Nel ASA Chairman Buys In as EU Cash Fuels Bet on Cheaper Electrolysers

Nel ASA reports mixed Q1 results with a 73% drop in orders, but a sturdy balance sheet, a major alkaline electrolysis launch on May 6, and a chairman share purchase boost investor sentiment.

Nel ASA enters a pivotal week with a mixed bag of first-quarter results that reveal both progress and pain. The Norwegian hydrogen company’s order intake has cratered, yet its balance sheet remains sturdy and a major technology launch looms on 6 May.

The numbers for the three months to March tell a tale of two trends. Revenue slipped 5% year-on-year to 148 million Norwegian kroner, while the EBITDA loss narrowed by 15 million kroner to minus 100 million kroner — still deep in the red, but heading in the right direction. The real sting came in the order book: new orders collapsed 73% to just 85 million kroner, dragging the total backlog down 24% from a year earlier to 1.113 billion kroner.

The company’s two divisions performed in opposite directions. The alkaline segment managed a 6% revenue increase and slashed its EBITDA loss by 35 million kroner. The PEM segment, by contrast, saw sales fall 14%, with activity concentrated almost entirely on small-scale kilowatt-class electrolysers.

Chief executive Håkon Volldal acknowledged the first quarter was “rather quiet” on the order front, but pointed to a contract already signed in the current quarter and expectations of more before mid-year.

A vote of confidence from the top

Just hours after the numbers landed, board chairman Arvid Moss stepped in with a personal show of faith. Moss bought 100,000 shares in his first publicly disclosed purchase, a move that signals belief in the company’s direction despite the weak intake.

The chairman’s bet comes as Nel prepares to launch a pressurised alkaline electrolysis platform on 6 May — a system Volldal calls a “quantum leap” for the company. The technology promises to cut capital costs by 40% to 60% and operating expenses by 10% to 20%. The European Union is backing the project with up to 135 million euros from its innovation fund, with series deliveries pencilled in for 2027.

Management is already in active discussions with multiple customers about supply agreements. The launch represents the first real test of Nel’s strategic pivot away from conventional atmospheric-pressure technology.

Fresh capital discipline

Alongside the technology shift, Nel has overhauled its executive compensation. The old share option programme, which carried no performance conditions, has been replaced with a performance share unit model tied to clear criteria and a long-term lock-up period. The chief executive will now receive a maximum of 50% of his base salary in equity units, while other senior managers are capped at 30%.

The company’s cash position stood at 1.443 billion kroner at the end of the quarter, providing ample runway into next year. Nel also expects an EU grant of 11 million euros in the second quarter.

Market momentum

Investors have taken the mixed picture in their stride. Nel’s shares closed on Friday at 0.22 euros, up roughly 6.5% on the day and 14.5% since the start of the year — comfortably above the 52-week low of 0.18 euros. The stock has also broken above its long-term moving average, a technical signal that has caught the attention of traders.

Volldal pointed to growing interest in decentralised energy supply and defence-related applications, arguing that hydrogen as a local energy storage solution could gain traction in these emerging markets.

The next hard data point arrives on 15 July with second-quarter results. Between now and then, all eyes will be on whether the new electrolyser platform can convert conversations into contracts — and arrest the slide in order intake.