Eqva ASA

Earnings Release • Feb 28, 2024

Eqva ASA: Fourth quarter results 2023

Eqva ASA: Fourth quarter results 2023

28 February 2024: Eqva ASA (OSE: EQVA) ended 2023 on a strong note, with a solid fourth quarter showing continued progress in the Products, Solutions & Renewables segment. The successful divestment of the shipyard Havyard Leirvik, further reaffirms the group’s strategic direction to be an active owner of industrial service companies.

For the full year 2023, Eqva reported an operating income, excluding discontinued operations, of NOKm 687 (pro forma 2022: NOKm 394) with an adjusted EBITDA of NOKm 42 (pro forma 2022: NOKm 3.3). Revenues were up 75% from last year, and EBITDA margin strengthened from 0.8% to 6.1%.

Products, Solutions & Renewables delivered another strong quarter, which lead to a full year EBITDA margin of 5.6%. Excluding non-recurring effects of total NOKm 13 and a management fee of NOKm 8, the segment delivered an adjusted EBITDA of NOKm 59.2, representing an adjusted EBITDA margin of 8.6%.

The orderbook at the end of the fourth quarter was NOKm 487 (2022: NOKm 300). With this as a foundation, the group expects robust order intake and a high activity level throughout 2024.

“Eqva delivered another solid quarter thanks to our broad portfolio with diversified revenue streams, strong client relationships and our dedicated staff’s hard work. Throughout 2023, we have seen increased activity on key projects in Products, Solutions & Renewables, resulting in notable volume and margin growth,” says CEO Erik Høyvik.

Key strategic milestones

Several strategic events stood out in the fourth quarter 2023. First of all, Eqva divested its shipyard Havyard Leirvik. With this transaction completed, Eqva will now strengthen its efforts to continue the development of BKS and Fossberg Kraft. Additionally, it frees up resources to pursue new investment opportunities that contribute to the green transition in maritime, power-intensive, and renewable industries.

Also in the fourth quarter, Eqva announced a letter of intent to acquire and combine LOS Gruppen with BKS, with the aim to take a leading market position as a full-service supplier for technical installations in maritime-, offshore and land-based industries. The process towards final agreement is progressing as planned, with closing expected in the beginning of second quarter 2024. The closing of the acquisition of Kvinnherad Elektro, announced earlier in 2023, is also expected in the second quarter.

Outlook

The increased inflation, higher interest rates and market uncertainties continue to influence Eqva’s markets, but the company has a positive outlook for the year. Eqva benefits from its flexibility, its diversified mix of services, and strong customer relationship in Norway. Most demand comes from key customers closely linked to Eqva’s portfolio companies, reducing its exposure to short-term cyclicality in the general economy.

Eqva expects revenues for 2024 to be in the range of NOK 600-700 million with an EBITDA margin in the range of 5-7%. With planned M&A activities included, revenues are expected to increase to NOK 1.2-1.4 billion on a full-year basis, with similar EBITDA range.

A presentation of the results will be held by CEO Erik Høyvik, CFO Petter Sørdahl. The presentation will be available on the company’s web site www.eqva.no and https://vimeo.com/event/4110756 from 09:00 CET.

For more information, please contact:

Erik Høyvik, Chief Executive Officer: +47 916 83 173

Petter Sørdahl, Chief Financial Officer: +47 917 56 147

Even Matre Ellingsen, Chairman of the Board: + 47 990 05 500

Eqva ASA in brief

Eqva ASA is a knowledge-based active owner of engineering, construction and service companies that contribute to the green transition in maritime, power intensive and renewable industries.

The group has a well-diversified product and market portfolio, and further growth will be established through a combination of company-based development, utilization of synergies between the companies in the group as well as value-creating M&A activities.

Key companies in the group are BKS and Fossberg Kraft, each building on decades of experience and widely recognized by clients in a broad range of industries.

Read more on www.eqva.no

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