Third quarter results 2023

Eqva ASA (OSE: EQVA) reports a strong development in the Products, Solutions & Renewables segment, and divests its shipyard Havyard Leirvik.

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In the first nine months of 2023, the group reported an operating income of NOK 579 million, an increase of NOK 127 million from 2022 (NOK 452 million). EBITDA was NOK 8.8 million.

The operating income for Eqva, excluding Havyard Leirvik, was NOK 472 million with an EBITDA of NOK 22.5 million, calculated on a pro forma basis.

The Products, Solutions & Renewable segment capitalizes on a strong order book of NOK 504 million, leading to increased activity and improved margins. YTD segment revenue reached NOK 472 million, up from NOK 276 million in the same period last year. With growth leveraging current cost levels, the EBITDA margin increased to 6.9 %, compared to 3.4 % last year.

For the Maritime Services segment, the negative trend in the service- and maintenance market continued from Q2 through Q3. Following the sale of Havyard Leirvik, Maritime Services will no longer be a reporting segment for Eqva going forward.

"We are proud of 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,” says CEO, Erik Høyvik.

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Eqva divests Havyard Leirvik and reaffirms strategic direction

On 13 November, Eqva entered into a sales agreement with Tersan Shipyard to divest its shipyard Havyard Leirvik. Tersan Shipyard is a leading global shipbuilder located in Turkey, which has a clear ambition to further strengthen its position in Northern Europe, with Havyard Leirvik as steppingstone.

Tersan is buying all shares in Havyard Leirvik Holding AS, including its subsidiaries Havyard Leirvik AS and Havyard Leirvik Eiendom AS. The transaction is settled by NOK 30 million in cash. The profit from the share sale will be booked as financial income in Eqva‘s accounts, with effect in Q4 2023.

The transaction allows Eqva to concentrate on further development of its portfolio companies BKS and Fossberg Kraft. Additionally, as an investment company and active owner, Eqva will be targeting new investment opportunities that contribute to the green transition in maritime, power intensive and renewable industries.

Outlook

Eqva’s robust order book bodes well for the last quarter of 2023 and into 2024, with sustained high activity expected in the Products, Services & Renewables segment. Additionally, the group will continue to seek new M&A opportunities.

A presentation of the results will be held by CEO Erik Høyvik and interim CFO Ask Haukaas, alongside the Chair of the Board Even Matre Ellingsen, today. The presentation will be available on the company’s web site www.eqva.no and https://vimeo.com/webinars/eve... from 09:00 CET.