Close menu




February 14th, 2024 | 07:30 CET

Nel ASA, Klimat X Developments, Nordex - Climate Neutral: The Business Booster

  • Sustainability
  • renewableenergies
  • Energy
Photo credits: pixabay.com

In a world that is increasingly scrutinizing the ecological footprint of business ventures, companies that actively integrate measures to achieve climate neutrality into their business processes are increasingly coming into focus. Such proactive companies can gain a significant competitive advantage in the current environment. It is not only end consumers who are increasingly paying attention to the climate neutrality of companies but also the companies themselves. Being climate-neutral enhances the value of one's brand, providing an additional selling point, and green companies receive bonus points in financing discussions. We take a look at three companies that are trying to make the world a greener place.

time to read: 5 minutes | Author: Armin Schulz
ISIN: NEL ASA NK-_20 | NO0010081235 , KLIMAT X DEVELOPMENTS INC | CA49863L1067 , NORDEX SE O.N. | DE000A0D6554

Table of contents:


    Nel ASA - Once again, light and shadows

    Hydrogen offers a promising solution for storing renewable energy and reducing the negative impact of fossil fuels, as it has a high energy density and is a sustainable energy source that enables the conversion of water and electricity. Electrolysers are needed to produce green hydrogen, and this is where Nel ASA's expertise lies. Nel is also involved in expanding the infrastructure for green hydrogen mobility. However, the Company is highly loss-making, especially when it comes to hydrogen filling stations. Profitability is the Company's main problem because even if it is in a better financial position than Plug Power, investors at least expect to see a break-even scenario.

    The year began on a positive note. Nel ASA signed a contract for 10 megawatts (MW) of alkaline electrolyser equipment worth around EUR 5 million with Samsung C&T Corporation Engineering & Construction Group for a green hydrogen project in South Korea. On February 2, the Company announced that a new contract had been agreed with Nikola and that Nel ASA would receive USD 9 million for the adjustments to the old contract. As Nikola's Phoenix Hydrogen Hub has been acquired by Fortescue, there is now also a relationship with Fortescue. Nel ASA will also receive around USD 11 million for the updated guarantees and changes to the scope of supply.

    The Norwegians could possibly make good use of this money. The Iwatani Corporation of America has filed a lawsuit against Nel ASA in the US for damages of an undisclosed amount, claiming that the hydrogen filling stations supplied by Nel are defective. Nel ASA has rejected these claims in an initial statement and intends to defend itself vigorously against the allegations. This announcement caused the previously good news to fizzle out and led to a new low for the year at NOK 4.665. One share is currently available for NOK 5.07.

    Klimat X Developments - Joint venture for Yucatan project

    In today's world, where protecting our planet and reducing carbon emissions are more crucial than ever, the market for carbon credits has emerged as a key element in the fight against climate change. These credits, developed through targeted projects in terrestrial and marine ecosystems, offer an innovative tool to promote sustainability and environmental protection. Klimat X Developments specializes in the development of these nature and climate protection projects. The Company sets up the projects under contract and has the reforestation and renaturation work financed by its clients, which include a Fortune 100 company.

    Through these advance purchase agreements, the customers secure CO2 credits, Klimat X has financed its operations, the plots are either replanted or reforested and the smallholders who lease their land are also compensated. A win-win situation at all levels. The Company currently has projects in Sierra Leone, Suriname, Yucatan and Guyana, which together cover more than 35,000 hectares. In addition, there is potential for the restoration of 70,000 to 150,000 hectares. Each project is designed for a term of 30 to 50 years and will generate recurring income with rising carbon prices in the coming years.

    After recently advancing the project in Sierra Leone, progress is now also underway in Yucatan. On February 12, the Company announced a joint venture with Imperative Global Projects for the almost 100,000-hectare mangrove project. The mangroves are to be reforested, and upon completion, they have the potential to generate more than 10 million tons of CO2 certificates over 30 years. Anyone interested in learning more about the Company should make a note of February 21. On this day, CEO James Tansey will present the Company at the 10th International Investment Forum. With a current share price of CAD 0.07, the Company has a market capitalization of just CAD 6.1 million, which is considered quite favorable. This is also the conclusion of the Hannam & Partners study, which sees a target price of CAD 0.32 by the end of the year.

