Eqva ASA

Earnings Release • Aug 31, 2022

Havyard Group ASA | First half-year results 2022

Havyard Group ASA | First half-year results 2022

Fosnavåg, 31 August 2022: The combination of Havyard Group ASA and HG Group AS was successfully completed in June 2022. The new, combined group reported revenue of NOK 327 million on a pro forma basis for the first six months of the year and a solid financial position with an equity of 48% at the end of June. Havyard reiterates its guidance of NOK 550-600 million in revenue and an operational EBITDA margin of 5-6%.

The acquisition of HG Group AS marks an important milestone in the process to develop Havyard as a fully integrated supplier of in-demand services and solutions to maritime, power intensive and renewable industries.

In 2022, the group has continued to shift its shipyard activities from newbuilding to conversions, repairs, and maintenance. With the change in strategy the revenue base has become less volatile and more resilient to market cycles.

As a result of the strategic shift from newbuilding to services, group revenues and EBITDA showed a decline compared to the same period of 2021. Group EBITDA for the period of NOK 2.1 million (pro forma) was impacted by transaction and restructuring costs of NOK 10 million as well as temporary post-covid related absence and changes to some customer projects, which were postponed until later in 2022.

Supported by a strong order backlog for the combined group of NOK 253 million and a positive market outlook, guidance stands firm. For the full-year 2022, the company targets revenue in the range of NOK 550-600 million with an operational EBITDA margin in the range of 5-6 per cent, and for 2023 Havyard targets revenue of NOK 650-750 million and a further improvement of the EBITDA margin to 7-8 per cent.

“During 2022, we have successfully completed a transformative transaction and repositioned the Havyard Group to capitalise on strong macro trends. We have built a resilient group of businesses, which enable new paths to growth and a potential for collaboration and synergies across the companies. Our solid financial position makes us well equipped to capture opportunities in M&A going forward,” says CEO Erik Høyvik.

“The combined group contributes to the green transition by helping customers to minimise their environmental impact and to secure energy-efficient solutions, and the long-term fundamentals for our business are strong,” Høyvik concludes.

Please find enclosed the interim report for the first half-year (consolidated figures as reported) and the presentation material (pro forma figures). HG Group AS is included in the financial position as of 30 June 2022. HG Group AS will be fully consolidated into the financial statements as from 1 July 2022. The enclosed presentation material includes unaudited pro forma figures for the new, combined group.

A presentation of the results will be held by CEO Erik Høyvik and CFO Eirik Sævareid. The presentation will be available on the company’s web site www.havyard.com and https://vimeo.com/webinars/events/5f829a40-7081-44ad-b521-4d222c00ef5e from 09:00 CEST.

For more information, please contact:

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

Eirik Sævareid, Chief Financial Officer: +47 992 74 637

Havyard Group ASA in brief

Havyard Group 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. It aims to become a fully integrated service and maintenance supplier for the Norwegian landbased and maritime industry.

The group has a well-diversified product and market portfolio, and further growth will be established through a combination of company-based development and utilisation of synergies between the companies in the group.

Key companies in the group are Havyard Leirvik, BKS Industri and Fossberg Kraft, which are all highly respected and appreciated by their respective customers and partners.

Read more on www.havyard.com

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Carina Ernstsen, Marketing Manager at Havyard Group ASA, on 31 August 2022 at 07:00 CEST.