Hydrogen II – NEL ASA

Now we will present the 3D-graph with the first hydrogen company in it. It is NEL ASA, the Norwegian manufacturer of electrolytic devices and other solutions related to hydrogen.

Here I have to warn again: my portfolio holds some shares NEL ASA, but there is no relationship with this post, as its main purpose is to demonstrate the power of our 3D-graphs. No advice on investments is given whatsoever.

Founded in 1927 NEL ASA is certainly not a startup. Actually it’s a group now, holding very different companies in several countries. The history of NEL ASA is certainly interesting, but here we will focus on finance.

What do we expect from a company with a long history in hydrogen? Probably a sound profit and reasonable gearing. To have a longer period for comparison, the years 2020, 2018 and 2016 were taken and we went back to our well-know RPEA: Revenue, Profit, Equity and (total) Assets. I hope you’re not disappointed. If so, create your own alternative 3D-graph with our free software Anything can be fed into the generator, like cash flow from operations, EBITDA, current liabilities, current assets and so on – it’s up to you! The manual will explain how to deal with several alternatives.

Anyhow, here we will stick to our list of companies, the years 2016-2018-2020 and work with RPEA.

The legend, hovering in front of the graph indicates that revenue is the height of the building (with the roof representing the profit part), the width is the equity and the depth represents total assets.

Picking the numbers from the annual reports, we had to convert the currency (Norske Kroner – NOK) to a more general one. This time it will be EUR again. As usual for the balance the end of year exchange-rates were taken and for revenue and profit we used the mid-year exchange rate as an estimate. The rates were obtained from the ECB this time.

Click here to view the real 3D-graph in your browser

After loading the standardised amounts into our generator, the graph emerged and it was a bit of a surprise (well, not completely, because we could see the losses when filling the input-file). Thick red roofs indicate solid losses. Remember that a normal profit will show a part of the revenue as a green roof – red represents a loss, placing a red roof on top of the revenue, indicating that costs were higher than the revenue.

You may ask why the roof is red for 2020 whilst profit was shown in the annual report. It was, but the profit was actually higher than the revenue. This is because of something reported as “financial income”. Some firms do have financial income, but NEL ASA only has a huge one-off by selling a lot of shares. This amount was subtracted from the profit, making it an operational loss.

Then it seems that revenue and equity are growing rapidly, despite the losses. NEL ASA clearly has some funding (like the 2020 emission) and can live without profit for a while as hydrogen is a promising industry. Then some smart acquisitions were also helping of course. The gearing is really impressive: the equity is almost equal to the total assets, meaning hardly any liabilities are in the balance sheet.

Looking from aside we can clearly see it’s not the perspective – NEL ASA grew rapidly from a financial perspective. Even the revenue went up, although all three years show an (operational) loss.

Click here to view the real 3D-graph in your browser

That was it for the first company to populate the 3D-graph for our hydrogen-series!  Don’t forget to download your free copy of AnRep3D (Charles Warter website) or visit Scientassist.

Short tutorials, explaining different parts of AnRep3D are available at our Youtube-channel

The white-paper and inspirational graphs can also be downloaded (Charles Warter website).

Follow @AnRep3D on Twitter, to be informed about new posts.

About AnRep3D

AnRep3D is the new company, founded after the handover of Scientassist (together with VRBI) to one of my sons. From now I will focus on three-dimensional graphs for the financial markets, showing the main figures from annual reports in comparison. As per 2021 a second product is available: EnRep3D. It is meant to visualise energy. Although the engine is the same, the texts, manual, website and examples (including blogposts) are focused at energy.
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