook, compared to NOK 135.8m ($15.1m) in Q2 2018.

Adjusted EBITDA ended at NOK -26.3m (-$2.9m), adjusted for non-recurring and other ramp-up costs, in addition to a provision of NOK 35m ($3.9m), net of estimated insurance coverage, related to the incident at the Kjørbo hydrogen station, located outside of Oslo, Norway.

“We are happy to announce that stations in Korea, Denmark, and largely in the US, are back in operation, while we are progressing well with the verification programme in Europe.”

Jon André Løkke, Nel’s CEO

“Nel has unwavering ambition: No incidents at sites with our technology. The Kjørbo incident was extremely serious and we deployed our full resources to resolve the situation,” said Løkke.

“The root cause of the incident was identified as an assembly error of a specific plug in a hydrogen tank in the high-pressure storage unit. Following the identification of the root cause, Nel initiated an inspection and integrity verification programme for the high-pressure storage units with similar plugs.”

“We are happy to announce that stations in Korea, Denmark, and largely in the US, are back in operation, while we are progressing well with the verification programme in Europe.”

The reported EBITDA, including the provision for the Kjørbo incident was NOK -72.6m ($8m), EBIT was NOK -90.7m ($10m) and the cash balance ended at NOK 697.7m ($77.3) at the end of the second following the successful subsequent offering of 12.5 million new shares.

The net proceeds from the subsequent offering will be used for continued investment in development, innovation and technology, in addition to improve Nel’s positioning to benefit from markets with high activity and growth momentum.

Nel received several purchase orders in the second quarter and the order backlog ended at an all-time high NOK 568m ($63m) at the end of the quarter.

After the closing of the quarter, Nel announced a purchase order for two hydrogen fuelling stations for HyNet, a special purpose company established to roll-out 100 hydrogen fuelling stations in Korea by 2022.

“Korea has a national target of more than 300 hydrogen stations by 2022 and we are encouraged by having received a total of ten purchase orders so far in 2019. We’re happy that the efforts we have put in through several years of good dialogue, good partnership and establishing a local presence in Kora, is bearing fruit.”

“We can safely say we have had a breakthrough in this dynamic and important market, and I’m very proud of what our team has accomplished so far,” Løkke concluded.