Nel (NEL) Q4 2016 earnings summary

Executive summary

• Q4 revenue reached NOK 50.6 million, up from NOK 24.4 million in Q3; FY 2016 revenue was NOK 114.5 million.

• Commercial progress included hydrogen fueling and electrolyser contracts, the Kjørbo station opening, and plans for renewable hydrogen production in California.

• Outlook emphasized growing hydrogen demand, increased H2Station® production in 2017, and development of integrated projects and renewable hydrogen solutions.

Financial highlights

• FY 2016 operating revenue was NOK 114.5 million vs. NOK 118.2 million in 2015; Q4 revenue was NOK 50.6 million vs. NOK 35.6 million in Q4 2015.

• FY EBITDA was NOK -44.9 million and EBIT NOK -55.3 million; excluding NOK 10.3 million of non-cash share incentive costs, EBITDA was NOK -34.6 million and EBIT NOK -45.1 million.

• FY net loss was NOK 55.8 million, compared with NOK 12.7 million in 2015; pre-tax loss was NOK 62.6 million vs. NOK 16.1 million.

• Q4 cash balance was NOK 225.5 million, up from NOK 223.6 million at Q3 end and down from NOK 313.0 million at Q4 2015 end.

Outlook and guidance

• H2Station® production ramp-up planned for 2017; Herning facility development was on budget and schedule, with nameplate capacity of ~300 stations annually.

• Rotolyser testing was planned for Q2 2017, with longer-duration tests in fall 2017 subject to design verification; target commercial launch was 2018 at 10 Nm³/h.

• First SunPower-linked solar hydrogen plant targeted for H2 2017, with annual production capacity up to 120 metric tons and target sales price of $4/kg.

• Iceland delivery of the first fueling station and electrolyser targeted toward end-2017; the network could expand alongside fuel-cell vehicle deployment.