Nel ASA

Earnings Release • Nov 1, 2018

Nel ASA: Third Quarter 2018 Results

Nel ASA: Third Quarter 2018 Results

(Oslo, November 1, 2018) Nel ASA ("Nel") reported revenues in the third quarter

of 2018 of NOK 116.0 million, up from NOK 111.7 million in the third quarter of

2017. Nel received several purchase orders during the quarter, recently

announced the construction of the world's largest electrolyzer manufacturing

plant and reiterates a strong market outlook.

"The third quarter of 2018 was a hectic quarter, reflecting both the momentum we

are gaining across the world, as well as our ambitions for the future. This

includes announcing the construction of the world's largest electrolyzer plant

in Norway, opening our new state-of-the-art H2Station factory in Denmark, and

also key purchase orders like the first power-to-gas project in Australia. Not

least, our H2BusEurope project, alongside other leading industry partners, has

been proposed for a grant award of around EUR 40 million. We are all hands on

deck as we move forward and continue our efforts to develop Nel further," says

Jon André Løkke, Chief Executive Officer of Nel.

In the third quarter of 2018, Nel reported revenues of NOK 116.0 million,

compared to NOK 111.7 million in the same quarter of 2017. The Fueling and

Solutions segments had a good quarter, while the Electrolyser segment was

negatively impacted by certain project delays and lower activity within the

global hydro power plant market. The adjusted EBITDA ended at NOK -16.8 million

(-10.5), adjusting for non-recurring and other cost of NOK 36.5 million

following cost overrun on two specific projects, legal cost related to the US

settlement with PDC Machines, Inc. and other issues. The reported EBIT was NOK

-66.3 million (-33.3).

The order backlog amounted to NOK 365.3 million, which includes the two demo

hydrogen fueling stations for Nikola's fleet of prototype hydrogen trucks, but

does not include the exclusive commercial station contract, which Nel and Nikola

are jointly working on to determine exact timing of deliveries, as well as

detailed station design.

"Overall, we are not satisfied with the revenue development, nor the EBITDA for

the quarter. We are, however, expecting that recently implemented cost

reductions across the majority of our product range, as well as further

alignment of our sales force, will take us back on a more aggressive growth

path, while delivering on our long-term ambition of being in the forefront of

the industry," says Løkke.

The net cash balance at the end of the quarter ended at NOK 434.1 million. The

company raised NOK 46.8 million in gross proceeds in a subsequent offering

during the quarter, following the NOK 281 million private placement in June

2018. The proceeds will primarily be used to fund the expansion of the

production facility at Notodden, as well as product developments to prepare for

deliveries to Nikola. Nel also invested USD 5 million into Nikola as part of

their C-round financing during the third quarter, further strengthening the

partnership between Nel and Nikola.

"The activity within hydrogen across the globe has never been higher, nor has

the value of our pipeline. In this environment, we are working hard and making

tough priorities, constantly balancing between current business and longer-term

strategic positioning. We target to maintain a leadership position with a global

presence, cost leadership, and preferred-partner status for industry

participants," Løkke concludes.

Nel will host a presentation at 08:00 CET at Hotel Continental in Oslo on

November 1, 2018. A live webcast of the call will also be available on the

company's website, www.nelhydrogen.com/webcast, and on

http://webtv.hegnar.no/presentation.php?webcastId=97451404.

The third quarter 2018 report and presentation are enclosed and available

through www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com

ENDS

For further information, please contact:

Jon André Løkke, CEO, Nel ASA, +47 907 44 949

Bent Skisaker, CFO, Nel ASA, +47 468 21 693

About Nel ASA | www.nelhydrogen.com

Nel is a global, dedicated hydrogen company, delivering optimal solutions to

produce, store and distribute hydrogen from renewable energy. We serve

industries, energy and gas companies with leading hydrogen technology. Since its

origin in 1927 as part of Norsk Hydro, Nel has a proud history of development

and continuous improvement of hydrogen plants. Our hydrogen solutions cover the

entire value chain from hydrogen production technologies to manufacturing of

hydrogen fueling stations, providing all fuel cell electric vehicles with the

same fast fueling and long range as conventional vehicles today.