Nekkar ASA (Nekkar) reported record high revenue of NOK 138 million in the fourth quarter of 2021, up from NOK 132 million in the same quarter last year. Operational EBITDA was NOK 47 million (Q4 2020: NOK 38 million), equivalent to an operational EBITDA-margin of 34.3 percent (29.3%). Nekkar’s order backlog was NOK 838 million at year-end 2021.
“We are delivering both stronger revenues and higher operational EBITDA-margin than we have seen in previous quarters and years. During the fourth quarter, Nekkar successfully completed four large shiplift projects in our Shipyard Solutions business area. The project deliveries had a positive impact on revenues and margins in the quarter.” says Preben Liltved, interim CEO of Nekkar.
Increased service order intake
As clients may delay investment decisions for newbuild projects, Nekkar initiated a project in 2019 to generate more service revenues from its extensive global installed base of ship lifts and transfer systems.
In 2021, Nekkar’s order intake from aftersales and services grew by 165 percent year-over-year, from NOK 27.6 million to NOK 73.2 million.
“Both order intake and revenues from services are showing promising development. We expect this to continue into 2022 and beyond. In addition, we expect to see contract awards for newbuild projects in 2022,” adds Preben Liltved.
Nekkar reported revenues of NOK 138 million (132) in the fourth quarter 2021. The company’s operational EBITDA was NOK 47 million (38), equivalent to an operational EBITDA-margin of 34.3 percent (29.3%). Operational EBITDA excludes losses/gain on foreign exchange contracts not qualifying for hedge accounting. Reported EBITDA was NOK 48 million (61). EBIT ended at NOK 45 million in this year’s fourth quarter (60).
At year-end, Nekkar’s order backlog stood at a healthy NOK 838 million (1,167).
Nekkar’s balance sheet remains strong with no interest-bearing debt and cash and cash equivalents of approximately NOK 180 million at year-end.
Good progress on impact technology projects
In addition to the Shipyard Solutions business, Nekkar has three business areas: Digital Solutions, Aquaculture and Renewables.
In the Digital Solutions business area, Nekkar’s subsidiary company Intellilift AS established a joint venture company (JV), named Inteliwell, together with a subsidiary of Transocean Inc. in the fourth quarter. The JV’s purpose is to commercialize software-based products and services that enable digital well construction to rig operators and oil companies. The solution aims to generate platform fees and SaaS revenues for Intillilift.
In the Aquaculture business area, testing of the scaled-down Starfish closed fish cage progresses as planned, showing promising results. In the fourth quarter, Nekkar has also progressed plans to build the first full-scale Starfish closed fish cage, placing orders for key long lead items.
“We have also initiated advanced discussions with a leading Norwegian fish farming company regarding the location for the full-scale Starfish test later in 2022,” says Preben Liltved.
Within the Renewables business area, development of the SkyWalker wind turbine installation tool is progressing according to plan. Nekkar is currently conducting tests on the 1:20 SkyWalker model, in addition to finishing design of the full-scale prototype. Nekkar and the company’s innovation partners are also in ongoing discussions about the most optimal go-to-market model for the SkyWalker solution.
Presentation at 08:00 am today
The fourth quarter and full-year 2021 interim financial results presentation is enclosed to this announcement.
Nekkar ASA will hold a live webcast presentation today at 08:00 CET. The webcast presentation can be found here.