Nel ASA

Earnings Release • Feb 15, 2017

Nel ASA: Fourth quarter 2016 results

Nel ASA: Fourth quarter 2016 results

(Oslo, 15 February 2017) Nel ASA (Nel) reported revenues in the fourth quarter

2016 of NOK 50.6 million, compared to NOK 35.6 million in the same quarter in

2015. The company is on-track and well-positioned for the Californian market,

both related to fueling stations and renewable hydrogen production.

"The fourth quarter was a strong period for Nel, with record high revenue

growth, cash preservation and high business development activity in different

key markets. We see increased interest in the field of hydrogen from multiple

markets far outside our home base, and believe we are well positioned to take

advantage of these opportunities", says Jon Andrè Løkke, Chief Executive Officer

of Nel.

In the fourth quarter of 2016, Nel reported revenues of NOK 50.6 million, up

from NOK 35.5 million in the same quarter in 2015, representing the strongest

quarterly performance in 2016. The operating earnings were impacted by the full

2016 non-cash costs related to the company ?s stock option- and share incentive

program of NOK 10.2 million, resulting in a negative EBIT of NOK 16.0 million (

-5.4). The cash balanced increased NOK 1.8 million to NOK 225.5 million during

the quarter.

"The underlying project-development pipeline is strong, and the company

continues to experience a high activity level for its prospects and ongoing

tender processes. We are well-positioned for the Californian market, both

related to fueling stations and renewable hydrogen production", says Løkke.

The Energy Commission in California is expected to announce the Grant Funding

Opportunity (GFO) in the first quarter of 2017. The full GFO award is likely to

cover around 20 stations, to be installed and developed in 2017 and 2018.

"Nel has both a direct and indirect market penetration strategy for California,

were our US subsidiary Everfuel has applied directly for funding. In addition,

we are offering our H2Station technology to other GFO applicants which have

included our equipment into their proposals. California also represents an

opportunity within hydrogen production, as 33 percent of the hydrogen must be

renewable, compared with today's situation with no TRUE renewable hydrogen

available in this market", says Løkke.

Within renewable hydrogen production, Nel and SunPower Corp. have entered into a

framework agreement to develop solar based renewable hydrogen facilities in

California, US. The parties are exploring an initial facility in Davis,

California, but are also looking at other locations. The target is to market low

cost renewable hydrogen from the site at a price of around 4 USD/kg.

The presentation will be broadcast live at www.nelhydrogen.com/webcast and can

also be viewed at http://webtv.hegnar.no/presentation.php?webcastId=45446527

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

www.newsweb.no and www.nelhydrogen.com.

ENDS

Further information:

Jon André Løkke, CEO, +47 9074 4949

Bent Skisaker, CFO, +47 4682 1693

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

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.