The equity of Norwegian hydrogen specialist Nel ASA continues to struggle for traction. As December trading progresses, the share price remains anchored at a concerning 2.38 NOK (approximately 0.20 EUR), a level that underscores profound market skepticism. Even with aggressive cost-cutting measures in place, the disappointing third-quarter figures for 2025 have extinguished any upward momentum, raising questions about the potential for further declines.
A Precarious Chart Position
From a technical perspective, the stock is entrenched in a clear downtrend. It currently trades far below its 52-week high of 3.61 NOK (around 0.33 EUR). Market attention is now intensely focused on the psychological support level near 2.40 NOK, which is under persistent pressure.
The critical question for traders is whether this floor will hold. A sustained breach below this mark could trigger another wave of selling, potentially driving the price toward the 2.00 NOK region. For any meaningful trend reversal to materialize, shares would need to convincingly overcome resistance at 2.60 NOK. Achieving this, however, would likely require a significant catalyst—such as a gigawatt-scale order or a miraculous improvement in profitability margins.
Fundamental Pressures Intensify
The company’s fundamental picture remains severely challenged. Its third-quarter 2025 results laid bare the scale of the headwinds. While the Norwegian firm managed a slight improvement in profitability, its growth trajectory has virtually stalled.
The financial data presents a sobering reality:
* Revenue: Plunged to 303 million NOK, representing a year-on-year decrease of approximately 17%.
* EBITDA: Remains negative at a loss of 37 million NOK.
* Cash Position: Stands at about 1.76 billion NOK, providing at least short-term operational runway.
Should investors sell immediately? Or is it worth buying Nel ASA?
This sharp contraction in revenue carries significant weight. It sends an unambiguous signal to the market that the scaling of large-scale hydrogen projects is progressing far more slowly than initially anticipated.
Order Book Volatility Undermines Stability
The current share price reflects broader industry difficulties. The cancellation of a 40-megawatt contract by Statkraft has been particularly damaging, serving as a stark reminder of the volatility within the company’s order backlog. Although minor positive developments occurred in November with new orders from HyFuel and Kaupanes Hydrogen, these are viewed as insufficient to counteract the prevailing downward trend.
The core issue persists: despite the global emphasis on green energy, customers are hesitating to make final investment decisions (FIDs). Until this project pipeline converts into firm revenue, the stock will likely remain under sustained pressure.
Investors are navigating exceptionally turbulent conditions. With the path to profitability obscured and revenues declining, the market is suppressing any speculative optimism. The prevailing strategy on the trading floor is clear: exercise patience until the outlook becomes more transparent.
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