Nel warns of continued cost pressure on margins

Norwegian electrolyser manufacturer reports 25pc rise in value of order backlog despite intensifying competition

Electrolyser and hydrogen fuelling system manufacturer Nel expects its margins to remain under pressure in the medium term from rising commodity prices and supply chain disruptions in an increasingly competitive market. Competition is intensifying as Nel and others are ramping up production capacity, the Oslo-based company says. Nel has also been “negatively impacted” by pandemic-related travel restrictions and disruptions in the supply chain. “At the same time, raw material costs have increased. In combination all of this has put pressure on the margins and will continue to do so in the medium term,” the company says in its latest earnings report. Nel says raw material costs in the fourth q