Event in Progress:
Discover the latest content that has just been published on Research Tree
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 34 research reports from 5 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
Companies: FOG PEB KBT EMR TIME GETB JNEO
Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
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
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
Companies: FOG TND BVXP ACC HDD
Companies: Flowtech Fluidpower plc
Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
Companies: Michelmersh Brick Holdings PLC
Canaccord Genuity
Companies: BILN IGP RBN SBTX
Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
Share: