Second quarter and first half year results 2023

Fosnavåg, 25 August 2023: Eqva ASA (OSE: EQVA) reports a solid first half of the year, driven by strong operational achievements, significant volume increase, and key contract wins.

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In the first half of 2023, the group reported an operating income of NOK 427 million and an EBITDA of NOK 12.1 million. These figures represent an increase from the corresponding period last year, mainly due to significantly higher activity and margin improvements in the Products, Solutions & Renewable segment. In 2022, the operating revenue was NOK 327 million and EBITDA was NOK 2.1 million, calculated on a pro forma basis. "We are proud of both the progress made and our staff’s performance in challenging markets. In Products, Solutions & Renewables, we have increased activity on key projects, driving notable volume and margin growth. In Maritime Services segment, we have completed several projects, and succeeded with adapting to challenging markets by launching cost-saving initiatives. These initiatives have positioned Maritime Services for a market recovery,” says CEO, Erik Høyvik.

Strategic update
During the first half of 2023, the group made several important decisions to position Eqva for continued growth. A letter of intent for a business combination with Kvinnherad Elektro AS has been signed, encompassing both Kvinnherad Elektro’s operations and its 51 per cent ownership in Vassnes Solution AS. With this business combination, Eqva will become a leading supplier of engineering, welding, power, and automation services on the west coast of Norway. Eqva estimates a combined annual revenue potential of approximately NOK 1 billion, incorporating identified synergy opportunities and growth potential.

In the end of the second quarter, a strategic review of Maritime Services was initiated. Given the business’ position in the Norwegian maritime sector and the potential to capitalise on the ongoing challenging market conditions, the Board has chosen to explore various strategic alternatives, including consolidation or divestment of this segment. The strategic review process is expected to be completed within the next 6 – 12 months.

Outlook
Eqva’s robust order book bodes well for the second half of 2023, and the group expects to sustain high activity, particularly for Products, Services & Renewables. Additionally, the group will continue to seek new M&A opportunities.
“In times of turbulence, opportunities arise for leading players with sustainable business models like Eqva. We maintain a positive outlook for the future and will continue to focus on expanding our capabilities, driving long-term growth, and delivering values” CEO Erik Høyvik, added.