Nekkar ASA: Third quarter 2023 financial results

28 November 2023 - Nekkar ASA (Nekkar) delivered revenue of NOK 162 million in the third quarter of 2023, an increase of 105 percent from the same quarter last year (Q3 2022: 79). EBITDA was NOK 29 million, up 71% from the same quarter last year (17), equivalent to an EBITDA margin of 17.8 percent (22.0). Signing of 15 MUSD contract subsequent to the quarter.

"Steady project execution in all businesses lies behind another strong quarter from Nekkar. We are very pleased with the progress being made in both Syncrolift business and our growth companies,” says Ole Falk Hansen, CEO of Nekkar.

Order intake in the third quarter of 2023 was NOK 61 million (117), including a NOK 30 million contract to deliver an advanced ship transfer system to an undisclosed European naval shipyard. No major tenders were awarded nor lost in the third quarter.

Nekkar's order backlog stood at a healthy NOK 747 million (894) at the end of September 2023. The majority of the backlog is linked to Syncrolift’s ship transfer and shiplift business, with approximately NOK 500 million estimated for execution by the end of 2024.

“We are experiencing high tendering activity for both Syncrolift and Techano Oceanlift, and we are hopeful of winning new contracts by year-end. Timing of awards is of course outside our control, but our order backlog nevertheless provides excellent visibility over the next 18 months,” says Ole Falk Hansen.

Subsequent to the end of the third quarter, Nekkar’s subsidiary Syncrolift was awarded a USD 15 million purchase order to deliver a shiplift and transfer system to the Indonesia government-owned company PT Pal for naval and commercial use.

Nekkar reported revenue of NOK 162 million (79) in the third quarter. EBITDA was NOK 29 million (17), equivalent to an EBITDA margin of 17.8 percent (22.0). EBIT was NOK 27 million (15). Cash flow from operations was NOK -35 million in the third quarter, primarily caused by increase in working capital as projects approach invoicing milestones. Nekkar’s balance sheet remains solid with NOK 166 million in cash, no interest-bearing debt, and an undrawn NOK 200 million credit facility available for future investments.

BUSINESS SEGMENT PROGRESS

Nekkar generated revenue from three different subsidiaries in the third quarter: Syncrolift with NOK 149 million (78), Intelllilft with NOK 6 million (5) and Techano Oceanlift with NOK 9 million (0).

In August, Nekkar announced that it would partner with BEWI Invest through a joint investment in aquaculture industry supplier FiiZK – a leading provider of closed cage systems and software solutions for fish farming. The transaction was completed at the end of September. Nekkar invested NOK 50 million for a 39 per cent ownership share in FiiZK. The consideration consisted of NOK 25 million in cash and a NOK 25 million payment in-kind contribution through Nekkar's cutting-edge Starfish technology. The following restructuring of FiiZK is progressing as planned. FiiZK are amongst other things, delivering closed cage solutions for more sustainable sea based farming.

"The Techano Oceanlift acquisition and the investment in FiiZK are good examples of our flexible business development mandate. We are constantly looking for ways to broaden our total customer based and scale up businesses. Integrating our Starfish closed fish cage in FiiZK was a sensible and natural step in its development phase,” adds Ole Falk Hansen.

PRESENTATION AT 08:00 AM TODAY

Nekkar ASA will hold a live webcast presentation today at 08:00 CET. The presentation can be viewed from this URL.

The presentation material is enclosed to this announcement.