Q2 2025 Nel ASA Earnings Call Transcript
Key Points
- NEL ASA (NLLSF) reported a solid cash balance of NOK1.9 billion, providing financial stability.
- The company has executed a cost reduction program, reducing personnel expenses and overall costs.
- NEL ASA (NLLSF) is making significant progress in technology development, particularly with its next-generation pressurized alkaline and PEM systems.
- The company has a large and increasing pipeline of projects, indicating potential future growth.
- NEL ASA (NLLSF) has strategic partnerships with major companies like Samsung E&C and Saipem, enhancing its market position.
- Revenue from contracts with customers declined by 48% compared to the previous year, indicating reduced project activity.
- The company reported a negative EBITDA of NOK86 million, reflecting ongoing financial challenges.
- Order intake was low at NOK71 million, significantly down from NOK311 million in the first quarter.
- Statkraft canceled a 40-megawatt alkaline electrolyzer contract, impacting the order backlog.
- Final investment decisions for projects continue to be delayed, affecting short-term order intake and revenue.
Good morning from sunny Oslo. We are ready to present Nel's second quarter 2025 results. My name is Hakon Volldal. I am the CEO. With me today, I have our CFO, Kjell Christian Bjornsen; and our Head of IR and Communications, Wilhelm Flinder.
We have the following agenda. I'll skip the Nel in brief section today. We will focus on the second quarter 2025 highlights. We'll have a commercial update, a technology update. And as usual, at the end, Q&A session.
The quarterly highlights are as follows, we had revenue from contracts with customers of NOK174 million. We had a negative EBITDA of NOK86 million; order intake NOK71 million; order backlog ended at NOK1.25 billion; and a cash balance at NOK1.9 billion.
Among the highlights in the second quarter, we -- our partners, Samsung E&A, launched its CompassH2 hydrogen plant solution with Nel Inside. Statkraft canceled, unfortunately, the 40-megawatt alkaline electrolyzer contract they signed back in 2022. And we also signed an MOU with HydePoint to co-develop modular hydrogen
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