Earnings Release • Nov 16, 2016
Earnings Release
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Interim report
| 2016 | 2015 | 2016 | 2015 | 2015 |
|---|---|---|---|---|
| Q3 | Q3 | Q1-Q3 | Q1-Q3 | Full year |
| 24.4 | 30.8 | 63.8 | 64.4 | 99.9 |
| 37.1 | 32.7 | 103.2 | 77.2 | 118.2 |
| (10.2) | 2.3 | (31.8) | (1.5) | (2.7) |
| (12.8) | (1.9) | (39.3) | (12.9) | (18.3) |
| (12.4) | (1.5) | (38.5) | (11.7) | (27.8) |
| (12.0) | (0.7) | (37.3) | (9.0) | (21.7) |
| (10.5) | (11.1) | (58.9) | (21.0) | (37.8) |
| 223.6 | 224.9 | 223.6 | 224.9 | 313.0 |
Nel reported revenues in the third quarter of NOK 24.4 million (30.8), sequentially up from NOK 13.5 million in the second quarter, with a solid backlog for the fourth quarter of 2016. The operating earnings were impacted by the planned high activity level within business development in new markets as California, investments, and preparation for production ramp-up.
The underlying project development pipeline is strong, and the company continues to experience a high activity level for its prospects and ongoing tender processes.
EBIT was negative NOK 12.8 million (-1.9), including NOK 2.6 million in depreciation of physical and intangible assets. Net loss for the quarter was NOK 12.0 million, compared to a loss of NOK 0.7 million in the same quarter last year.
Total assets were NOK 761.2 million at the end of the third quarter 2016, compared to NOK 714.1 million at the end of the third quarter last in 2015. Total equity was NOK 679.8 million. Thus, the equity ratio was 89 percent.
Net cash flow from operating activities in the third quarter 2016 was negative NOK 10.5 million, compared to negative NOK 11.1 million in the same quarter last year. Net cash flow from investment activities was negative NOK 31.8 million (-8.1). Net cash flow from financing activities was NOK 0.0 million, compared to NOK 91.8 million in the corresponding quarter last year. Nel's cash balance at the end of the third quarter was NOK 223.6 million.
Nel is a global, dedicated hydrogen company, delivering optimal solutions to produce, store and distribute hydrogen from renewable energy. The company serves industries, energy and gas companies with leading hydrogen technology. Since its foundation in 1927, Nel has a proud history of development and continual 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.
The company has three divisions, covering the entire hydrogen value chain: Nel Hydrogen Electrolyser, Nel Hydrogen Fueling, and Nel Hydrogen Solutions.
Production of electrolysers for hydrogen production
Nel Hydrogen Electrolyser is a world-leading supplier of hydrogen production plants based on alkaline water electrolyser technology. The company dates back to 1927, when Norsk Hydro developed large-scale electrolyser plants, providing hydrogen for use in ammonia production with fertiliser as the end-product. Since then, the electrolyser technology has been improved continuously, and Nel Hydrogen Electrolyser has accumulated unique experience and knowledge about hydrogen fueling stations and power-to-gas systems.
Traditionally, hydrogen is used as an input to a number of industrial applications, including as industrial feedstock, to provide a protective atmosphere, and for other purposes. Relevant sectors include food production, chemicals/refining, metallurgy, glass production, electronics, generator cooling, and the production of polysilicon for use in PV solar panels.
Looking ahead, hydrogen will increasingly be utilised as an energy carrier, both to maximise the utilisation of renewable energy and, subsequently, as a sustainable fuel for zero-emission FCEVs. With the commercial introduction of FCEVs already taking place, Nel Hydrogen Electrolyser intends to supply the hydrogen fueling, energy storage and power-to-gas markets.
The water electrolyser market currently accounts for only a small fraction of the total hydrogen market, but is expected to grow significantly in the coming years, primarily driven by increased fueling and energy storage demand. By 2020, 40 percent of renewable electricity is expected to take the form of wind and solar power (Source: IEA).
