Eqva ASA

Regulatory Filings • Mar 7, 2022

Large conversion contract for the yard

Large conversion contract for the yard

The subsidiary Havyard Leirvik AS has signed a contract for electrification of the ferry «MF Ibestad» for the ferry company Norled. The ferry will be converted to electric operation with hybrid capacity and will enter the Svensby-Breivikeidet connection over Ullsfjorden in Troms.

In line with the green shift, MF Ibestad must be rebuilt from diesel-mechanical propulsion to electric propulsion with battery and charging from land. It must also be able to run with diesel generators over longer distances where it is not possible to charge from land. The system will be delivered by SEAM, and the start of the project at the yard is set for 01.08.2022. Battery rooms will be built, and the current two diesel engines will be replaced by electric motors for propeller operation.

The contract is important, and supports the yard's position as a strong player in the shipbuilding industry for hybridization and conversion. Havyard Leirvik already has a long tradition of delivering well on newbuildings and has also delivered 13 newbuildings with hybrid solutions. With this, the basis is present for delivering well also on this type of assignment.

According to sales manager, Silje Smådal, there is now a good increase in demand for both dock and quay work at the yard, but also for larger projects with a longer time perspective.

- It is gratifying that we have managed to maintain the status of a good newbuilding yard, at the same time as we have established ourselves in the service and conversion market. We see that our services are becoming important in the green shift, and with our history in electrification, we have good experiences to build on. For us, this contract is yet another confirmation that we have the right expertise present, says Smådal.

- It is very gratifying that Norled has chosen Havyard Leirvik as the yard for hybridization of MF Ibestad. We depend on good and demanding customers to develop us. Norled has been a customer with us for service and maintenance, and has given us impulses that have helped to develop the yard in this market. We are therefore looking forward to a major project together, says CEO, Tor Leif Mongstad.

Furthermore, Mongstad says that we are incredibly happy to be able to report to our skilled employees that we have entered into a contract that provides work for the rest of the year. The yard is in a good trend with several orders for service and maintenance, and with two major projects in the order book, we have secured more than half of the budgeted production in just two months.

Havyard Leirvik is a cornerstone company in its area and many have close connections to the yard either by being directly employed or through other family or professional relationships. It is therefore important to create security for the activity and show that we are competitive in a demanding market.

About Havyard Leirvik | www.havyardleirvik.no

Havyard Leirvik AS has been in operation since 1918, and has extensive knowledge in the delivery of newbuildings regardless of design, equipment, repairs and conversion of vessels. By having solid project management and quality assurance systems, flexibility and highly qualified people, the yard delivers advanced vessels with top quality.

For further information please contact:

Tor Leif Mongstad (Managing Director)

Mobile: +47 900 48 483

Silje Smådal (Sales Manager)

Mobile: +47 991 60 114

This stock exchange announcement was published by Daniel Kopperstad, Head of Legal Affairs in Havyard Group ASA, at 12:59, 7 March 2022.