Q4 results, potential spin-off boost Nel shares

Nel ASA

28/02/2024 09:24

** Shares in Nel  NEL.OL  rise 5%, paring earlier gains of
as much as 20%, after the Norwegian hydrogen services provider
posted better-than-expected Q4 figures and said it considers a
potential spin-off, separate listing of its fueling division
    ** "P&L beats expectations," Jefferies says, adding that the
 spin-off and a narrower loss in Q4, should be supportive to the
shares
    ** Analysts see the separation as positive for Nel, but some
warn the spun-off business could face lasting challenges due to
increased competition, market struggles
    ** "I think it will be a little difficult to separate out,
as this is a struggling business and it is difficult to see a
particularly high value here," Kepler Cheuvreux analyst Andreas
Nybe Nygaard says
    ** SEB analyst Anders Rosenlund questions the viability of
Nel's fuelling division as a listed entity, suggesting it should
be shut down
    ** The company said in a statement the spun-off shares would
be distributed to all existing shareholders as a
dividend-in-kind
    ** The shares are on track for their best day since April
2023 
    ** Nel stock has been underperforming over the past 12
months and lost about 70% of its value since February 2023 highs

 (Reporting by Jesus Calero and Agata Rybska)
 ((Jesus.calero@thomsonreuters.com))