A number of energy storage projects have been initiated worldwide, and Nel Hydrogen Electrolyser expects this development to be a main driver of demand for hydrogen energy storage in the medium term. The sector has specific interest in Nel Hydrogen Electrolyser, because the market growth is making Nel Hydrogen Electrolyser's portfolio of large-scale products increasingly relevant.
Nel Hydrogen Electrolyser started commercial sales of electrolysers in the 1970s, and has sold more than 850 electrolyser units to a broad range of industries across Europe, South America, Africa and Asia. The company has production facilities in Notodden, Norway, and has a global reach through its in-house sales apparatus and extensive network of agents.
Nel Hydrogen Electrolyser's water electrolysis and atmospheric pressure technologies are considered world-class. The company's long experience in the electrolysis field and sustained research and development efforts over the past 89 years give it a unique technological platform.
The company's Nel A electrolysers are widely respected for their robustness, reliability and energy efficiency. The products set a benchmark for competitors. When the products' flexibility, ease-of-use, high capacity and safety record are added to the list, the solutions are simply unmatched.
Nel has also launched the new containerised NEL C-range electrolysers, thereby offering a low-cost, turn-key solution, representing the world's smallest footprint for containerized, high capacity electrolysers.
The new configurations – Nel C-150 and Nel C-300 – are containerised and will be offered in addition to the existing industrial NEL A-range of electrolysers. The new products will have an output capacity of either 150 and 300 Nm3/hr respectively, which is equivalent to about 330 or 660 Kg/day. The standard gas output pressure will be 200 bar, which makes these products ideal for producing renewable hydrogen integrated with hydrogen fueling stations for cars, busses or other utility vehicles.
In addition, the company is developing the RotoLyzer®, a pressurised, compact electrolyser, which utilises a vertical, rotating cell pack, providing full operational flexibility, while allowing for low production costs. This opens up new market segments for Nel Hydrogen Electrolyser, and provides an ideal solution for hydrogen fueling stations where space is limited, or integration with renewable energy sources. The technology is patented and has been verified through extensive testing.
Nel Hydrogen Fueling (former H2 Logic) is a leading manufacturer of H2Station® hydrogen fueling stations that provides FCEVs with the same fast fueling and long range as conventional vehicles today. Since incorporation in 2003, Nel Hydrogen Fueling has invested significantly in R&D, bringing H2Station® to a level where products are offered to the early market for roll-out of larger networks of hydrogen fueling stations.
Today, Nel Hydrogen Fueling is one of few global leaders on fast fueling for FCEVs. H2Station® technology is in operation in several European countries, providing hydrogen fueling for fuel cell electric vehicles from major car manufacturers.
Nel Hydrogen Fueling was among the first to achieve fast fueling of hydrogen in compliance with the SAE J2601 standard required by the major car manufacturers. In Denmark, Nel Hydrogen Fueling has delivered H2Station® technology for the entire Danish network of hydrogen fueling stations, operated in collaboration with leading oil, energy and gas companies.
Aside from providing fast fueling, H2Station® technology has a long proven track-record of reliable operation with more than 99 percent availability – one among the highest recorded in the world for a scattered network of 24-hour public available hydrogen fueling stations. The ambition is to keep this position and act as a preferred supplier of H2Station® for international infrastructure operators such as oil, energy and gas companies.
NEL Hydrogen Solution offers efficient system integration, project development and sales across segments and is the only provider of integrated solutions along the entire value chain:
Nel Hydrogen Solutions aims to be the preferred business partner for the hydrogen industry in California, Japan and Germany for the development of hydrogen solutions across the value chain, from hydrogen fueling stations networks to large-scale renewable hydrogen production plants. Nel Hydrogen Solutions leverages on the experience from delivering and operating the entire Danish hydrogen network, in collaboration with leading oil-, energy- and gas companies.
Nel Hydrogen Solutions will also be responsible for the deployment of equipment to Uno-X Hydrogen and the building of a network of hydrogen fueling stations that will enable fuel cell electric vehicles to operate between all the major cities in Norway within 2020.
In August 2016, Nel Hydrogen Electrolyser announced the new containerised NEL C-range electrolysers, thereby offering a low-cost, turn-key solution, representing the world's smallest footprint for containerized, high capacity electrolysers.
