Hav Group ASA
Hav Group ASA
11/22/2024 | Press release | Distributed by Public on 11/22/2024 00:17
Third quarter financial results 2024
Fosnavåg, Norway, 22 November 2024: HAV Group ASA (HAV Group, OSE: HAV) delivered revenue of MNOK 134.8 in this year's third quarter (Q3 2023: MNOK 193). Consequently, EBITDA in the third quarter ended at MNOK -24.8 (MNOK -17). The group's order backlog stood at a solid MNOK 1,322 at the end of the quarter, more than twice as high as the same time last year (MNOK 607). The large number of recently won contracts are still in the start-up phase and therefore yet to generate noticeable income contribution.
"We stated in the second quarter presentation that our multiple recent contract awards, particularly for our energy design and smart control systems business, are expected to give effect from 2025. That is still the case. In the meantime, we continue to win new contracts. 2024 has been disappointing from a financial perspective but encouraging when it comes to order intake and market development," says Gunnar Larsen, CEO of HAV Group.
DNB has waived all financial covenants for Q3 and Q4 reporting. The company and the bank have agreed to set a new covenant structure that reflects HAV Group's growth phase and project-based business within Q1 2025 reporting. As a requirement from DNB, HAV Group has committed to selling all its treasury shares (3 466 829) within 31.12.24. HAV Group will initiate a process to sell the shares shortly. Havila Holding AS has provided a guarantee for the purchase of the shares at a price of NOK 8.50 per share.
New contracts announced in the third quarter include delivery of battery package contracts for two vessels, including a breakthrough award in the live fish carrier market. Subsequent to the end of the third quarter, HAV Group won a contract valued somewhat below MNOK 100 for delivery of energy design, integrated automation system and future oriented bridge system and battery package to newbuild field support vessel.
"Tender activity remains high across our segments, and we are winning our fair share of business. However, we are at the same time experiencing that ongoing customer project schedules are pushed to the right, which has a knock-on effect on deliveries and revenue generation from HAV Group. It is important to underline that this is deferred and not lost revenue," adds Gunnar Larsen.
HAV Group delivered revenue of MNOK 134.8 (193) in the third quarter of 2024. EBITDA ended at MNOK -24.8 (-17). Net profit was MNOK -19 (-18.6). Cash flow from operations was solid at MNOK 30.5 (-7.5). HAV Group has MNOK 148.8 in cash and cash equivalents and limited interest-bearing debt of MNOK 34.5.
OUTLOOK
Global megatrends, including regulatory changes as well as increasing pressure on vessel and cargo owners to remain competitive, provide commercial incentives and regulatory requirements for the maritime industry to invest in vessels' lifecycle performance. HAV Group possesses the technologies and products that enable shipowners to optimize their vessels' operational, financial and environmental performance.
HAV Group expects revenue to grow in 2024 (vs 2023), and that revenue will grow significantly in 2025 on the back of recent contract wins and healthy tender activity, with associated margin improvements.
Subsidiary Norwegian Greentech is in the final stage of contract negotiations with a customer within the segment of land-based aquaculture. Expected contract value is approx. MNOK 10.
Q3 2024 PRESENTATION
HAV Group will present its third quarter 2024 financial results via webcast today at 08:00 CET. Presenters are Gunnar Larsen, CEO, and Pål Aurvåg, CFO.
Link to webcast: https://vimeo.com/event/4722537
Questions can be submitted during the webcast. However, questions submitted in advance via the link will have better chance of being answered. Questions can be submitted through this URL: https://www.menti.com/alw6m3y8o95v
The presentation material and third quarter 2024 report are enclosed to this announcement. *EBITDA and other alternative performance measures (APMs) are defined and reconciled to the NGAAP financial statements as a part of the APM section of the annual report.
For additional information, please contact:
Gunnar Larsen, CEO
[email protected]
+47 901 05 694
About HAV Group
HAV Group and its subsidiaries (together: "HAV Group") is an international provider of technology and services for maritime and marine industries. HAV Group has several decades of industry experience, in addition to special expertise in guiding the marine and maritime industries through the green shift and towards the goal of zero emissions. HAV Group ASA is listed on Euronext Growth under the ticker code HAV.
You will find the third quarter financial results 2024 report and presentation here