Eqva ASA

Earnings Release • Nov 26, 2020

Q3 2020 report

Q3 2020 report

Havyard Group ASA (OSE: HYARD) reports today the unaudited results for the third quarter 2020 according to the attached report.

HIGHLIGHTS:

* Net profit of NOK 42 million and earnings per share (EPS) of NOK 1.74 for the third quarter 2020, and net profit of NOK 18 million and EPS of NOK 0.64 year to date 2020

* EBITDA of NOK 19 million for the third quarter 2020 and NOK 93 million year to date 2020

* EBIT of NOK 9 million for the third quarter 2020 and NOK 63 million year to date 2020

* The group's operating profit (EBIT) indicates that the project development at the shipyard is under control, despite the Covid 19 outbreak among own employees and employees at sub-contractors.

EVENTS AFTER THE BALANCE SHEET DATE:

* Havyard has established a company for hydrogen-powered ships. Havyard’s complete hydrogen system for ships will be completed in 2021, and the company (Havyard Hydrogen) is established to meet market demand for the solution, which will make it possible also for large ships to sail longer distances with zero emissions.

* Norwegian Greentech AS (NGT) has signed its biggest deal to date in the form of a fleet contract with the Norwegian shipping company Wilson ASA. The agreement means that NGT will deliver ballast water treatment systems for all ships owned by Wilson, primarily during the period 2020–2024. Wilson is one of the biggest cargo shipping companies in Europe in its segment, and the biggest in Norway by far. The fleet currently comprises 120 ships.

FINANCIAL UPDATE:

The Group were in breach of their covenants as of 3 quarter 2020, long-term interest bearing bank loans are therefore reclassified to short-term. In September, we agreed on postponing the maturity of the Bond Loan until December 2020 and postponing the repayment of loans to DNB. It is an ongoing process for further postponement.

As part of the process to strengthen the financial position of the Company and to unlock values in the group, the Company is considering to spin-off its ownership in the subsidiaries Havyard Design & Solutions, Norwegian Electric Systems, Norwegian Greentech and Havyard Hydrogen in a separate maritime cleantech concern to be listed on Euronext Growth.

The Company see significant market opportunities for these businesses going forward and believe a stand-alone and focused concern will be well positioned to take a leading position in the maritime green shift.

The Company is in discussions with its secured lenders to facilitate such a spin-off and has received approval in principle for the proposed re-organisation of the business. It is envisaged that completion of such a re-organisation, if finally decided and approved by the stakeholders, will be in Q1’2021. Havyard Group ASA will retain a majority ownership stake in the new company.

For further information, please contact:

Gunnar Larsen, CEO +47 90 10 56 94

Erik Høyvik, CFO +47 91 68 31 73