The existing NEL A-range are already recognised as the benchmark in energy efficiency. The containerised configuration brings a new level of innovative turn-key design, combined with unparalleled efficiency, practical design that enables quick and simple installation and the most compact solution offered in the market today.
The new configurations, Nel C-150 and Nel C-300, will have an output capacity of either 150 and 300 Nm3/hr respectively, which is equivalent to about 330 or 660 Kg/day. With these new products, the customer only need to push a button after connecting electricity and water. The new low-cost, turn-key solutions offer everything of the existing Nel A technology, with its proven reliability and robustness, but with added flexibility and ease-of-use.
The company was also awarded a contract by Marsa, a world-leading producer of margarine and liquid oils, for the delivery of a hydrogen electrolyser plant with supplementary equipment. The agreement has a total value of around EUR 1 million.
The project represents an extension of the existing hydrogen production capacity operated by Marsa and the Ülker Group.
Nel Hydrogen Electrolyser is progressing as planned with the commercialisation of the RotoLyzer® electrolyser, targeting a commercial unit of 10 Nm3/h by 2017, and a larger unit by 2018.
During the third quarter of 2016, Nel Hydrogen Fueling commenced production of the H2Station® CAR-200, a hydrogen fueling station that triples the fueling capacity, while reducing the footprint to one third of the current generation.
The CAR-200 builds on the operational legacy of the former CAR-100, which is used in multiple countries across Europe and has a documented high performance with better than 99 percent availability.
The new CAR-200 dispenser can be located up to 50 meters away, which enables flexible integration of hydrogen alongside other fueling products, even at very compact sites. The new fueling station can be supplied by centralised hydrogen production delivered by truck, as well
as onsite production of hydrogen, enabling Nel to deliver a complete solution to the customer.
The new Herning facility continues to be developed on budget. The investment activities expected in connection with take over and plant rebuild, amounts to NOK 35-40 million in the second half of 2016. The total investments are estimated at NOK 85 million.
The factory will have an annual capacity to manufacture hydrogen fueling stations sufficient to support 200 000 new Fuel Cell Electric Vehicles (FCEV) annually. When ramp-up and plant optimisation is complete, the facility will have a name-plate production capacity of up to 300 fueling stations per year. This will ensure further product improvements over time as well as other scale benefits.
In October, after the closing of the quarter, a Nel Hydrogen Refueling company was awarded two R&D grants totalling EUR 1.1 million from the Danish EUDP program for the continued H2Station® hydrogen technology development.
The third quarter of 2016 was a busy period for Nel Hydrogen solution, with a record high number of sales initiatives and the important submission of the grants tender in California, were the Energy Commission has doubled the Grant Funding Opportunity (GFO) for 2016. The target is to reach 100 hydrogen fueling stations by 2020, of which half have already received funding. The 2016 GFO award is expected to cover 20 stations, to be developed in 2017.
To ensure a successful market entry in California, Nel has both a direct and indirect market penetration strategy:
The allocation for this GFO award is expected during the fourth quarter of 2016.
California also represents an opportunity within hydrogen production, as 33 percent of the hydrogen must be renewable, compared with today´s situation with no renewable hydrogen available on the market.
During the third quarter, the company was awarded a contract by SIA Hydrogenis, a leading hydrogen project developer in Latvia, for the delivery of the new dual capability H2Station®, which offers a combined hydrogen fueling solution for cars and buses in Riga.
Latvia represents an exciting market for Nel, and this is also the first customer where Nel provide a combined fueling solution for both cars and buses. This new dual vehicle fueling capability is an additional feature for our H2Station® product, maximizing the infrastructure utilization, volume throughput and return on investment, in one attractive solution.
The H2Station® bus fueling capability is offered as an add-on feature to fueling solutions for cars, or as a separate solution dedicated for fleets of buses, enabling simultaneous dualpressure refueling at 700bar for cars and 350bar for buses.
The H2Station® contract has a total value or EUR 1.5 million and is planned for delivery in middle of 2017.
