Integrated Wind Solutions ASA

Earnings Release • May 31, 2024

Integrated Wind Solutions ASA Q1 2024 Financial Report & Presentation

Integrated Wind Solutions ASA Q1 2024 Financial Report & Presentation

Integrated Wind Solutions ASA (“IWS”) has today published its Q1 2024 Financial Report and Presentation.

HIGHLIGHTS

•Total revenue of EUR 5.4m for Q1 2024, a 16% reduction from Q4 2023 and a 7% reduction compared with Q1 2023.

•IWS Services revenue of EUR 4.6m in Q1 2024, a decrease of 24% from Q4 2023, due to the nature of the project-driven construction business. However, the backlog remains strong, and the full year guidance remains unchanged.

•PEAK Wind continues its strong growth with an increase in net revenue for Q1 by 23% compared with Q1 2023. The Group’s share of the net profit in Q1 2024 was EUR 0.3m, before EUR -0.1m amortisation of acquisition-related intangible assets.

•Group EBITDA of EUR -3.2m for Q1 2024 compared with EUR -0.2m in Q4 2023 and EUR -1.0m in Q1 2023. The result was impacted by the project-driven construction business and activities in the quarter prior to vessel operations from Q2 onward.

•IWS Fleet took delivery of IWS Windwalker on 26 March. The vessel arrived in Denmark on 25 May and is undergoing final quayside preparations before commencing its charter contract with TenneT TSO in June.

•IWS Skywalker started its first charter contract at the Dogger Bank Wind Farm on 31 March and has commercially performed to our full satisfaction up to the date of this report.

•IWS Fleet has on 2 February entered a three-year frame term agreement starting in 2025 with Siemens Gamesa Renewable Energy A/S - the minimum commitment covers about 1,300 days with a revenue backlog of EUR 51-55m. The first charter contract under the frame term agreement was signed on 25 March.

•IWS Fleet has on 20 February entered a time charter contract at market terms for a minimum of 4 months that will start in June with TenneT TSO B.V., a leading European Transmission System Operator owned by the Dutch government.

•IWS announced on 27 May that it has entered a strategic partnership with Sumitomo Corporation (“Sumitomo”). IWS Fleet AS will raise EUR 60 million in equity by issuing new shares to Sumitomo based on a pre-money valuation of EUR 176 million. Upon completion of the transaction, Sumitomo will own 25.38% of IWS Fleet AS, with Integrated Wind Solutions ASA continuing to own the remaining shares. In partnership with Sumitomo, we are looking forward to continuing to build IWS Fleet and exploring further expansion opportunities.

Lars-Henrik Røren, CEO, commented: “We leave an eventful first quarter behind with our first newbuilding, IWS Skywalker, having commenced operation at Dogger Bank Wind Farm, and the successful delivery of the IWS Windwalker with subsequent mobilisation to Europe. We are pleased to see our focus on growth and financing initiatives result in the strategic partnership agreement with the Japanese integrated trading company Sumitomo Corporation. IWS Services experienced a soft Q1; although the project-driven business model will experience quarterly earnings fluctuations, we have initiated strategic measures to improve profitability. We also keep our 2024 guidance unchanged, with a record year in terms of revenues backed by firm orders. IWS is now on a solid business- and financial track, and we are continuously exploring further growth of the Group.” 

Company contacts:

Lars-Henrik Røren

CEO Integrated Wind Solutions

Phone: +47 98 22 85 06

E-mail: lhr@integratedwind.com

Marius Magelie

CFO Integrated Wind Solutions

Phone: +47 920 27 419

E-mail: mm@integratedwind.com

About:

Integrated Wind Solutions ASA offers a fleet of state-of-the-art service vessels to the offshore wind industry combined with a suite of adhering services to reduce the levelised cost of energy (“LCOE”) for offshore wind. The Company has two Commissioning Service Operation Vessels (“CSOV”) delivered and four CSOVs under construction with delivery in 2024 and 2025. Furthermore, IWS owns the offshore wind supply-chain service company, IWS Services A/S and has a 30% ownership in the independent advisor, consultancy, data intelligence and wind farm operator firm PEAK Wind Group.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.