Norwegian hydrogen company Nel ASA has reported strong growth in Q3 2023, with revenues reaching NOK 405 million, a 121% increase from the same period last year. The firm's EBITDA improved to NOK -109 million, with the electrolyser division's EBITDA margin rising to -10%. The order intake for the quarter was NOK 352 million, and the order backlog swelled by 36% to NOK 2,854 million.
The company experienced growth across all segments, including Fueling, PEM electrolysers, and alkaline electrolysers. Nel Hydrogen Electrolyser reported a 116% revenue increase. Notably, the firm secured two significant electrolyser contracts and announced plans for a Gigafactory in Plymouth Charter Township, Michigan, US. The proposed factory will boast over 4 GW of production capacity.
Nel's new strategic direction has started to bear fruit as it surpassed NOK 1 billion in year-to-date revenues. It also secured over USD >50 million in state funding for the factory with potential for an additional USD 75 million. The company is shifting focus towards high-capacity systems for heavy-duty transportation and maintains a financially sound position with an average project size of about 360 MW, indicating Nel's leadership in large-scale operations.
InvestingPro data shows that Nel's market cap is at 1029.48M USD and its revenue growth has accelerated to 65.23% LTM2023.Q2. Despite not being profitable over the last twelve months, it holds more cash than debt on its balance sheet, as suggested by one of the InvestingPro Tips. This strong financial position is further evidenced by the fact that its liquid assets exceed short-term obligations.
On another note, Norfolk Southern Corporation (NYSE:NSC), a leading rail shipper of auto products and metals in North America, reported Q3 2023 results with income from railway operations at $756 million and diluted earnings per share after a $163 million incident charge from a train derailment in East Palestine, Ohio.
Adjusted figures showed income at $919 million and diluted earnings per share declining by 28% and 35% respectively from Q3 2022. Railway operating revenues were $3.0 billion for Q3 2023, marking an 11% decrease from Q3 2022. The income from railway operations was down by 41% compared to $1.3 billion in Q3 2022 due to the incident.
CEO Alan H. Shaw emphasized the corporation's investment in people and assets for an innovative strategy aiming at consistent growth. Norfolk Southern operates the most extensive intermodal network in the eastern U.S., connecting to every major container port on the Atlantic coast, Gulf of Mexico, and Great Lakes.
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