Earnings Release • Apr 30, 2015
Earnings Release
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The table relates to the consolidated figures for NEL ASA.
| 2015 | 2014 | 2014 | 2014 | |
|---|---|---|---|---|
| (Unaudited figures NOK million) | Q1 | Q4 | Q1 | Full year |
| Operational revenue | 17.6 | 12.1 | 0.0 | 12.6 |
| Total operating cost | 19.6 | 19.1 | 4.4 | 25.2 |
| EBITDA | 1.5 | -3.5 | -4.3 | -9.5 |
| EBIT | -2.1 | -7.1 | -4.4 | -13.2 |
| Pre‐tax profit | -1.6 | -6.1 | -4.4 | -11.6 |
| Net profit | -0.6 | -1.0 | -4.4 | -6.5 |
| Net cash flow from operating activities | -8.4 | 14.5 | -6.4 | 4.4 |
| Cash balance end of period | 164.5 | 98.5 | 5.2 | 98.5 |
20 April: NEL announced that it has increased its ownership in Hyme AS, a provider of design and technical solutions for hydrogen refuelling stations, from 31 to 56.8 %. The increase in ownership is part of NEL's strategy to grow within the hydrogen refuelling market. Hyme AS was established in mid 2014 by NEL and three Scandinavian partners.
NEL is the first dedicated hydrogen company on the Oslo Stock Exchange. After acquiring NEL Hydrogen AS and raising capital in 2014, NEL ASA in the first quarter completed an oversubscribed subsequent offering of 10 million new shares at a subscription price of NOK 1.30.
Through these transactions, the foundation has been built for a new business strategy for NEL ASA (formerly Diagenic ASA).
In the first quarter, NEL had revenues of NOK 17.6 million, compared with NOK 12.1 million in the preceding quarter (fourth quarter 2014). Comparisons are made with the preceding quarter as the business transformation makes comparisons to the first quarter of 2014 of no value.
EBITDA was NOK 1.5 million, compared with a loss of NOK 3.5 million in the preceding quarter. After depreciation of excess value related to the acquisition of NEL Hydrogen AS in accordance with IFRS accounting standards of NOK 3.5 million, EBIT was negative NOK 2.1 million, compared with negative NOK 7.1 million in the preceding quarter.
Net loss was NOK 0.6 million, compared with a loss of NOK 1.0 million in the preceding quarter.
The cash balance at the end of the first quarter was NOK 164 million, up from NOK 98 million at the beginning of the quarter.
NEL aims to maintain and grow its position as a world-leading manufacturer of hydrogen electrolysers. Rapid marked growth is expected as hydrogen fuel cell vehicles increasingly are introduced. NEL aims to deliver a complete solution, from production of hydrogen to refuelling of vehicles, through the partly owned company Hyme AS. The recently announced increased ownership in Hyme AS illustrates NEL's belief in and commitment to this market.
NEL delivered the world's first publically available hydrogen refuelling station in Iceland in 2003 and offers solutions for both trucked-in hydrogen supply and on-site electrolytic production. Through NEL's already existing international presence, NEL is well positioned to offer this concept globally. This initiative is timed with the global launch of hydrogen fuel cell electric vehicles in 2015. Toyota will introduce the Mirai in California later this year, and other major automobile manufacturers are also launching fuel cell electric vehicles.
In addition to its use as fuel for cars, NEL sees great potential for hydrogen as an energy carrier related to the growth in renewable energy and the shift from fossil to renewable fuels. Energy markets increasingly will demand flexible production of hydrogen in order to follow the natural fluctuations in renewable electricity generation from sources such as wind and solar power. The market is still in a nascent stage, but it is potentially several times larger than the present electrolyser market.
NEL's growth strategy is rooted in history. NEL Hydrogen AS is a world-leading supplier of hydrogen production plants based on alkaline water electrolyser technology. The history dates back to 1927 when Norsk Hydro developed large-scale electrolyser plants providing hydrogen for use in ammonia production with fertilizer as the end product.
Traditionally, hydrogen is used as input to a number of industrial applications, as industrial feedstock, protective atmosphere, and other purposes. Sectors include: food, chemicals/refining, metallurgy, glass production, electronics, generator cooling, and production of polysilicon for use in solar panels.
NEL's main product is its line of atmospheric hydrogen electrolysers suited for large-scale applications and customers who want a stable supply of hydrogen. NEL Hydrogen started commercial sales of electrolysers in the 1970s and has sold more than 500 electrolysers to customers in various industries across Europe, South America, Africa and Asia.
