Nel Announces Revenue Growth Despite Substantial Losses
Recently, Nel announced growth in its revenue, operating income, and order intake. However, the company also disclosed substantial losses due to the negative impact of fueling and the low margins of its electrolyser projects.

In the first quarter of 2023, the Norwegian company specialising in electrolyser manufacturing disclosed that its revenue and operating income amounted to NOK 359 million ($33.77 million), representing a 68% increase from the corresponding period in 2022. Notably, all segments of the company, including fuelling, PEM electrolysers, and alkaline electrolysers, recorded growth.

The company also revealed that it had received orders worth NOK 580 million ($54.53 million), with 96% of the total coming from electrolysers. This amount represents a significant increase of 105% compared to the order intake in the first quarter of 2022.

Despite the positive financial results, Nel reported a negative EBITDA of NOK -121 million (-$11.37 million) for Q1 of 2023, which is an improvement from NOK -152 million (-$14.29 million) in the same period in 2022. According to Nel, this was primarily caused by significant losses in fuelling, low-profit margins on electrolyser projects signed in 2020/21, and the increased expenses of personnel required to prepare for large-scale projects.

Nel’s net loss for the first quarter of 2023 amounted to NOK -192 million (-$18.05 million), which the company attributes to losses from operations and a “net negative unrealised fair value adjustment from shareholdings” of NOK -76 million ($-7.15 million). In comparison, during the same period in 2022, there was a positive unrealised fair value adjustment of NOK 270 million ($25.4 million).