Nel drops to bottom of STOXX after client backs out of order

Nel ASA

13/12/2023 09:04

** Shares in Nel  NEL.OL  drop around 10% after the
Norwegian hydrogen company said its client cancelled an order,
which an analyst says reflects poor market conditions for the
industry
    ** Nel said in a statement that Dutch energy company HyCC
had cancelled an order as it postponed its H2eron project to
being realised in 2028 
    ** "There has been little order intake in recent quarters,
and this cancellation suggests that this will not change any
time soon," says Kepler Cheuvreux analyst Andreas Nibe Nygard
    ** He adds that the cancellation shows "how poor the
economics for green hydrogen are at the present time"
    ** The cancellation will have a negative backlog impact of
about EUR 12 million ($12.94 million), Nel said
    ** Shares fall to the bottom of pan-European 600 index
 .STOXX  and are on track for their worst day since September 

($1 = 0.9273 euros)

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