With no carbon footprint, hydrogen is together with electricity set to become the main energy carrier of the future. Based on our unique electrolyser technology with superior energy efficiency, design and scalability, NEL aims for profitable growth aligned with a zero‐emission vision of the future.
NEL still holds five patent families and over 100 patents granted within healthcare. NEL continues to evaluate opportunities for its healthcare division, including, but not limited to, possible mergers, acquisitions and strategic partnerships.
Matters discussed in this report may constitute forward-looking statements.
The forward-looking statements in this report are based on various assumptions, many of which are based upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult to predict and beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
Oslo, 29 April 2015
The Board of Directors
| Øystein Stray Spetalen | Martin Nes | Anne Marie Gohli Russell |
|---|---|---|
| Board member | Chairman | Board Member |
| (Sign) | (Sign) | (Sign) |
| Eva Dugstad | Jan Christian Opsahl | Lars Christian Stugaard |
| Board member | Board member | CEO |
| (Sign) | (Sign) | (Sign) |
| Statement of comprehensive income | Note | 2015 | 2014 | 2014 |
|---|---|---|---|---|
| (figures NOK thousands) | Q1 | Q1 | 1 Jan-31 Dec. | |
| Operating Income | ||||
| Other operating income | 17 597 | 0 | 12 067 | |
| Total operating revenue | 17 597 | 0 | 12 067 | |
| Operating expenses | ||||
| Cost of goods sold | 7 038 | 0 | 3 361 | |
| Total cost of goods sold | 7 038 | 0 | 3 361 | |
| Operating costs | ||||
| Wages and social costs | 4 481 | 1 296 | 7 342 | |
| Depreciation | 3 554 | 100 | 3 651 | |
| Devaluation goodwill | 0 | 0 | 0 | |
| Other operating costs | 4 574 | 3 041 | 10 885 | |
| Total other operating costs | 12 610 | 4 437 | 21 878 | |
| Total operating costs | 19 648 | 4 437 | 25 239 | |
| Operating profit (loss) | -2 051 | -4 437 | -13 173 | |
| Financial income | 760 | 58 | 1 813 | |
| Financial expenses | 280 | 2 | 274 | |
| Net financial income/expense | 480 | 56 | 1 539 | |
| Pre-tax profit (loss) | -1 571 | -4 381 | -11 633 | |
| Estimated tax payable | -932 | 0 | -5 122 | |
| NET PROFIT (LOSS) | -639 | -4 381 | -6 511 | |
| Other comprehensive income | 0 | 0 | 0 | |
| Comprehensive income | -639 | -4 381 | -6 511 | |
| Net profit per share (figures in NOK) | 0,00 | -0,54 | -0,02 | |
| Net profit per share after dilution | 0,00 | -0,54 | -0,02 |
| (figures NOK thousands) 31 March 31 March 31 Dec ASSETS Fixed assets Technology 8 550 0 8 775 Customer relationship 31 350 0 32 175 Customer contracts 4 800 7 200 R&D 99 0 Goodwill 60 799 0 60 799 Total non-current assets 105 598 0 108 949 Land, buildings and real estate Land, buildings and real estate 3 856 0 3 893 Total land, buildings and real estate 3 856 0 3 893 Fixed assets Fixtures and fittings, tools, etc. 1 106 0 1 174 Total fixed assets 1 106 0 1 174 Financial assets Investments in shares 263 263 Total financial assets 263 263 0 Total fixed assets 110 823 114 278 Current assets Inventory 8 839 0 6 071 Trade receivables 22 887 0 18 927 Other receivables 3 395 2 482 1 406 Cash and cash equivalents 164 479 5 188 98 497 Total current assets 199 599 7 670 124 901 TOTAL ASSETS 310 422 7 670 239 179 EQUITY AND LIABILITIES Equity Share capital 79 786 1 632 67 786 Paid in equity 190 931 44 909 134 663 Retained earnings -639 -42 353 -6 511 Total equity 270 078 4 188 195 937 Provisions Deferred tax 15 052 0 15 984 Total provisions 15 052 0 15 984 Other long term liabilities Other long term liabilities 7 318 0 7 578 Total other long term liabilities 7 318 0 7 578 Liabilities Accounts payable 2 210 803 3 100 Dividends Tax payable 0 0 0 Social security, VAT etc. payable 706 578 1 735 Other current liabilities 15 059 2 101 14 847 Total current liabilities 17 974 3 482 19 681 TOTAL EQUITY AND LIABILITIES 310 422 7 670 239 179 |
Statement of financial position | Note | 2015 | 2014 | 2014 |
