Nel ASA: Plunge in Stock Price

Last Updated: 13. Dezember 2023By

Shock in the morning hours for numerous investors in the hydrogen industry: Nel Asa has crashed by 10% to 11%, so I would like to phrase it. I take up this example for you because it stands as an example for what is currently happening in this former hype sector. A warning.

Nel Asa: A negative order shock! On Tuesday, Nel Asa spoke of an order cancellation. This is an alarm signal. Specifically, HyCC has withdrawn an order with a volume of 12 million euros. Nel Asa was to supply electrolyzers, which are essential for the production of green hydrogen.

This order reduction is more than just a loss of sales. HyCC in turn wants to postpone its project plans to 2028 – this shows that the switch to the green hydrogen economy (in this case, not the „Green“ party, but the hydrogen designation) is stalling everywhere. Numerous Western countries are currently trying to at least provide blue hydrogen. This, in turn, is not produced using alternative energy sources, but with gas.

For months, Nel Asa and its competitors such as Plug Power have not reported any new orders. That too has been an alarm signal. The loss of 12 million euros therefore also hits the company and its shareholders hard in this individual case. For 2023, the annual turnover is expected to be around 140 million euros, for 2024 perhaps around 170 to 190 million euros. In addition, HyCC was certainly a showcase project.

Almost the free fall for Nel Asa Thus, not only the individual order has disappeared, but the stock market has also been confirmed. It has already sent Nel Asa into a downward trend for some time. The share has long become a penny stock, running below 1 euro. This makes it easier for speculators to manipulate the prices, as the capital investment remains low.

Nel Asa is now worth just over 1 billion euros on the stock exchanges. „Worth“ is, however, a big word: The losses will certainly be more than 70 million euros and may even increase, depending on how the order was calculated for which fiscal year.

The stock exchanges have already started a funeral march for Nel Asa some time ago and today – an example of the species of pure players, i.e. companies that only make money with hydrogen and co. The industry is obviously facing difficulties in implementing the energy trend. I warn against the small companies!

Nel Asa: The crash! WKN: A0B733 – ISIN: NO0010081235