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Endur ASA

Endúr ASA: First quarter 2024 financial results

By 15.05.2024No Comments

15 May 2024 – Endúr ASA (Endúr) delivered improved margins and cash conversion in a seasonally strong first quarter. Adjusted EBITDA ended at NOK 67 million (Q1 2023: NOK 62 million, proforma), giving an EBITDA margin of 11.6 percent (Q1 2023: 9,7%). Revenue was NOK 575.8 million, as expected down from a construction-heavy first quarter of 2023 (Q1 2023: NOK 640.1 million). Endúr reiterates expectations of significant revenue growth into 2024/2025.

Q1 2023 pro forma figures includes Repstad Anlegg AS, which was acquired in Q4 2023.

“We deliver a seasonally strong result, with Marine Infrastructure as the top performing segment. EBITDA, margin, cash conversion and order backlog all improved versus the same quarter last year, reflecting enhanced operational performance and even stronger markets for our business segments,” says Jeppe Raaholt, CEO of Endúr.

Order intake in the first quarter 2024 was NOK 465 million, growing the order backlog by 7 percent during the quarter to approximately NOK 2.0 billion (Q1 2023: NOK 1.9 billion). The backlog does not reflect signed build-out contracts for Salmon Evolution Phase 2 and Geo Salmo phase 1 with an estimated combined contract value of NOK 2.5 billion.

Cash flow from operating activities was NOK 70.1 million in this year’s first quarter (Q1 2023: NOK -51,8 million).

BUSINESS SEGMENT UPDATE
Endúr’s Marine Infrastructure segment increased its quarterly revenue by 3 percent to NOK 418.5 million compared to the same period last year (Q1 2023: NOK 407.6 million). The EBITDA result of NOK 59.2 million was identical to last year (Q1 2023: NOK 59.2 million), providing an EBITDA margin of 14.1 percent (Q1 2023: 14.5%).

“The first quarter is the winter season which obviously affects activity levels for an outdoor marine infrastructure business, but we still delivered a seasonally strong EBITDA margin. We do, however, expect this margin to improve throughout 2024,” adds Jeppe Raaholt.

Revenue in the Aquaculture Solutions segment was NOK 91.7 million as Endúr subsidiary Artec Aqua’s workforce was fully utilized on design and planning activities. The decline in revenue compared to last year’s first quarter (Q1 2023: NOK 154.8 million) is explained by less capital-intensive construction work in the current project mix. In March, Artec Aqua was awarded a NOK 70 million contract from Eide Smolt for rehabilitation of a smolt facility. The construction phase for this project has commenced and has a building period of nine months.

In the business segment “Other”, Endúr Maritime delivered revenue of NOK 65.4 million (Q1 2023: NOK 81.0 million), with EBITDA of NOK 4.8 million (Q1 2023: NOK 7.5 million), equivalent to an EBITDA margin of 7.3 percent (Q1 2023: 9.3%).

OUTLOOK
Increasing maintenance gaps on critical infrastructure is expected to continue driving investments in the Marine Infrastructure segment. Large infrastructure projects have been ratified in Sweden, and this is expected to create attractive opportunities. Further, the Norwegian National Transport Plan for 2025-2036 indicates substantial increases in infrastructure investments in Norway.

Within Aquaculture Solutions, the long-term outlook for land-based fish farming remains attractive, with continued progress for Salmon Evolution phase 2 and Geo Salmo phase 1.

Endúr is awaiting clarification on several outstanding tenders.

COMPANY PRESENTATION AT 08:00 CET TODAY
Endúr will host live webcast presentation today at 08:00 (CET). Investors, analysts and media are invited to watch the webcast from the following URL:
https://channel.royalcast.com/landingpage/hegnarmedia/20240515_6/

The first quarter 2024 results presentation is avalable on the Company’s website: Financial Reports

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Einar Olsen, CFO of Endúr ASA, on 15 May 2024 at 07:00 CET.

(ENDS)

For further information, please contact:

Media
Jeppe Raaholt, CEO of Endúr, tel: +47 976 69 759

Investors
Einar Olsen, CFO of Endúr, tel: +47 924 01 787

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