Everfuel’s investment gave Nel a billion profit in the fourth quarter – E24

Nel reports a pre-tax profit of NOK 1.3 billion in the fourth quarter, down from minus NOK 93 million in the same period last year.

The result is reinforced by a revaluation of the value of the stake in Everfuel of NOK 1.5 billion, based on the price of NOK 125 in December. Today’s price is 110 kr.

The Everfuel hydrogen company went public last fall. The share price has risen more than 250 percent in the last three months. Nel claims that a NOK 10 share price change will result in a gain or loss of around NOK 120 million.

Revenue increased to NOK 229 million from NOK 176 million in the fourth quarter of last year. At the same time, operating profit fell to minus 139 million from minus 62 million.

The company further warns that the negative consequences of the corona pandemic on revenues and operations are expected to persist beyond 2021. In the longer term, Nel maintains his positive view of the outlook for the industry.

Big investment means negative operations in 2021

“The fourth quarter was another busy period for Nel, with several major project awards and preparations for the technology roadmap supporting our new goal of producing $ 1.5 green hydrogen by 2025,” says Nel CEO Jon Andre Løkke, in the announcement of the stock exchange.

Nel recently announced a significant investment in green hydrogen in the coming years. The company will employ more than 100 people and drastically reduce the costs of hydrogen production.

It is also repeated in the recent quarterly report that the investment will lead to a significant negative gross operating profit in 2021.

The order book has grown by more than 90 percent since Q4 2019 to approximately NOK 980 million, and the company now has a cash position of NOK 2.3 billion.

Nel supplies hydrogen electrolysers and filling stations to the transportation industry. An electrolyzer separates hydrogen from water using electricity (electrolysis).

Nel makes electrolysers at its Notodden plant, as well as a plant in the US, but has big expansion plans.

The stock exchange announcement can be found here.