After the closing of the quarter, Uno-X Hydrogen AS, a Nel ASA (Nel) joint venture, was awarded a grant of NOK 19.8 million from the Norwegian public enterprise Enova SF, for an expansion of the Norwegian hydrogen network with one hydrogen production facility and two hydrogen fueling stations in Bergen.
The grant marks an important next step in establishing a network of hydrogen fueling stations that will enable wide-spread use of hydrogen vehicles in and between the major cities in Norway by 2020. The support is also a positive signal from the government in recognising hydrogen as an important zero-emission fuel for the Norwegian transport sector.
The awarded funds will be allocated towards establishing two centrally located hydrogen fueling stations at Danmarksplass and Åsane, two of the busiest areas in the Bergen region, as well as an electrolyser for the production of renewable hydrogen for the two stations.
Nel Hydrogen Solutions was also awarded a contract by ASKO, Norway's largest grocery wholesaler, for the delivery of a new solar-powered hydrogen production facility and fueling station solution in Trondheim, enabling ASKO forklifts and delivery trucks to be fueled with locally produced renewable hydrogen.
The solar-powered facility will enable ASKO to fuel their forklifts and delivery trucks with locally produced hydrogen, and offers a zero-emission solution for their trucks covering short and long distances.
The dedicated solar facility will produce energy for Nel's turn-key C-150 containerized electrolyser with the total production capacity of more than 300 kg of hydrogen per day. The H2Station® will be installed with three separate dispensers, two dispensers at 350 bar dedicated for forklifts and trucks, and one dispenser at 700 bar dedicated to cars. The installation will take place during the second half of 2017 at ASKO's facility at Tiller in Trondheim.
The hydrogen production plant is expected to be operational in the autumn of 2017 together with the H2Station® and combined forklift fueling solution. The delivery truck dispenser will be in place before the first hydrogen-fueled ASKO trucks from Scania are expected to be deployed during the autumn of 2018.
Nel also announced a Letter of Intent (LoI) to establish a joint-venture (JV) with a leading global solar company. The JV will build and operate the first solar-driven hydrogen production plant in the US. This project is the first step towards large-scale commercial renewable hydrogen production to meet the expected demand for renewable hydrogen in California and the US.
The agreement is expected to be finalised before the end of 2016 and the JV aims to begin production and delivery of renewable hydrogen during the second half of 2017. The parties are already exploring additional sites in California for renewable hydrogen production at a larger scale.
Nel is exposed to risk and uncertainty factors, which may affect some or all of the company's activities. Nel has financial risk, market risk as well as operational risk and risk related to the current and future products. There are no significant changes in the risks and uncertainty factors compared to the descriptions in the Annual Report for 2015.
In addition to the activities related to hydrogen, Nel continues to evaluate opportunities for its former healthcare business, including, but not limited to, possible mergers, acquisitions and strategic partnerships.
Nel is at the forefront of the hydrogen industry as a pure play company with market leading technology, a strong management team, a solid balance sheet and is positioned to play a leading role in a fast moving industry.