|---|---|---|---|---|---|
| Statement of changes in Equity and Number of Shares | Share | Other | Other | Total | Number | |
|---|---|---|---|---|---|---|
| (figures in NOK/numbers) | Note | premium | reserves | equity | equity | of shares |
| As at 1st January 2014 | 45 016 | -310 | -37 662 | 8675 | 8 159 873 | |
| Allocation of comprehensive loss | $-37972$ | 310 | 37 662 | $\Omega$ | ||
| Shares owned by company | $-2085$ | $-2085$ | ||||
| Transaction cost | $-5342$ | 0 | $-5341$ | |||
| Increase of capital 15.4.14 | 30 000 | 50 000 | 100 000 000 | |||
| Increase of capital 20.10.14 | 79 615 | 115 000 | 176 923 077 | |||
| Increase of capital 13.11.14 | 24 231 | 35 000 | 53 846 154 | |||
| Consideration | 1 200 | 1 200 | ||||
| Comprehensive income 1.1.-31.12.2014 | $-6511$ | $-6511$ | ||||
| As at 31th December 2014 | 135 548 | 0 | -7396 | 195 937 | 338 929 104 | |
| $\Omega$ | ||||||
| Transaction cost | $-3220$ | $-3220$ | ||||
| Increase of capital 12.1.2015 | 55000 | 65 000 | 50 000 000 | |||
| Increase of capital 2.2.2015 | 11000 | 13 000 | 10 000 000 | |||
| Comprehensive income 1.1.-31.3.2015 | -639 | -639 | ||||
| As at 31st March 2015 | 198 328 | 0 | -8 036 | 270 078 | 398 929 104 |
| CASH FLOW STATEMENTS | Note | 2015 | 2014 | 2014 |
|---|---|---|---|---|
| (figures NOK thousands) | Q1 | Q1 | 1 Jan-31 Dec | |
| Cash flow from operating activities | ||||
| Pre-tax profit (loss) | -1 571 | -4 381 | -6 512 | |
| Income taxes paid | 0 | 0 | 0 | |
| Ordinary depreciation | 3 554 | 0 | 3 551 | |
| Impairment of fixed assets | 0 | 100 | 100 | |
| Fair value granted option rights | 0 | 0 | 0 | |
| Loss on sale of fixed assets | 0 | 0 | 0 | |
| Change in pension scheme liabilities | 0 | 0 | 0 | |
| Change in inventories, accounts | ||||
| receivables and accounts payable | -7 618 | 582 | 9 913 | |
| Change in other short-term receivables | ||||
| and other short-term liabilities | -2 806 | -2 735 | -2 704 | |
| Net cash flow from operating activities | -8 440 | -6 433 | 4 348 | |
| Cash flow from investment activities | ||||
| Proceeds from sale of fixed assets | 0 | 235 | 0 | |
| Acquisitions of fixed assets | -99 | 0 | -37 495 | |
| Net cash flow from investing activities | -99 | 235 | -37 495 | |
| Cash flow from financing activities | ||||
| Contribution of share capital | 74 780 | -107 | 112 573 | |
| Payment of short and long term liabilities | -260 | 0 | 7 578 | |
| Net cash flow from financing activities | 74 520 | -107 | 120 151 | |
| Net change in cash and cash equivalents | 65 981 | -6 304 | 87 005 | |
| Cash and cash equivalents | 164 479 | 5 188 | 98 497 |
The financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"). This financial information should be read together with the financial statements for the year ended 31st of December 2013 prepared in accordance with International Financial Reporting Standards ("IFRS").
The accounting policies used and the presentation of the Interim Financial Statements are consistent with those used in the latest Annual Financial Statements.
The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.
The financial statement is presented on the going concern assumption under International Financial Reporting Standards.
As per the date of this report the Company has sufficient working capital for its planned business activities over the next twelve month period.
NEL Hydrogen AS is a global leader in the supply of hydrogen‐based electrolyser plants and hydrogen fuelling stations. The company's production facility is located in Notodden, Norway. NEL ASA holds 100% of the shares in NEL Hydrogen AS.
| 2015 | 2014 | |
|---|---|---|
| (figures NOK thousands) | Q1 | Full year |
| Total operating revenue | 17 597 | 69 326 |
| Total operating cost | 15 899 | 54 515 |
| Operating profit | 1 698 | 14 515 |
| Net Financial income (expense) | -30 | 591 |
| Pre-tax profit (loss) | 1 667 | 15 105 |
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