NEL ASA shares decline following weak quarterly results

NEL ASA shares experienced a downturn following the release of quarterly financial results that showed a significant decrease in revenue from customer contracts. For the third quarter, revenue fell to 112 million NOK, compared to 303 million NOK in the same period last year, missing the average market expectation of 202.2 million NOK.

While the company reported an increase in order intake, a substantial portion of the existing order backlog is considered at risk of delay or cancellation. The stock had previously seen gains following a Memorandum of Understanding with Rheinmetall regarding synthetic renewable fuels, but investors have reacted to the lack of concrete contracts, volumes, or specific timelines associated with that partnership.