The company has the following upcoming news flow and outlook for its segments:
• Ramp-up of CAR-200 production throughout Q4'16 and into 2017
Oslo, 15 November 2016 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 | Kristin Hellebust |
| Board member | Board member | Board member |
| (Sign) | (Sign) | (Sign) |
| Mogens Filtenborg | Jon André Løkke |
Board member (Sign) CEO (Sign)
| PROFIT & LOSS | 2016 | 2015 | 2016 | 2015 | 2015 |
|---|---|---|---|---|---|
| (condensed figures in NOK thousands) | Q3 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 |
| Operating Income | |||||
| Sales income | 22 899 | 26 748 | 56 494 | 60 318 | 88 539 |
| Other operating income | 1 471 | 4 057 | 7 355 | 4 045 | 11 386 |
| Total operating revenue | 24 371 | 30 805 | 63 850 | 64 364 | 99 925 |
| Operating expenses | |||||
| Cost of goods sold | 15 186 | 12 690 | 30 985 | 26 656 | 42 116 |
| Total cost of goods sold | 15 186 | 12 690 | 30 985 | 26 656 | 42 116 |
| Operating costs | |||||
| Wages and social costs | 11 265 | 8 349 | 37 175 | 17 312 | 29 891 |
| Depreciation physical fixed assets | 874 | 127 | 2 345 | 415 | 2 818 |
| Depreciation intangible assets | 1 723 | 4 057 | 5 185 | 10 957 | 12 694 |
| Write-down physical fixed assets | 0 | 0 | 52 | ||
| Other operating costs | 8 075 | 7 441 | 27 461 | 21 899 | 30 613 |
| Total other operating costs | 21 936 | 19 973 | 72 166 | 50 583 | 76 068 |
| Total operating costs | 37 122 | 32 664 | 103 151 | 77 238 | 118 184 |
| Operating profit (loss) | -12 752 | -1 859 | -39 302 | -12 875 | -18 259 |
| Financial income | 720 | 700 | 2 501 | 2 274 | 5 185 |
| Financial expenses | 389 | 358 | 1 100 | 1 059 | 1 420 |
| Share of profit and loss associate and joint venture | 3 | -608 | -13 286 | ||
| Net financial income/expense | 334 | 342 | 793 | 1 215 | -9 521 |
| Profit (loss) before taxes | -12 418 | -1 517 | -38 508 | -11 660 | -27 780 |
| Tax costs | -388 | -796 | -1 168 | -2 659 | -6 049 |
| NET PROFIT (LOSS) | -12 030 | -720 | -37 341 | -9 000 | -21 731 |
| Items that may subsequently be reclassified to profit or loss | |||||
| Currency translation differences | -12 495 | 3 919 | -20 986 | 3 919 | 20 220 |
| Other comprehensive income | -12 495 | 3 919 | -20 986 | 3 919 | 20 220 |
| TOTAL COMPREHENSIVE INCOME | -24 524 | 3 198 | -58 327 | -5 081 | -1 511 |
| BALANCE SHEET | Note | 2016 | 2015 | 2015 |
|---|---|---|---|---|
| (condensed figures in NOK thousands) | Q3 | Q3 | Year end | |
| ASSETS | ||||
| Intangible assets | ||||
| Technology | 54 503 | 47 153 | 46 645 | |
| Customer relationship | 28 722 | 32 439 | 31 569 | |
| Goodwill | 314 709 | 324 504 | 332 958 | |
| Total intangible assets | 397 933 | 404 095 | 411 172 | |
| Land, buildings and real estate | ||||
| Land, buildings and real estate | 43 263 | 15 575 | 15 829 | |
| Total land, buildings and real estate | 43 263 | 15 575 | 15 829 | |
| Other fixed assets | ||||
| Fixtures and fittings, tools, etc. | 977 | 986 | 700 | |
| Total other fixed assets | 977 | 986 | 700 | |
| Financial fixed assets | ||||
| Financial fixed assets | 6 451 | 8 155 | 7 297 | |
| Total financial fixed assets | 6 451 | 8 155 | 7 297 | |
| Total fixed assets | 448 623 | 428 810 | 434 998 | |
| Current assets | ||||
| Inventories | 31 319 | 13 214 | 15 023 | |
| Trade receivables | 39 589 | 30 593 | 40 361 | |
| Other receivables | 16 547 | 14 531 | 10 717 | |
| Financial current assets | 1 507 | 2 068 | 1 507 | |
| Cash and cash equivalents | 223 638 | 224 858 | 313 042 | |
| Total current assets | 312 601 | 285 264 | 380 650 | |
