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Nel’s Q3 results missed the company-complied consensus on revenues but were ahead of them on EBITDA. The order intake declined yoy but the order backlog remained at a high level. Revenue growth was propelled by the electrolyser division (80% of Q3 revenues) and the EBITDA loss narrowed yoy. Profitability showed a yoy improvement in the Electrolyser division with miniscule improvements also visible in Fueling. The former, however, is yet to show a further step-up on its margin improvement ambitio
Companies: NEL (NEL:STO)NEL ASA (NEL:OSL)
AlphaValue
Nel released a decent set of Q2 figures with revenues beating the company-compiled consensus and profitability bang in line. Order intake and the order backlog continued to grow yoy. Revenue growth was driven by soaring revenues in the Electrolyser division (82% of Q2 revenues) and the EBITDA loss narrowed yoy. The profitability in the Electrolyser division has shown improvements for two consecutive quarters and we expect more of the same in the H2.
Nel’s Q1 results were better than expected versus the company-compiled consensus. Order intake was once again solid and the order backlog also registered good growth. Revenue growth was seen across both electrolyser and fuelling with the EBITDA loss narrowing across divisions. Nel has sufficient liquidity on its books after completing the latest NOK1.6bn private placement and is on track with planned capacity expansions. While the company does not provide an outlook, we feel comfortable with our
Nel’s 2022 results were ahead of expectations on revenues and orders but below on profitability. Order and revenue growth were supported by growing demand across both businesses. Profitability was, however, dragged down due to higher losses in fuelling, lower margins on legacy projects, and increased personnel costs. Nel has sufficient liquidity following another recent capital raise. The company is planning an expansion at its PEM factory and is also close to finalising the site for its US giga
We initiate coverage of Nel, another pure play in the hydrogen sector. Based in Norway, Nel has almost a 100-year-old history of delivering Alkaline electrolysers and has recently diversified into PEM. Additionally, Nel also sells hydrogen fuelling stations that serve fuel cell electric vehicles. The company has electrolyser manufacturing plants in Norway and the USA, with fuelling station manufacturing located in Denmark. Nel’s shares are listed on the Oslo Stock Exchange.
We raise our TP in Nel to NOK 35 (25) based on a combination of further positive developments in the hydrogen space and insights gained at the company’s CMD. Since our previous update, more countries have launched hydrogen strategies, earmarked sizeable funds to stimulate demand and Nel has demonstrated its strong position through e.g. the Iberdrola contract. In our base case, we find the current share price fair, hence downgrade to Hold.
Companies: NEL ASA
Arctic Securities
Nel launching a USD 1.5/kg green hydrogen target by 2025 Implying electrolyser system costs in the range 200-300 USD/kW Planning a >2.5x PEM capacity expansion in addition to alkaline Except for capex, limited new specific guidance
Revenues and EBITDA fairly in line with estimates and guiding Though, flat revenue development YoY could be seen as a bit soft Partnerships with Statkraft and Iberdrola are the highlights so far this fall Limited new information and we don’t expect any big estimate changes
Revenue growth of 21 % YoY EBITDA of NOK -49m – cash position of NOK 2.566m All time high order backlog - increase of 75 QoQ Capacity per production line likely to be upped to 500 MW – Bullish
We raise our TP in Nel to NOK 25 on the back of an updated modelling approach, where our new base case DCF value amounts to 23 NOK/sh. Our inputs for hydrogen demand are supported by e.g. the EU’s repeated commitment to the “green deal” with corresponding ambitious targets for green hydrogen. Following its recent placement, Nel is very well capitalized and management can focus on organizing the company so as to yield the best results in the long-term.
Marginal revenue growth YoY Adj. EBITDA of NOK -41.7m – negatively impacted by growth initiatives All time high order backlog No change to long-term expansion plan
18% and 41% revenue growth QoQ and YoY, respectively EBITDA and cash position already well-known following trading update Cheaper renewable energy and political forces to drive market expansion Hosting its first capital markets day in June this year
Research Tree provides access to ongoing research coverage, media content and regulatory news on NEL ASA. We currently have 93 research reports from 5 professional analysts.
The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme
Companies: Renold plc
Cavendish
Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k
Companies: Capital Limited
Tamesis Partners
Companies: BILN ELCO NXQ CUSN ATG
FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively
Companies: Billington Holdings Plc
Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
Companies: Plant Health Care PLC
Companies: 88E RNO TRIN KRM EXR BOOM
discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli
Companies: discoverIE Group PLC
Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
Companies: Severfield Plc
Edison
Companies: Iofina plc
Canaccord Genuity
Companies: PLL TLG HZM SAV KAV KP2 SVML
SP Angel
Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.
Progressive Equity Research
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Liberum
Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.
Companies: Invinity Energy Systems PLC
Longspur Clean Energy
Companies: ATOME PLC
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