18 February 2021 – Nekkar ASA (Nekkar) reported revenues of NOK 230 million in the second half of 2020, an increase of 41 percent versus the same period last year, and an operational EBITDA of NOK 52 million, equivalent to an EBITDA-margin of 22.7 percent. The company’s order backlog was record-high at the end of 2020.
“Operationally and financially, it was a solid six months. Our shipyard solutions business area continues its positive trend of growing its revenues while also improving its profitability. In addition, we have made significant progress with our disruptive technology that offers high sustainability impact solutions for the aquaculture and renewable industries,” says Preben Liltved, CEO of Nekkar.
Nekkar reported revenues of NOK 230 million in the second half of 2020, up from NOK 163 million in the corresponding period in 2019. The company reported an operational EBITDA-result of NOK 52 million (50), equivalent to an EBITDA-margin of 22.7 percent (30.7). Operational EBITDA excludes losses/gain on foreign exchange contracts not qualifying for hedge accounting. Reported EBITDA, however, was NOK 75 million (35) in the second half of 2020, equivalent to a margin of 32.7 percent (21.4). Operating profit (EBIT) was NOK 74 million (33).
Order intake in the second half of 2020 was NOK 265 million (308), bringing the order backlog to NOK 1 167 million (778) per 31 December 2020.
Nekkar delivered a net cash flow of NOK 107 million in 2020. The company’s financial position remains solid, with no interest-bearing debt
“Our order backlog is record high, reflecting the continued increased demand of the state of the art ship lift and transfer systems that Syncrolift delivers. Firm contract structure, solid project execution and tight cost control ensure that we have a very positive cash flow,” adds Liltved.
Targeting sustainability impact in aquaculture and renewables
The foundation of Nekkar’s business is superior engineering, electrification, automation, and digitalisation competence and heritage from “Drilling bay” in Kristiansand which is found in the company’s digital solutions business area. Nekkar aims to apply this competence as levers to develop disruptive technologies that can make high growth industry sectors – such as aquaculture and renewable energy – even more sustainable, productive, and profitable.
The unique combination of disruptive technologies and automation sensor legacy will be building blocks for future SaaS offerings from Nekkar.
Throughout the second half of 2020, Nekkar has made significant strides towards realisation of its highly innovative “Starfish” closed fish cage. “Starfish” is a fully automated, closed cage solution that has double protection against escapes, avoids problems with salmon lice due to water intake from deep waters below the cage and collects up to 90 percent of biological waste.
In the fourth quarter last year Nekkar started preparations for ocean testing of a downscaled “Starfish” pilot at Hidra outside Flekkefjord, Norway. Ocean testing of the pilot is scheduled to start in March 2021. Lerøy Seafood Group ASA is cooperation partner at the project, together with Innovation Norway.
“Starfish is an ingenious solution that could reduce OPEX levels dramatically for the fish farming industry, while simultaneously improve fish health. The solution generates a lot of interest in the aquaculture sector, and we look forward to starting ocean testing shortly,” adds Preben Liltved.
Within renewable energy, Nekkar has during the second half of 2020 completed a pre-study of a potentially game-changing wind installation technology to increase sustainability and efficiency. The company will share further details about this solution at a later stage.
2020 full-year results
For the full year 2020, Nekkar reported revenues of NOK 359 million, an increase of 35 percent versus 2019 (267). The company delivered an operational EBITDA-result of NOK 71 million, equivalent to an EBITDA-margin of 19.9 percent, versus NOK 51 million and 19.2 percent in 2019. Reported EBITDA was NOK 77 million in 2020, more than doubling the reported EBITDA in 2019 (36). Operating profit ended at NOK 75 million in 2020, an increase from NOK 33 million in 2019.
In January 2021, Nekkar reached a global settlement in the Cargotec / MacGregor arbitration, resulting in a net total payment of NOK 94 million from Nekkar to MacGregor. The settlement amount is included in loss from discontinued business of NOK 104 million in the statement of profit and loss.
Please find enclosed the second half and full-year 2020 interim results presentation.
For further information, please contact:
Preben Liltved, CEO of Nekkar ASA, tel: +47 48 06 26 91