Nel ASA shares: company stops production due to the Corona virus
The hydrogen company Nel ASA is reducing its production in Wallingford, in the United States. The government order stipulates that the majority of activities in the establishment must be suspended until the second half of April. The reason is the corona virus, which is also increasingly affecting the United States. The total number of cases registered in the United States is now 46,145.
Meanwhile, in the wake of the pandemic, Nel ASA is facing new challenges far from falling share prices and production cuts. Restrictions on international travel have a negative impact on the commissioning of hydrogen systems. However, Bloomberg reports that activities in Norway and Denmark can initially continue without significant restrictions.
Nel ASA is confident
Meanwhile, the Norwegians focus on taking all security measures: “We have followed the situation closely from the start and implemented the procedures recommended by the World Health Organization and the national authorities. The safety and well-being of our employees and fellow citizens is our top priority“.
According to the group, Nel ASA has a solid cash portfolio. In addition, the group is almost debt free. Even more: Nel confirms the positive market outlook and the hydrogen forecasts.
The action of hydrogen with a sharp drop in value
A little over a month ago, on February 19, Nel listed ASA at 1.47 EUR. Since then, the price for hydrogen has dropped considerably. The current price is 0.88 EUR per security. As a result, the value dropped by about 40% in one month.
However, Nel ASA is by no means an exception. Other companies, particularly so-called conservative factories, are also under fire. The DAX score has dropped to 37.2% since February 17. So it doesn’t seem like something has necessarily changed in the hydrogen sharing potential – it’s rather the general market trends that worry the group.