Norway's Nel Q3 revenue drops on lower Alkaline segment activity

Overview

• Norway hydrogen tech firm's Q3 revenue fell 63% yr/yr on lower Alkaline segment activity

• Company's Q3 net loss widened, mainly due to higher operating loss

• Order intake jumped 339% yr/yr, driven by strong PEM segment momentum

Outlook

• Company says it is well-positioned to benefit as hydrogen market grows

• Company expects profitability once hydrogen market enters robust growth phase

• Company continues to develop next-generation electrolyser technology

Result Drivers

• PEM SEGMENT MOMENTUM - Co said improved project execution and competitive product drove strong PEM segment revenue and order intake

• CONTAINERIZED CONTRACTS - PEM segment revenue growth attributed to containerized electrolyser contracts

• ALKALINE SEGMENT DECLINE - Co said lower activity in Alkaline segment led to reduced group revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the renewable energy equipment & services peer group is "buy."

• Wall Street's median 12-month price target for Nel ASA is NOK2.00, about 7.6% below its October 14 closing price of NOK2.17

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)