| TOTAL ASSETS | 761 224 | 714 074 | 815 649 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 136 736 | 130 120 | 136 120 | |
| Share premium/Other paid equity | 609 413 | 503 857 | 602 910 | |
| Retained earnings | -66 347 | -12 478 | -8 022 | |
| Total equity | 679 801 | 621 499 | 731 008 | |
| Provisions | ||||
| Deferred tax liability | 19 294 | 23 623 | 21 027 | |
| Total provisions | 19 294 | 23 623 | 21 027 | |
| Other long term liabilities | ||||
| Other long term liabilities | 15 381 | 18 960 | 14 641 | |
| Total other long term liabilities | 15 381 | 18 960 | 14 641 | |
| Liabilities Accounts payable |
6 039 | 9 682 | 16 760 | |
| Tax payable | 365 | 1 347 | 375 | |
| Social security, VAT etc. payable | 1 166 | 2 215 | 3 185 | |
| Dividends payable | 0 | 0 | 0 | |
| Other current liabilities | 39 177 | 36 748 | 28 652 | |
| Total current liabilities | 46 747 | 49 992 | 48 972 | |
| TOTAL EQUITY AND LIABILITIES | 761 224 | 714 074 | 815 649 |
| Statement of changes in Equity and Number of Shares: | Share | Other | Curr. conv. | Other | Total | |
|---|---|---|---|---|---|---|
| (figures in NOK/numbers) | Share capital |
premium | reserves | effects | equity | equity |
| As at 1st January 2014 | 1 632 | 45 016 | -310 | -37 662 | 8 675 | |
| Allocation of comprehensive loss | -37 972 | 310 | 37 662 | 0 | ||
| Shares owned by company | -2 085 | -2 085 | ||||
| Transaction cost | -5 342 | 0 | -5 341 | |||
| Increase of capital 15.4.14 | 20 000 | 30 000 | 50 000 | |||
| Increase of capital 20.10.14 | 35 385 | 79 615 | 115 000 | |||
| Increase of capital 13.11.14 | 10 769 | 24 231 | 35 000 | |||
| Consideration | 1 200 | 1 200 | ||||
| Comprehensive income 1.1.-31.12.2014 | -6 511 | -6 511 | ||||
| As at 31th December 2014 | 67 786 | 135 548 | 0 | -7 396 | 195 938 | |
| 0 | ||||||
| Transaction cost | -3 220 | -3 220 | ||||
| Increase of capital 12.01.mandag | 10 000 | 55 000 | 65 000 | |||
| Increase of capital 02.02.mandag | 2 000 | 11 000 | 13 000 | |||
| Comprehensive income 1.1.-31.3.2015 | -639 | -639 | ||||
| As at 31st March 2015 | 79 786 | 198 328 | 0 | -8 035 | 270 078 | |
| Increase of capital 12.06.fredag | 10 260 | 58 997 | 69 258 | |||
| Increase of capital 26.06.fredag | 29 630 | 170 370 | 200 000 | |||
| Transaction costs rel. To Increase of capital Q2 | -4 321 | -4 321 | ||||
| Comprehensive income Q2 2015 | -7 641 | -7 641 | ||||
| As at 30th June 2015 | 119 676 | 423 374 | 0 | -15 676 | 527 374 | |
| Increase of capital 14.7.2015 | 4 444 | 25 556 | 30 000 | |||
| Increase of capital 19.8.2015 | 6 000 | 61 500 | 67 500 | |||
| Transaction costs rel. To Increase of capital Q3 | -6 573 | -6 573 | ||||
| Net profit Q3 2015 | -720 | -720 | ||||
| Currency translation differences Q3 2015 | 3 918 | 3 918 | ||||
| As at 30th September 2015 | 130 120 | 503 857 | 0 | 3 918 | -16 396 | 621 499 |
| Increase of capital 17 December 2015 | 6 000 | 105 000 | 111 000 | |||
| Transaction costs rel. To Increase of capital Q4 | -4 457 | -4 457 | ||||
| Shares owned by company | -2 085 | 2 085 | 0 | |||
| Consideration | 1 200 | -1 200 | 0 | |||
| Gain sale shares owned by company | -605 | -605 | ||||
| Net profit Q4 2015 | -12 730 | -12 730 | ||||
| Currency translation differences Q4 2015 | 16 301 | 16 301 | ||||
| As at 31st December 2015 | 136 120 | 601 710 | 1 200 | 20 220 | -28 241 | 731 008 |
| Transaction costs rel. Increase in capital Q4 | -500 | -500 | ||||
| Net profit Q1 2016 | -9 746 | -9 746 | ||||
| Currency translation differences Q1 2016 | -6 167 | -6 167 | ||||
| As at 31st March 2016 | 136 120 | 601 210 | 1 200 | 14 052 | -37 987 | 714 595 |
