Nekkar ASA: Second quarter and half-year 2024 financial results
22 August 2024 – Nekkar ASA (Nekkar) delivered revenue of NOK 150 million in this year’s second quarter, up 13 percent from the same quarter last year (132). EBITDA was NOK 20 million (25), equivalent to a margin of 13.4 percent (18.6%). Net cash flow in the quarter was NOK 30 million (42). Further, Nekkar has announced several portfolio value transactions in the second quarter and subsequent months.
“Our revenue level and cash generation were good this quarter, while our EBITDA was slightly lower due to differences in project mix and some expected margin dilution from market entry projects in Techano Oceanlift. We are largely a project-driven organization which means that quarterly fluctuations will occur, but the fundamentals of our business remain strong and we expect our margins in the coming quarters to reflect this,” says Ole Falk Hansen, CEO of Nekkar.
Nekkar’s order backlog stood at NOK 725 million (864) at the end of the second quarter. The order backlog provides good visibility for both 2024 and 2025. After two quarters with high order intake, no major orders were awarded in the second quarter resulting in an order intake of NOK 15 million (148).
“We are experiencing high tender activity in all our business segments as our portfolio companies are exposed to high investment levels in offshore energy, maritime and naval industries. We therefore retain a positive outlook,” adds Ole Falk Hansen.
Nekkar’s balance sheet remains strong with NOK 227 million in cash as of 30 June 2024, no interest-bearing debt, and an undrawn NOK 200 million credit facility.
A ROBUST AND MORE DIVERSIFIED NEKKAR
Active use of M&A is a key component in Nekkar’s strategy to create a more robust, diversified and profitable group. Just over one year ago, Nekkar consisted of one mature company (Syncrolift), one growth company (Intellilift) and two innovation projects (SkyWalker and Starfish). Since then, Nekkar has added growth companies Techano Oceanlift, FiiZK and – subsequent to the end of the second quarter – Globetech to its portfolio.
In July, Nekkar entered into an agreement to acquire 67 percent of the shares of fast-growing and profitable maritime connectivity and digital service provider Globetech AS. In 2027, Nekkar will acquire the remaining 33 percent of outstanding shares in Globetech.
Moreover, portfolio company FiiZK, where Nekkar holds a 39 percent ownership share, has during the summer signed agreements to divest both FiiZK Digital and majority of FiiZK Protection. The sales are part of a streamlining that will see FiiZK focus on unconventional farming methods including closed and semi-closed cages for fish farming. Both transactions are expected to be completed in the third quarter 2024.
“We have significantly expanded Nekkar’s portfolio and earnings potential during the past 12-18 months, without incurring any interest-bearing debt. I believe this demonstrates our ability to identify and execute interesting acquisitions,” says Falk Hansen.
BUSINESS SEGMENT UPDATE
Nekkar’s most mature business, Syncrolift, which is the world’s leading supplier of shiplifts and ship transfer systems, delivered revenue of NOK 124 million (118) in this year’s second quarter. Techano Oceanlift had revenue of NOK 19 million (7) but with softer margins on its market entry projects. Intellilift delivered revenue of NOK 11 million (9).
Nekkar’s associated company, FiiZK, which is not consolidated into Nekkar’s financial accounts, was profitable in the second quarter of 2024 as a result of restructuring of the operations.
PRESENTATION AT 08:00 AM TODAY
Nekkar will hold a live webcast presentation today at 08:00 CET. The presentation can be viewed from this URL: https://channel.royalcast.com/landingpage/hegnarmedia/20240822_2/
The presentation material and the half-year financial report are enclosed to this announcement.
LUNCH PRESENTATION IN OSLO
In addition, Nekkar will hold a physical presentation at 12:00 (CET) today at Pareto Securities AS, Dronning Mauds gate 3, 0250 Oslo. Attendees can register their attendance with events.no@paretosec.com.
Disclosure regulation
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
Contacts
- Ole Falk Hansen, CEO, +47 988 14 184, ir@nekkar.com
About Nekkar ASA
Nekkar (OSE: NKR) is an industrial technology group offering impact technologies combined with high-end software solutions. The group combines 50 years' heritage from the world's number one shiplift company, Syncrolift, with new investments into sustainable, digitalised technology businesses that aim to unlock growth within ocean-based industries such as offshore energy, renewables and aquaculture.