22 August 2024 – Endúr ASA (Endúr) delivered strong financial performance in this year’s second quarter. While revenue of NOK 691.8 million was slightly down from last year (Q2 2023: NOK 716.9 million), adjusted pro-forma EBITDA grew by 6 percent to NOK 97.5 million (Q2 2023: 92.1), equivalent to an adjusted EBITDA margin of 14.1 percent (Q2 2023: 12.8%). Order intake in the quarter was strong at NOK 1,556 million (NOK 1,736 million when including revenue not flowing through quarterly backlog), yielding a book-to-bill ratio of 2.5x.
“We are entering the busy season for outdoor marine infrastructure work, resulting in increasing revenue levels. Even more important is our strong margins, which reflect continued solid operational performance from our marine infrastructure business units,” says Jeppe Raaholt, CEO of Endúr.
The key driver for the quarter’s high order intake and book-to-bill ratio was the FID for Salmon Evolution phase 2, worth approximately NOK 1 billion, plus several awards within marine infrastructure. Endúr’s order backlog stood at NOK 3,031 million at the end of the second quarter, up 53 percent from the beginning of the quarter.
Subsequent to the end of the second quarter, Endúr has announced several additional and material contract awards.
“We are delighted to finally bring Salmon Evolution phase 2 into our backlog. We are experiencing continued high bid activity in our key markets, so we remain optimistic about our growth prospects,” adds Jeppe Raaholt.
Earnings before tax was NOK 23 million (H1: 13.8) in the second quarter this year. Cash flow from operating activities was NOK 83.2 million in this year’s second quarter (H1: 153.3), giving testament to solid cash conversion so far in 2024.
BUSINESS SEGMENT UPDATE
Endúr’s Marine Infrastructure segment delivered revenue of NOK 517.0 million in the second quarter, up one percent from the same period last year (Q2 2023: 510.2). The EBITDA result of NOK 89.3 million was a 16 percent improvement on last year (Q2 2023: 77.3), resulting in an EBITDA margin of 17.3 percent (Q2 2023: 15.2%). The Marine Infrastructure order backlog grew by 7 percent during the second quarter.
“We said in our first quarter presentation that we expected margins to improve as we moved into the summer months. We are pleased to deliver on this,” says Jeppe Raaholt.
Revenue in the Aquaculture Solutions segment was NOK 103.9 million (Q2 2023: 127.2), which primarily comprise feed barge production and planning/design and construction for Eide Smolt. EBITDA ended at NOK 5.3 million (Q2 2023: 3.2), with a margin of 5.1 percent (Q2 2023: 5.7). Aquaculture Solutions’ order backlog grew by close to NOK 1 billion, to NOK 1.25 billion, in the second quarter as FID was made on Salmon Evolution phase 2, where Artec Aqua will deliver its hybrid technology.
In the business segment “Other”, Endúr Maritime delivered revenue of NOK 71.5 million (Q2 2023: 76.9), with EBITDA of NOK 6.8 million (Q2 2023: 8.7), equivalent to an EBITDA margin of 9.6 percent (Q2 2023: 11.3%).
OUTLOOK
Endúr is experiencing a strong and growing backlog for all business segments. Further, the group has several outstanding bids and is experiencing high tender activity. Future activity level is supported by the new Norwegian Transport Plan for 2025-2036 which favors rehabilitation, smaller projects and aquaculture, a number of major infrastructure projects in Sweden, and increased defense budgets.
Within Aquaculture Solutions, the long-term outlook for land-based fish farming remains attractive, with the awaited FID for Salmon Evolution phase 1 representing an important milestone for the group.
Endúr reiterates its expectation of significant revenue growth throughout 2025, and targets annualized revenue of NOK 4 billion by the end of 2025.
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/20240822_13/
The second quarter results presentation and half-year financial report are available here: 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 22 August 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