| Increase of capital 16.6.16 | 616 | 7 003 | 7 619 | |||
| Net profit Q2 2016 | -15 565 | -15 565 | ||||
| Currency translation differences Q2 2016 | -2 324 | -2 324 | ||||
| As at 30 June 2016 | 136 736 | 608 213 | 1 200 | 11 728 | -53 552 | 704 325 |
| Net profit Q3 2016 | -12 030 | -12 030 | ||||
| Currency translation differences Q3 2016 | -12 495 | -12 495 | ||||
| As at 30 September 2016 | 136 736 | 608 213 | 1 200 | -766 | -65 582 | 679 801 |
| CASH FLOW STATEMENT | Note | 2016 | 2015 | 2016 | 2015 | 2015 |
|---|---|---|---|---|---|---|
| (condensed figures in NOK thousands) | Q3 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | |
| Cash flow from operating activities | ||||||
| Pre-tax profit (loss) | -12 418 | -1 517 | -38 508 | -11 660 | -27 780 | |
| Interest costs, reversed | -487 | -1 835 | -503 | |||
| Interests income, reversed | 145 | 488 | -2 303 | |||
| Ordinary depreciation | 2 597 | 4 184 | 7 530 | 11 372 | 15 512 | |
| Impairment of fixed assets | 0 | 0 | 0 | 52 | ||
| Change in provisions | 361 | 1 986 | -2 969 | 611 | -1 168 | |
| Change in inventories | -7 323 | 4 199 | -16 297 | 417 | -1 392 | |
| Change in trade receivables | -15 833 | -11 586 | 772 | -11 204 | -20 972 | |
| Change in trade payables | 1 242 | -13 053 | -10 721 | -1 530 | 5 547 | |
| Change in other short-term receivables | ||||||
| and other short-term liabilities | 21 185 | 4 736 | 2 676 | -8 982 | -4 803 | |
| Net cash flow from operating activities | -10 532 | -11 051 | -58 864 | -20 975 | -37 809 | |
| Cash flow from investment activities | ||||||
| Proceeds from sale of fixed assets | 0 | 0 | 0 | 0 | ||
| Acquisitions of fixed assets | -28 809 | -107 | -30 604 | -465 | -581 | |
| Acquisition of intangible assets | -2 958 | 0 | -9 601 | 0 | ||
| Acquisitions of subsidiaries / financial fixed assets | 0 | -7 998 | -200 | -83 182 | -83 182 | |
| Proceeds from sale of subsidiaries | 0 | 15 | ||||
| Net cash flow from investing activities | -31 767 | -8 105 | -40 389 | -83 647 | -83 763 | |
| Cash flow from financing activities | ||||||
| Interest paid | 487 | 1 835 | 472 | |||
| Interest received | -145 | -488 | 2 303 | |||
| Gross cash flow from share issues | 90 927 | 7 619 | 230 643 | 355 758 | ||
| Transaction costs connected to share issues | -500 | -18 571 | ||||
| Proceeds from new loan | 356 | 1118 | 2 311 | 1118 | 1 118 | |
| Payment of long term liabilities | -619 | -260 | -928 | -779 | -4 962 | |
| Net cash flow from financing activities | 79 | 91 785 | 9 849 | 230 983 | 336 118 | |
| Net change in cash and cash equivalents | -42 220 | 72 630 | -89 404 | 126 360 | 214 546 | |
| Cash and cash equivalents | 223 638 | 224 858 | 223 638 | 224 858 | 313 043 |
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 2015 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 adopted by the EU.
As per the date of this report the company has sufficient working capital for its planned business activities over the next twelve-month period.
The preparation of condensed interim consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses
In the process of applying the Group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the condensed interim financial statements:
In 2016 the group has started production of the 0-series of the CAR-200 fueling station. Based on the nature of the agreements with the customers, NEL has assessed that these meets the criteria to fall within the scope of IAS 11 – Construction contracts. This revenue is thus recognised in proportion to the stage of completion of each contract activity.
