Q2 2024 Nel ASA Earnings Call Transcript
Key Points
- NEL ASA (NLLSF) successfully spun off its fueling division, Cavendish Hydrogen, allowing it to focus solely on electrolyzer technology.
- The company secured a significant technology licensing agreement with Reliance Industries, providing a new revenue stream and enhancing its competitive edge.
- NEL ASA received USD 41 million in additional tax credits for manufacturing expansion in Michigan, supporting future growth.
- The company completed construction on Line 2 at Heroya, increasing its annual alkaline production capacity to 1 gigawatt.
- NEL ASA has a strong cash position with NOK 2.2 billion, reducing the need for immediate additional equity financing.
- Revenues in the second quarter were down 10% year-over-year, indicating challenges in maintaining sales momentum.
- The company reported a negative EBITDA of NOK 79 million, reflecting ongoing profitability challenges.
- NEL ASA's cash balance decreased from NOK 4.1 billion last year to NOK 2.2 billion, partly due to investments in Cavendish Hydrogen.
- There is uncertainty regarding the execution of capacity reservation agreements, which could impact future production planning.
- The company faces risks related to order backlog, including potential delays and cancellations, which could affect future revenue.
Good morning, and welcome to Nel's second-quarter 2024 results presentation. Today, July 17, 2024. My name is Håkon Volldal, I am the CEO. With me today, I have Kjell Christian Bjørnsen, our CFO; and Wilhelm Flinder, our Head of Investor Relations.
We have the following agenda. Nel in brief, highlights from the second quarter, strategic and commercial update, production update, technology update, and as usual, we round it off with a Q&A.
After the spin-off of Cavendish Hydrogen, the former fueling division of Nel, we are now a fully dedicated electrolyzer technology company. We have a century of electrolyzer innovation behind us, and we are pushing for new technologies. We have one single focus and that is to deliver the most energy-efficient and reliable electrolyzers in the world. And we do that together with world-class partners in order to deliver the best-in-class turnkey systems.
Nel is listed on the Oslo Stock Exchange, as you might know, and we have been listed there since 2014. We are a leading pure-play
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