Mega deal Samsung EA becomes Nel ASAs largest shareholder What does this mean for the hydrogen industry

The hydrogen industry is on the move! On March 11, 2025, Samsung E&A (formerly Samsung Engineering) $005930 caused a stir with a strategic investment in Nel ASA $NEL (-8 %) caused quite a stir. The South Korean company acquired 167,132,530 newly issued shares in the Norwegian hydrogen specialist at a price of NOK 2.1125 per share. This corresponds to a total volume of approximately NOK 353 million (USD 33 million). This means that Samsung E&A now holds 9.1% of the shares, making it Nel's largest single shareholder.

But this is not just a pure equity investment - there is a much bigger strategy behind it.

Background to the cooperation

In addition to the financial participation, Samsung E&A and Nel have concluded an EPC cooperation agreement (Engineering, Procurement, Construction). This provides for

✅ Integration of Nel's hydrogen technology: Samsung E&A will offer its customers complete hydrogen plants based on Nel's alkaline and PEM electrolyzers in the future.

✅ Development of a new balance-of-stack system: Both companies will work together on extended system integration for Nel's alkaline electrolyzers.

The aim? To strengthen global competitiveness and expand market presence!

Why is this exciting for investors?

Following the announcement, Nel ASA shares experienced an explosive rise of almost 50% on the Oslo stock exchange. This shows: Investor confidence in the long-term future of Nel is back!

Short-term effects:

📈 Strong share price reaction: Investors see Samsung E&A's investment as a vote of confidence in Nel's technology.

📊 Improved financial situation: The capital increase provides Nel with urgently needed financial resources for further growth.

Long-term potential:

🔋 Growth through South Korea's hydrogen strategy: South Korea is focusing heavily on hydrogen - Samsung could serve as a door opener for large projects.

🌍 Global expansion: The partnership can help to market Nel's electrolysers worldwide on a large scale.

🤝 Synergies with Samsung E&A: Samsung has enormous experience in large-scale projects and could scale up Nel's technology to market maturity.

Key figures:

Nel ASA published its annual report for the fourth quarter of 2024 on February 26, 2025, which provides a detailed insight into the company's financial performance.

Key financial figures for Q4 2024:

-Revenue: NOK 416 million, comparable to NOK 412 million in Q4 2023.

-EBITDA: NOK -36 million, an improvement compared to NOK -78 million in the same period last year.

-Net profit/loss: A net loss of NOK 64 million, compared to a loss of NOK 50 million in the fourth quarter of 2023.

-Order intake: NOK 148 million, an increase of 13% compared to the fourth quarter of 2023.

-Order backlog: NOK 1,614 million at the end of the quarter, a decrease of 23% compared to the previous year.

-Liquidity: A cash balance of NOK 1,876 million at the end of the quarter.

Segment analysis:

-Alkaline segment: Reported positive EBITDA of NOK 19 million, supported by higher sales, solid gross margins on device shipments and milestone payments for technology licenses.

-PEM segment: Reported negative EBITDA of NOK 22 million, mainly due to low sales in the quarter.

These figures illustrate Nel's continued efforts to improve profitability and increase operational efficiency. Despite a slight decrease in order backlog, the company remains financially solid and is well positioned to benefit from future market opportunities in the hydrogen sector.

My conclusion

This investment by Samsung E&A not only gives Nel fresh capital, but also a strong strategic partner. The close cooperation could be the game changer for Nel's future.

➡️ Are you invested in Nel ASA or other hydrogen stocks?

➡️ Do you think the hydrogen industry is on the verge of a major breakthrough?

🔗 Finanzen.net Artikel über Samsung E&A und Nel

🔗 ASA Pressemitteilung zur Samsung-Kooperation

🔗 Nel ASA Q4 2024 Finanzbericht

🔗 Wallstreet-Online zu Nels Aktienkurs

🔗 Onvista Unternehmensprofil von Nel ASA

🔗 Finanzen.net Bilanz und GUV von Nel ASA

🔗 Solarbranche.de zu Nel ASA Geschäftszahlen Q4 2024

Michael K.@AlexisMachine

3Sem.

You don't invest in penny stocks. At most, you gamble with them. But when in doubt, I prefer a casino. I get a lot more out of it.

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Antonio🐝@TonyMelony1998

It all depends on how you invest. Of course, many penny stocks are highly speculative and often just gambling - especially in the case of companies without a solid business model or sustainable prospects. But there are also exceptional cases such as Nel ASA, which currently falls under the penny stock definition, but is active in a promising market such as hydrogen and has genuine industrial partnerships (e.g. now with Samsung E&A).

Of course, the risk remains high, but there are also opportunities. Anyone investing here should be aware that in the long term it can either be a breakthrough or a total loss - so definitely not an investment for everyone. But just because a share is cheap does not automatically mean that it is worthless.

thedonofstocks@der_Don

@TonyMelony1998 I think what you're saying is important. If the share cost €27 instead of €0.27, the whole community would jump on it again and buy themselves silly with it. Just because it's a penny stock doesn't mean it's a bad company.

@der_Don Completely wrong. I wouldn't touch the share even at 27 euros. It's about the market capitalization. And there's a good reason for that.

@AlexisMachine That's perfectly fine if it's not for you. But Samsung probably has a reason why they're putting $33 million into it. 🤷🏾‍♂️

@der_Don They are worth billions. They have a reason why they don't put in 330 million.

Tommy@Bluenuuk

So I am and will remain invested there. And if it takes 10 years😝

@Bluenuuk If you think so. You have several hydrogen stocks in your portfolio. Compare their performance with your Siemens Energy shares. But why not? *g*

@AlexisMachine You can't say that. You can see the market cap. They only want to take ownership of part of the company, apparently. Putting 33 million into such a company is equivalent to buying 10% of NVIDIA.
Because 33 million is just 10% of Nel in terms of market capitalization.
You don't always have to invest hundreds of millions if you are convinced by other companies.
33 million is still 33 million.

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@der_Don 10% from Nvidia would indeed be a "mega deal". To compare that with 10% from Nel is quite daring.

@AlexisMachine You have to see this in correlation with each other. They bought 10% of the company with 33 million. You said why they don't invest 330 directly if they are convinced of it. But for what? They have now acquired a cheap 10% of a company with a future. What I'm saying at the end of the day is, even though Samsung is a billion dollar company, they don't always have to throw hundreds of millions at it if they are convinced of another company.

Mega deal: Samsung E&A becomes Nel ASA's largest shareholder - What does this mean for the hydrogen industry?