Nel ASA

Earnings Release • Aug 25, 2016

Nel ASA: Second quarter 2016 results

Nel ASA: Second quarter 2016 results

(Oslo, 25 August 2016) Nel ASA (Nel) reported revenues in the second quarter of

NOK 13.5 million, reflecting the fluctuating nature of Nel's project business,

as well as initiation of certain projects being postponed to the second half of

2016. The underlying project pipeline is strong and Nel has submitted a proposal

for the fourth quarter allocation of the governmental hydrogen program in

California.

"The second quarter was a busy period for Nel. We have introduced the next

generation fueling station, the CAR-200, with orders already being placed by

leading European customers. We also recently announced the new Nel C-range

containerised turn-key electrolyser solution, setting the benchmark for hydrogen

production efficiency and footprint. The establishment of Nel Hydrogen Solutions

business area enhances market opportunities across the group, initiatives are

already yielding results, and Nel is positioned at the forefront of a rapidly

growing hydrogen industry", says Jon Andrè Løkke, Chief Executive Officer of

Nel.

In the second quarter of 2016, Nel reported revenues of NOK 13.5 million (Q2'15:

MNOK 16.0), reflecting the fluctuating nature of the company's project business,

as well as initiation of certain projects being postponed to the second half of

2016. EBITDA ended at NOK -14.0 million (-5.3), impacted by the high activity

level within business development in new markets, investments, and preparation

for production ramp-up. Nel's cash balance at the end of the second quarter was

NOK 265.9 million, up from NOK 152.2 million at the end of the second quarter in

"Nel is a pure play hydrogen 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 underlying project development pipeline is strong

and the company experiences a high activity level in ongoing tender processes,"

says Løkke.

In California, the Energy Commission has doubled the Governmental Grant

Opportunities (GFO) hydrogen program to USD 33 million, with a target to reach

100 hydrogen fueling stations by 2020.

"Nel is taking both a direct and an indirect approach to the important

California market, leveraging on delivering leading hydrogen technology.

California represents an important opportunity for Nel as 33 percent of the

hydrogen must be renewable, today hardly any hydrogen is made from renewables.

We have submitted our California funding proposal and look forward to the

governmental allocation that should take place during the fourth quarter of

2016, " says Jon André Løkke.

The presentation will be broadcasted live at www.nel-hydrogen.com/webcast and

can also be viewed at http://webtv.hegnar.no/presentation.php?webcastId=36902334

The second quarter 2016 report and presentation will be made available through

www.newsweb.no and www.nel-hydrogen.com.

ENDS

For additional information, please contact:

Jon André Løkke, CEO, +47 90 74 49 49

About Nel

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

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. www.nel-hydrogen.com