Fourth quarter and full-year 2022 financial results

16 February 2023 – The fourth quarter was Nekkar ASA’s (Nekkar) strongest revenue-wise in 2022 with revenue of NOK 125 million (Q4 2021: 138). EBIT in the fourth quarter ended at NOK 34 million (45). Order intake was NOK 105 million (28) resulting at a healthy order backlog of NOK 824 at the end of 2022. The company’s balance sheet remains solid, with NOK 181 million in net cash. Subsequent to year-end, the company signed a breakthrough contract for the InteliWell joint venture.

“Our operational performance in the fourth quarter has been good, reflecting strong revenues from both newbuild and aftermarket projects. Our order intake echoes continued high tendering activity within Shipyard Solutions, and we experience encouraging progress for our impact technologies. Overall, the fourth quarter was another step in the right direction for all our business areas,” says Ole Falk Hansen, CEO of Nekkar.

Order intake in the fourth quarter was NOK 105 million (28), close to four times as high as the corresponding quarter in 2021. The order intake includes a USD 10 million contract for upgrade of third-party shiplift systems in Dubai Maritime City. Nekkar’s order backlog remains strong at NOK 824 million as of 31 December 2022, providing excellent visibility for the Shipyard Solutions business area in the coming years.

Nekkar reported revenue of NOK 125 million (138) in the fourth quarter 2022. The company’s operational EBITDA was NOK 13 million (47), negatively affected by a USD depreciation versus NOK during the fourth quarter 2022. Reported EBITDA was NOK 38 million (48), positively affected by gain on FX contracts, and EBIT was NOK 34 million (45).

“As the majority of Nekkar’s projects are invoiced in USD, both operational and reported EBITDA become impacted – in opposite directions. However, the underlying operational and financial performance is good in Nekkar,” adds Ole Falk Hansen.

Nekkar’s balance sheet remains solid. At year-end 2022, the company had NOK 181 million in cash, no interest-bearing debt, and an undrawn NOK 200 million credit facility available for future investments.

IMPACT TECHNOLOGIES

Nekkar is currently developing sustainable and digitalized impact technologies that aim to unlock customer value in ocean-based industries. These technologies include the InteliWell rig automation solution, SkyWalker wind turbine installation tool, and Starfish closed fish cage. The fourth quarter of 2022 and subsequent months have been productive for Nekkar’s drive towards commercialization of these impact technologies.

In November 2022, BMS Heavy Cranes entered into an innovation agreement for the development and testing of the SkyWalker wind turbine installation tool. Moreover, Nekkar has in recent months received approaches from operators of offshore wind farms who express an interest in utilizing SkyWalker for equipment replacements at offshore wind farms.

“Our original intention for SkyWalker was to use it solely as a wind turbine installation tool, first onshore and then for quayside assembly of offshore wind turbines. However, recent requests from operators indicate that they are interested in deploying SkyWalker in the operations and maintenance phase of an offshore wind farm. This could expand its commercial potential significantly,” adds Ole Falk Hansen.

Subsequent to the end of the fourth quarter, the InteliWell joint venture, which Nekkar is part of together with Transocean and Viasat, has signed its first commercial contract. The four-year contract is with an undisclosed major rig operator. Nekkar’s subsidiary, Intellilift, will execute the project on behalf of the joint venture during 2023.

FULL-YEAR 2022 RESULTS

For the full year 2022, Nekkar delivered revenue of NOK 388 million (2021: 480), with an operational EBITDA of NOK 70 million (143), reported EBITDA of NOK 62 million (140) and EBIT of NOK 52 million (135). Order intake was NOK 257 million in 2022, versus NOK 113 million the year before. Net cash flow from operations was NOK 38 million (-59.6 million).

Since 2019, Nekkar has implemented a strategy to drive more revenue from sales of services, spare parts and upgrades for shiplifts and transfer systems. This strategy continues to yield results. In 2022, revenue from service grew by 48 percent to NOK 68 million, while order intake from service increased 30 percent versus the prior year.

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