Q4 2024 Nel ASA Earnings Call Transcript
Key Points
- NEL ASA (NLLSF) reported a significant improvement in EBITDA, reducing losses by 60% over the past two years.
- The company has a strong cash reserve of NOK1.9 billion, providing a solid financial foundation.
- NEL ASA secured a EUR135 million grant to industrialize its next-generation pressurized technology in Norway.
- The company has expanded its manufacturing capacity to 1.5 gigawatts, with fully automated facilities in Norway and the US.
- NEL ASA has established partnerships with industry leaders such as Reliance, Saipem, and Korea Hydro and Nuclear Power, enhancing its market position.
- Order backlog decreased from NOK2.4 billion in Q1 2023 to NOK1.6 billion by the end of Q4 2024, indicating a decline in new orders.
- The company announced a temporary halt in production at Herøya due to lower order intake in 2023 and 2024.
- NEL ASA is facing challenges with some projects at risk of cancellation, including a large project in the US and another in Germany.
- The PEM segment has not shown the expected progress, with revenues down 12% year on year.
- The company is undergoing organizational downsizing, reducing capacity by 25% to align with market demand.
Good morning from Oslo and welcome to Nel's fourth-quarter and full-year 2024 results presentation. My name is Hakon Volldal. I am the CEO of Nel. With me today., I have, Kjell Christian Bjørnsen, our CFO; and Wilhelm Flinder, Head of Investor Relations.
The agenda for today looks as follows, short explanation of Nel and what we do. Then we jump immediately into the fourth-quarter highlights and the full year 2024 highlights. We have a commercial update, a technology update, and we end with a summary and outlook before we turn to questions and answers.
Now Nel, in brief, some of you have seen this 20-30 times, but for those of you that are new to Nel, Nel is a fully dedicated electrolyzer technology company. We started back in 1927 as part of Norsk Hydro, became listed on the Oslo Stock Exchange in 2014, and we have sold more than 7,000 electrolyzers to more than 80 countries since our founding in 1927.
We have 1.5 gigawatts of manufacturing capacity annually, 1 gigawatt in Norway for alkaline electrolyzers, and 500 megawatts
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