Nekkar — Earnings Release 2021

Nov 25, 2021

Nekkar ASA: third quarter 2021 interim financial results

Nekkar ASA: third quarter 2021 interim financial results

25.11.2021 07:00:00 CET | Nekkar ASA | Additional regulated information required

to be disclosed under the laws of a member state

25 November 2021 - Nekkar ASA (Nekkar) reported revenues of NOK 128 million in

the third quarter, an increase of 30 percent from the same quarter last year (Q3

2020: NOK 98 million). Operational EBITDA was NOK 39 million, an increase of 179

percent from the same quarter last year (NOK 14 million), equivalent to an

operational EBITDA-margin of 30.9 percent (13.8%). The group's order backlog

stood at a healthy NOK 948 million at the end of the quarter.

"Nekkar delivered another strong quarter, continuing the trend we have seen in

2021. Year-to-date our revenues are up 50 percent versus the same period last

year, and our operational EBITDA result has almost trebled in the same period.

The numbers reflect continued solid project execution in our Shipyard Solutions

business area," says Preben Liltved, CEO of Nekkar.

Order intake in the quarter was NOK 69 million (264), of which the majority was

related to service and upgrade awards, plus one smaller newbuild contract in the

Shipyard Solutions business area. At the end of the third quarter, Nekkar's

order backlog stood at NOK 948 million (NOK 1,297 million), which is marginally

down from NOK 975 million at the end of the second quarter 2021.

"We are very pleased to see that our efforts to grow our lifecycle services are

yielding results. We have a global installed base of more than 200 shiplifts but

have not until this year tapped properly into this market, which represents

significant growth potential for Nekkar. Moreover, we are starting to see

positive signs in the global newbuilding market, where Covid-19 has put contract

awards on hold for a long time," says Preben Liltved.

Nekkar reported revenues of NOK 128 million in the third quarter 2021, up from

NOK 98 million in the same quarter last year. The company's operational EBITDA

was NOK 39 million (NOK 14 million), equivalent to an operational EBITDA-margin

of 30.9 percent (13.8%). Operational EBITDA excludes losses/gain on foreign

exchange contracts not qualifying for hedge accounting. Reported EBITDA was NOK

37 million, up from NOK 14 million in the third quarter last year. EBIT ended at

NOK 36 million in this year's third quarter, an increase from NOK 14 million in

the same quarter last year. Nekkar had no interest-bearing debt at the end of

the third quarter.

STARFISH AND SKYWALKER PROGRESSING AS PLANNED

The foundation of Nekkar's business is superior engineering, electrification,

automation, and digitalisation competence. Nekkar applies this competence as

levers to develop disruptive technologies that can make high-growth industry

sectors - such as aquaculture and renewable energy - even more sustainable,

productive, and profitable.

Nekkar is currently involved with two such impact technology development

projects: The Starfish closed fish cage and the SkyWalker wind turbine

installation solution. Both projects have progressed as planned during the third

quarter.

Starfish's full-scale circulation system has been successfully tested during the

third quarter, with tests still ongoing. Nekkar is also currently testing the

filtering system, which is showing promising results based on the initial test

results. The plan is to build a full-scale Starfish fish cage in 2022.

During the third quarter, Nekkar completed the development of a 1:20 model of

the SkyWalker wind turbine installation tool. This is a disruptive installation

technology that could significantly reduce the cost and environmental footprint

associated with wind turbine installations. Final assembly with electronics and

software testing will be conducted until the first quarter 2022.

"Interest level in Starfish and SkyWalker remains very high. Solid progress and

positive test results help to fuel further interest in both technologies," says

Preben Liltved.

INTELIWELL JOINT VENTURE

Subsequent to the third quarter, Nekkar's subsidiary company, Intellilift AS,

established a joint venture company (JV), named Inteliwell, together with a

subsidiary of Transocean Inc. for the purpose of commercialising software-based

products and services enabling digital well construction. The solutions will

also be available for third parties in the industry and are currently being

developed in cooperation between the JV partners. Intellilift will hold a 33.33

percent ownership in Inteliwell.

Inteliwell's digital well construction solution will integrate digital systems

for well construction, drilling control and real-time data monitoring. The

software solution interfaces with the drilling rig's control system to

autonomously execute tasks outlined in the well plan, serving to expedite the

well construction process.

"The JV's intention is to package software technology into Inteliwell and offer

a complete solution to rig operators and oil companies. This creates a great

foundation for Intellilift to generate platform fees and SaaS revenues," says

Preben Liltved.

PRESENTATION AT 08:00 AM TODAY

The third quarter business update presentation is enclosed to this announcement.

Nekkar ASA will hold a live webcast presentation today at 08:00 CET. The webcast

presentation can be followed from the following URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20211125_7/

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Preben Liltved, CEO, +47 480 62 691, IR@Nekkar.com

ABOUT NEKKAR ASA

Nekkar (OSE: NKR) is an industrial technology group offering impact technologies

combined with high-end software solutions. The group combines 50 years' heritage

from the world's number one shiplift company, Syncrolift, with new investments

into sustainable, digitalised technology businesses that aim to unlock growth

within ocean-based industries such as offshore energy and renewables and

aquaculture.

ATTACHMENTS

Q3 2021 Nekkar ASA Operational Update.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/1019/1354/Q3%202021%20Nekkar%20AS

A%20Operational%20Update.pdf