30 August 2023 - Nekkar ASA (Nekkar) delivered revenue of NOK 132 million in the second quarter of 2023, up 32 percent from the same quarter last year (Q2 2022: 100). Operational EBITDA was NOK 27 million (25), equivalent to an operational EBITDA margin of 20.6 percent (24.7).
“We delivered another solid quarterly financial result. Coupled with a more diversified revenue base, healthy order intake and high tender activity, we believe that we are well positioned to generate further growth in the coming years,” says Ole Falk Hansen, CEO of Nekkar.
Order intake in the second quarter of 2023 was NOK 148 million, a significant improvement from the same quarter last year (24). The order intake includes three shiplift and ship transfer system contracts for Syncrolift worth approximately NOK 85 million, and a EUR 4 million crane contract for Techano Oceanlift.
Nekkar's order backlog stood at NOK 864 million (795) as of 30 June 2023, which provides excellent visibility for Nekkar’s subsidiary Syncrolift in the next couple of years.
Nekkar reported revenue of NOK 132 million (100) in the second quarter. The company's operational EBITDA* was NOK 27 million (25), representing a margin of 20.6% (24.7%). Reported EBITDA was NOK 36 million (6), while EBIT was NOK 34 million (4).
Cash conversion has been very strong in the first half of 2023. Cash flow from operations was NOK 81.7 million in H1 2023 versus NOK 21.9 million in the same period last year. Net cash flow was NOK 54.8 million in H1 2023 compared to NOK 13.7 million in H1 2022.
Consequently, Nekkar's balance sheet remains solid. At the end of the second quarter 2023, the company had NOK 236 million in cash, no interest-bearing debt, and an undrawn NOK 200 million credit facility available for future investments.
In the past couple of years, Nekkar has provided full financial reporting (profit and loss, balance sheet and cash flow) for Q2/H1 and Q4/H2, with an operational update and limited financial reporting (profit and loss only) for Q1 and Q3. Going forward, Nekkar will report profit and loss, balance sheet and cash flow in all four quarters of the year.
The second quarter of 2023 was the first quarter when Nekkar generated revenue from three different subsidiaries.
Syncrolift, which is the world’s leading supplier of shiplifts and ship transfer systems, delivered the main proportion of revenue with NOK 118 million. Recently acquired subsidiary Tecano Oceanlift, which provides cranes, gangways and fish handling systems, had revenue of NOK 7 million in the second quarter. Intellilift delivered revenue of 9 million as it successfully installed its InteliAutomate solution on board the Transocean Norge deepwater drilling rig through the InteliWell joint venture, which has Transocean and Viasat as the two other JV partners.
“We expect Intellilift and Techano Oceanlift to continue to be revenue contributors going forward. Both companies are pursuing interesting opportunities, but it is difficult to predict the exact timing of potential contract awards,” says Ole Falk Hansen.
During the second quarter, Nekkar entered into agreements with three different offshore wind consortiums that aim to utilise SkyWalker as major component exchange tool on wind turbine generators should the consortiums’ bids be successful in Norway’s first offshore wind licensing round.
“The interest is our SkyWalker tool is constantly growing, and we are highly encouraged by the high-profile renewables companies that show an interest in utilising the technology offshore Norway,” adds Ole Falk Hansen.
For Starfish, we are pleased to announce that we partner with BEWI Invest through a joint investment in the aquaculture industry supplier FiiZK. FiiZK is the leading provider of closed cage systems for fish farming. The company also provides software tools for optimising fish farming planning, operations, and analysis.
“The integration of FiiZK’s established market position and Nekkar’s Starfish technology strengthens the company’s position as the market leading provider of closed cage solutions and aquaculture software,” says Ole Falk Hansen. See separate stock exchange announcement for more details.