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 (-3,71%) 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
