22 February 2024 – Endúr ASA (Endúr) continues to deliver healthy financial results, achieving a pro forma adjusted EBITDA margin of 13.2 percent in the fourth quarter (Q4 2022: 13,3%). The pro forma revenue of NOK 658.9 million was higher than last quarter (583.4), but, as expected, lower than the same quarter in 2022 (901.4) due to lower revenue from Aquaculture Solutions.
The proforma figures consolidates Repstad throughout 2023 (closing December 14).
“The fourth quarter was solid, but by no means near our full potential. The segments Marine Infrastructure and Other deliver strong financial results, but Aquaculture Solutions shows negative results due to estimate revisions per year-end. However, we expect revenue and results from this segment to improve as new projects goes into building”, says Jeppe Raaholt, CEO of Endúr.
The fourth quarter order intake was NOK 286 million (243), excluding order intake of approximately NOK 75 million from Repstad. Including Repstad, the Group’s order backlog was NOK 1.9 billion at year end (1.7). The order backlog does not yet include the construction phases for Salmon Evolution phase 2 and Geo Salmo phase 1. These projects have an estimated combined value of NOK 2.5 billion.
Endúr’s cash flow from operating activities was NOK 54.7 million (129.4) in the fourth quarter. Net cash flow was NOK 16.9 million (53.5).
HIGH MARINE INFRASTRUCTURE ACTIVITY
Endúr’s largest operating segment, Marine Infrastructure, continues to deliver strong financial results. In the fourth quarter 2023, revenue was NOK 510.7 million (544.2). EBITDA was NOK 94.6 million (115), with an EBITDA margin of 18.5 percent (21.1%). The reduction in revenue and results is caused by gains from sale and lease-back of machinery in Repstad in Q4 2022. Underlying results are equally strong in Q4 2023.
In the fourth quarter 2023, Endúr acquired 100 percent of the shares in the Marine Infrastructure company Repstad in order to increase its presence within infrastructure services in an accretive and geographically complementary transaction.
“We experience a strong market outlook for all Marine Infrastructure segment niches. Bringing Repstad into Endúr ensures even stronger exposure to an industry that we expect will grow significantly in both Norway and Sweden in the coming decade”, says Jeppe Raaholt.
Revenue in the Aquaculture Solutions segment was NOK 76.1 million in the fourth quarter 2023 as the work force was fully utilised on design and planning activities, as well as production of feed barges. The decline in revenue from the same quarter in 2022 (299.6) reflects less capital-intensive construction works in the current project mix. EBITDA ended at NOK -9.1 million in the fourth quarter 2023 (1.2) due to estimate revisions per year-end. Endúr has successfully completed a process to increase its feed barge production capacity and recently announced NOK 98 million in new orders from Cermaq.
In the business segment Other, Endúr Maritime continues to deliver improved results, with revenue of NOK 71.2 million (59.5) and EBITDA of NOK 6.5 million (5.6), equivalent to an EBITDA margin of 9.1 percent (9.4%).
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 growth opportunities.
Within Aquaculture Solutions, the long-term outlook for land-based fish farming remains highly attractive. Detailed plan phases for Salmon Evolution phase 2 and Geo Salmo phase 1 are approaching finalization.
COMPANY PRESENTATION AT 08:00 CET TODAY
Endúr will host a 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/20240222_1/
The fourth quarter 2023 results presentation is enclosed to this announcement.
Endúr ASA Q4’23 Quarterly Presentation
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 22 February 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