    Klimat X Developments will present at the 10th International Investment Forum

    Nordex - Return to profit

    Wind power is an alternative to fossil fuels. Wind energy is regarded as a clean, renewable, and now economically competitive solution. In Germany, the wind turbine manufacturer Nordex is one of the leading companies in this field. Here, the Company managed to increase its order intake in 2023 by a whopping 36%. In addition, the Company successfully participated in auction rounds with more than 1.8 gigawatts (GW) of projects. In 2023, as a whole, the Company recorded an order intake of 7.4 GW, with 86% coming from Europe and 14% from North and South America.

    On February 12, the Nordex Group presented its preliminary financial results for 2023, achieving its targets for the year. Sales climbed to just under EUR 6.5 billion, exceeding not only the previous year's figure of EUR 5.7 billion but also the Company's own sales forecast of a maximum of EUR 6.1 billion. In terms of earnings before interest, taxes, depreciation and amortization (EBITDA), Nordex achieved a precision landing on the break-even point with EUR 2 million for the full year, compared to a loss of EUR 244 million in the previous year. That brings us to Nordex's challenge. The profit margin remains too low.

    Furthermore, Nordex has improved its working capital ratio from minus 10.2% in the previous year to minus 11.5%. The initial expectation was minus 9%. At EUR 131 million, capital expenditure was lower than expected and well below the previous year's figure of EUR 205 million. The final figures are to be presented on February 29. The numbers were well received, and the share was able to establish an upward trend. The share is currently trading at EUR 10.43.


    While Nel ASA is finding it difficult to get into the profit zone and thus to obtain new financing, the outlook for Klimat X Developments is much brighter. The Company can sell its projects to customers in advance and thus finance its long-term projects. This helps not only the environment but also everyone else involved. Nordex has also successfully managed to work its way out of the red. While it will close the past year at breakeven, things are set to improve in the coming year.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Fabian Lorenz on December 11th, 2024 | 07:45 CET

    New hydrogen hype in 2025? Nel ASA, thyssenkrupp nucera, Plug Power, and First Hydrogen

    • Hydrogen
    • greenhydrogen
    • renewableenergies

    Is nuclear-based hydrogen fueling a comeback for the industry? The growing energy demand for AI and other technologies is straining electricity grids. Shares of First Hydrogen have surged 17% following its announcement to venture into small nuclear reactors for hydrogen production, yet the Company is still valued at less than CAD 20 million. Nel is to build a pilot plant in South Korea to produce hydrogen from surplus nuclear power. However, the valuation of the Norwegian company still seems too high. Plug Power shareholders might face turbulent times in the coming weeks as short-sellers position themselves. By contrast, thyssenkrupp nucera is recommended as a "Buy". Which hydrogen player will take off in 2025?

    Read

    Commented by André Will-Laudien on December 9th, 2024 | 07:15 CET

    DAX 20,400 – Year-end rally underway! 100% opportunities are still lurking at Shell, BP, Saturn Oil + Gas, Nel ASA, and Plug Power

    • Mining
    • Oil
    • renewableenergies
    • Hydrogen
    • Fuelcells

    All EU countries have ramped up their alternative energy production in recent years. In particular, countries like Germany achieved a 65% share of electricity from renewable sources in the first half of 2024, with wind and solar as the main drivers of growth. However, the conflict in Ukraine since 2022 has now jeopardized the achievement of the 2050 targets more than ever because the lack of affordable fossil gas is threatening the transformation of the economy. The rising gas prices of recent weeks have awakened bad memories of 2022 among European energy traders and politicians alike. When the continent was in a rush to end its dependence on Russian gas, prices had already risen by 400%. The energy sector offers great opportunities – timing is of the essence!

    Read

    Commented by Armin Schulz on December 9th, 2024 | 07:00 CET

    Volkswagen, ARI Motors, BYD – Electric vehicles in the fast lane: Time to invest

    • Electromobility
    • renewableenergies

    The automotive industry is undergoing a period of profound upheaval that is shaking established structures. While electric vehicles are breaking new records worldwide, the European and American markets are faltering – a development forcing manufacturers like Volkswagen to make strategic changes. At the same time, Chinese players such as BYD are setting new standards with their dynamism and innovative strength. However, it is about more than just drives: software, networking, and digital sales concepts are revolutionizing the industry. We take a look at three companies that could be worth investing in.

    Read