On Thursday morning, things were still looking good for the Nel ASA share: the shares of the Norwegian hydrogen specialist had improved to 1.45 euros, and the temporary fall to 1.28 euros on Monday seemed to be history. But far from it. By the end of trading, the Nel share had lost massively, closing at 1.35 euros. On Friday morning it went down further to 1.30 euros. The share seems to have completely detached itself from the news.
Nel ASA should be able to profit from EU plans
Not only did European companies and the EU Commission present a memorandum of understanding on the hydrogen ramp-up on Thursday, Nel ASA also announced another multi-million euro order on the same day. Nel Hydrogen US, a subsidiary of Nel ASA, is to supply a hydrogen production plant for alkaline electrolysis to a leading Indian company in palm oil refining and production of oleochemicals by 2023. Nel put the value of the contract at around two million euros.
This was only the latest in a whole series of new orders; in April Nel mainly reported new orders for the construction of hydrogen filling stations. But things could soon get really exciting in another core area of Nel ASA ( Daily News Rating ), because in a joint declaration of intent European business and politics now define “how they want to overcome the hurdles in setting up a significant European hydrogen production”, as the Handelsblatt reported on Thursday.
Nel with Plug and Ballard Power in downward spiral
According to the report, the focus of the initiative is on a rapid build-up of electrolyser capacities – exactly the business field in which Nel ASA claims to be a leader. However, it is hard to explain rationally why the shares of the Norwegian company are currently under as much pressure as those of Plug Power (USA) or Ballard Power (Canada).