Nel ASA reported revenues in the third quarter of 2017 of NOK 111.7m ($13.7m) compared to NOK 24.4m ($3m) in the Q3 of 2016, following the integration of Proton OnSite and increased overall interest for integrated hydrogen solutions.
At the end of the quarter, the company had an all-time high order backlog of approximately NOK 460m ($56.3m).
Nel’s CEO Jon André Løkke affirmed, “Nel experienced a satisfactory third quarter, following the integration of Proton OnSite and a number of contract awards and project deployments that provide a promising outlook for the company.”
The Norwegian-based company said underlying organic revenue growth was just over 50%, excluding Proton Onsite, while on a like-for-like pro-forma basis, the revenue growth was approximately 40%. The high activity level within business development, investments and preparations for productions ramp-up continues as planned.
Also in the third quarter, the EBITDA was negatively affected by the ramp-up costs and ended at NOK -10.5m ($-1.3m), when adjusting for transaction costs related to the Proton acquisition and non-cash share options.
Nel’s cash balance at the end of the third quarter was NOK 85.6m ($10.5m). On 27th September, the company completed a private placement of 88,000,000 new shares at a price of NOK 2.50 ($0.31) per share. The gross proceeds of NOK 220m ($27m) from the private placement were transferred to the company after the closing of the quarter.
“The private placement was oversubscribed, with good interest from existing shareholders and new, high-quality investors. Following the September private placement, the company’s current organic strategy and business plan is well-funded”, explained Løkke.
“Nel experienced a satisfactory third quarter, following the integration of Proton OnSite and a number of contract awards and project deployments that provide a promising outlook for the company.”
Jon André Løkke, CEO of Nel ASA
During the third quarter, Proton OnSite received an additional order for an M-Series, Megawatt scale, hydrogen (H2) electrolyser from Guangdong Synergy Hydrogen Power Technology Co. Ltd (Synergy) in China. The order has a value of up to $1.8 million, and is the fourth system under the previously announced agreement between the two parties, a total value of more than $22 million and 13MW of systems. The additional order confirms the partnership between Nel/Proton, Synergy and the Guangdong province government.
The quarter further marked a strong start to Nel’s H2 partnerships in California, with a purchase order of $8.3m on a combined PEM electrolyser and H2Station® fuelling solution for SunLine Transit Agency (SunLine), which will be the world’s largest combined H2 production and fuelling facility currently being contracted. In addition, Nel received a second purchase order of just over NOK 50m ($6.1m) under the previously announced California framework contract with Shell. Delivery and installation is expected to take place during 2018 for both orders.
Løkke continued, “It has been an exciting third quarter that has highlighted how Nel and Proton complement each other, both in terms of technology and market outreach. The new contracts and repeat purchase orders received during the quarter showcase our combined strength and cutting-edge technology solutions.”
“The underlying project-development pipeline continues to grow, and the company experiences a satisfactory activity level for its prospects and ongoing tender processes. With an all-time high level of sales leads, both in traditional and new markets, Nel is now working at further implementing synergies, targeting continued technology leadership, global presence, cost competitiveness and being the preferred partner for the H2 industry.”