Nel ASA: Losses, a Flood of Orders, and the CEO’s Departure
Norwegian electrolyzer manufacturer Nel ASA’s latest quarterly results reflect both positives and negatives. Revenue from customer contracts plummeted to NOK 153 million in the second quarter of 2026, a 12% decline compared to the same period last year. At the same time, order intake skyrocketed to NOK 230 million, a 224% increase over the previous year. The PEM segment accounted for 96% of these new orders. As a result, the order backlog grew to NOK 1.213 billion. However, operating performance remains weak. EBITDA deteriorated to minus NOK 155 million.
The reason for the high volume of orders is likely the launch of the pressurized Alkaline series in May 2026. This gives the company a genuine competitive advantage, as the cost of capital is expected to be 40–60% lower than for standard market solutions. Production capacity is set to rise to 500 megawatts by the end of 2026. It is expected to double again next year. The EU is providing support of up to EUR 135 million from the Innovation Fund. This will allow the company to gradually work through the flood of orders. Management believes it is well-prepared for large-scale projects.
The news that CEO Håkon Volldal is stepping down and moving to the Norwegian packaging manufacturer Elopak came as a shock to shareholders. He will remain in office until the end of the year. The supervisory board emphasizes that the strategic direction remains unchanged. Cash and cash equivalents totaled NOK 1.328 billion, representing a decline of approximately NOK 600 million compared to the previous year. This financial cushion gives the company time to implement its strategy. Analysts remain skeptical, with the average price target from 13 companies being around NOK 2.11. The share is currently trading at approximately NOK 2.14.
A.H.T. Syngas: Undergoing a Strategic Realignment
A.H.T. Syngas is currently undergoing a strategic transformation and realigning its business. The company aims to move away from the purely project-based business of selling plants. In the future, it plans to operate the plants that process wood waste and similar materials itself. The plants will remain the company’s property, and customers will purchase gas, electricity, or heat. This transformation secures recurring revenue for A.H.T. and promises a significant increase in profitability. While the sale of a plant generates a margin of about 10%, the operating model is expected to raise this to up to 18%.
The market for synthesis gas is growing rapidly and is expected to double to USD 33.4 billion by 2035. Management plans to expand, particularly in Poland. The new, exclusive partnership with INNOTEC opens the door to 17 projects there and promises orders in the double-digit millions as early as this year. The company has laid the financial foundation for these steps through a fully placed convertible bond worth EUR 2.0 million. The management team holds a significant stake in the company’s success, with approximately 40% of the shares, and is therefore committed to consistently driving scaling forward.
In addition, the company has established the technical foundation for this hydrogen production. The completed BiDroGen project has paved the way for more cost-effective hydrogen production. The newly developed shift stage for processing wood gas was successfully validated in container-based operations. Hydrogen production costs can be reduced to between EUR 4.40 and EUR 7.98 per kilogram upon scaling up, which is below the cost of conventional electrolysis-based hydrogen. Going forward, management is banking on patented oxygen gasification, which is expected to simplify the process further and reduce costs by eliminating the nitrogen component. The share is currently trading at around EUR 1.77.
BP: With a New Focus
BP intends to sell its North Sea operations. This information was announced on July 31. A total of five production centers with a daily output of 117,000 barrels of oil equivalent are to be sold, corresponding to approximately 5% of BP’s global production. CEO Meg O’Neill cites the need to redirect capital to more lucrative areas as the reason for the move. She stated that the business, with its approximately 1,100 employees, would be better suited to a different owner. According to media reports, potential buyers include companies such as Ithaca Energy or the Shell-Equinor joint venture Adura. The proceeds could amount to 2 billion pounds and are part of a broader divestment program.
In parallel with the divestitures, the CEO, who has been in office since April, is pushing ahead with a fundamental streamlining of the company. As of July 1, the group is organized into just two business segments: Upstream and Downstream. According to a report, approximately 700 non-frontline positions are also set to be eliminated to streamline the organization. For the second quarter, the company expects significant margin improvements despite declining production. Revenues in the oil segment could boost operating income by up to USD 2.1 billion, while the refining business is benefiting from robust margin growth.
Net debt is expected to have fallen to USD 22–23 billion by the end of the quarter, a significant reduction from the USD 25.3 billion recorded at the end of March. This reduction was achieved despite the repayment of USD 2.9 billion in hybrid bonds. While the company is scaling back its renewable energy division, it entered into a partnership with Iberdrola in July to produce green hydrogen. The partners are aiming for a capacity of up to 600,000 metric tons per year. Most analysts view the stock positively. The official quarterly results are expected on August 4. The stock is currently trading at around EUR 6.448.
The industrialization of hydrogen is gaining momentum. While BP is refocusing on its core business through its exit from the North Sea and the wind-down of its renewable energy division, the shift is creating opportunities for more specialized technology providers. Nel ASA continues to face operating losses but is benefiting from a surge in orders for its new Alkaline series, even as the company navigates a CEO transition. Meanwhile, A.H.T. Syngas is pursuing a higher-margin owner-operator business model while expanding into Poland with its cost-effective wood gasification technology.
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