Eqva ASA | Third quarter results 2022

Fosnavåg, 16 November 2022: During the third quarter, Eqva (formerly Havyard Group ASA) made significant strategic progress towards becoming a fully integrated service and maintenance supplier for the Norwegian land-based and maritime industry. The group’s new name reflects the new strategic direction. Further steps have been taken in the fourth quarter, such as initiating a process to establish a separate real estate division, with the aim of achieving better visibility of substantial underlying value of these assets.

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Eqva reported revenues of NOK 125.2 million and an adjusted EBITDA* of negative NOK 1.1 million in the third quarter 2022. Pro forma year to date revenue and adjusted EBITDA* was NOK 452 million and NOK 12 million, respectively.

Eqva has delivered solid operational performance in its two segments so far this year, partly offset by general overhead cost at group level. Maritime Services, which consists of the company Havyard Leirvik, reported an EBITDA result of NOK 8.4 million year to date (pro forma). The EBITDA year to date for the segment Products, Solutions & Renewables, consisting of the companies BKS and Fossberg Kraft, is at NOK 9.4 million (pro forma).

The company’s strategic shift in its maritime segment from newbuilding’s to service and maintenance means that key financials are not directly comparable to previous years. The acquisition of HG Group was completed in June 2022 and is reflected in the financial statements as from 1 July 2022.

“The strategic shift in Maritime Services has resulted in a revenue base which is less volatile and more resilient to market cycles. With the current geopolitical uncertainty and macroeconomic outlook, this strategy has served us well. Nevertheless, we have seen some projects in our pipeline being put on hold and delayed due to the turbulent times”, said Erik Høyvik, CEO of Eqva.

The segment Maritime Services has been hit by the general market uncertainty in the maritime sector, but still delivered a quarter with solid underlying operational performance. One of the key projects in the third quarter was a large ferry electrification project, which is expected to be completed in the beginning of 2023.

The segment Products, Solutions & Renewables delivered a quarter with solid operational performance, despite some delayed projects and inflationary pressure on input factors. One of the key projects in the quarter was BKS’ deliveries to a new, innovative hydrogen fuel cell project on the west coast of Norway. The company expects to see an even higher activity level and order intake in this segment in the fourth quarter and 2023.

“Despite market headwinds, we made good progress in our projects during the quarter and delivered solid operational performance in both segments. We are confident that our commitment to strong partnerships with key customers and our deep market knowledge will create growth opportunities going forward and we are well positioned towards key macro drivers”, said Erik Høyvik, CEO of Eqva.