The estimates and underlying assumptions are reviewed on an ongoing basis, considering the current and expected future market conditions. Changes in accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
NEL operates within two business segments, Hydrogen fueling stations and Hydrogen Electrolysis solutions. Through its subsidiary NEL Hydrogen A/S (formerly H2 Logic A/S) based in Herning, Denmark, the group offers H2Stations® for fast fueling of fuel cell electric vehicles as well as services in relation to the supply of these stations. Through its subsidiary NEL Hydrogen AS, based in Notodden, Norway, the group offers hydrogen plants based on water electrolysis technology for use in various industries. NEL operates within two business segments, Hydrogen fueling stations and Hydrogen Electrolysis solutions. Through its subsidiary NEL Hydrogen A/S (formerly H2 Logic A/S) based in Herning, Denmark, the group offers H2Stations® for fast fueling of fuel cell electric vehicles as well as services in relation to the supply of these stations. Through its subsidiary NEL Hydrogen AS, based in Notodden, Norway, the group offers hydrogen plants based on water electrolysis technology for use in various industries.
| Hydrogen Fueling stations | Hydrogen Electrolysis solutions | Other/ Elimination | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016 | 2016 | 2015 | 2016 | 2016 | 2015 | 2016 | 2016 | 2015 | 2016 | 2016 | 2015 | |
| (figures in NOK million) | Q3 | Q1-Q3 | Full year | Q3 | Q1-Q3 | Full year | Q3 | Q1-Q3 | Full year | Q3 | Q1-Q3 | Full year |
| Total operating revenue | 15,3 | 43,7 | 41,0 | 9,0 | 20,9 | 58,9 | 0,0 | -0,7 | 0,0 | 24,4 | 63,8 | 99,9 |
| Total operating cost | 19,6 | 53,1 | 35,2 | 11,3 | 31,3 | 58,3 | 6,2 | 18,7 | 24,7 | 37,1 | 103,2 | 118,2 |
| Operating profit | -4,3 | -9,4 | 5,9 | -2,3 | -10,5 | 0,6 | -6,2 | -19,4 | -24,7 | -12,8 | -39,3 | -18,2 |
| Net Financial income (expence) | 0,0 | -0,6 | -11,3 | -0,2 | -0,5 | 0,2 | 0,6 | 1,9 | 1,6 | 0,3 | 0,8 | -9,5 |
| Pre- tax profit (loss) | -4,3 | -10,0 | -5,4 | -2,5 | -11,0 | 0,8 | -5,6 | -17,5 | -23,1 | -12,4 | -38,5 | -27,7 |
| Total Assets | 412,4 | 412,4 | 350,8 | 148,6 | 148,6 | 139,3 | 200,2 | 200,2 | 325,5 | 761,2 | 761,2 | 815,6 |
| Total Liabilities | 42,5 | 42,5 | 39,2 | 24,6 | 24,6 | 25,2 | 14,4 | 14,4 | 20,2 | 81,4 | 81,4 | 84,6 |
*NEL Hydrogen A/S (formerly H2 Logic A/S) was acquired by NEL ASA at the end of Q2 2015. Measured from the transaction date total profit related to NEL Hydrogen A/S included in the consolidated statement of comprehensive income in the first and second quarters 2015 amounts to zero.
The table below shows the movements in goodwill during Q3 2016
| Amount (NOKm) | ||
|---|---|---|
| 2016 | 2015 | |
| Q3 | Full year | |
| Goodwill as of 1 January | 333,0 | 60,8 |
| Acquisition of H2 Logic 2015 | 256,5 | |
| Other acquisitions in 2015 | 0,6 | |
| Currency translation differences | (18,3) | 15,1 |
| Goodwill as of 30 September/31 December | 314,7 | 333,0 |
Nel ASA has paid NOK 0.6 million in management fees to Ferncliff in the period.
Title: Nel ASA
Published date: 16.11.2016
[email protected] +47 23 24 89 50
Sjølyst plass 2, 0278 Oslo, Norway
The publication can be downloaded on nel-hydrogen.com
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