Nel drops after Hy Stor Energy deal cancellation

Nel ASA

01/10/2024 08:25

** Shares in Nel  NEL.OL  fall more than 6% after the
Norwegian hydrogen solutions provider announced on Monday Hy
Stor Energy cancelled a major capacity reservation agreement for
the Mississippi Clean Hydrogen Hub
    ** "The award did mark Nel's entry into the GW-scale
contract game and we expect a negative reaction given the
prospect of a conversion into a very large purchase order is
gone," says RBC in a note 
    ** The broker notes there were no details as to why Hy Stor
decided to terminate the agreement and believes the decision
does not relate to any company-specific issues on Nel's side
    ** It adds that the implications of the termination extend
beyond the company, potentially affecting the near-term outlook
for manufacturers with strong U.S. exposure
    ** Including today's fall, the stock has dropped by 27% YTD
    

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))