Nekkar — Earnings Release 2021

Aug 26, 2021

Nekkar ASA: second quarter and half-year 2021 interim financial results

Nekkar ASA: second quarter and half-year 2021 interim financial results

26.8.2021 07:00:00 CEST | Nekkar ASA | Half yearly financial reports and audit

reports / limited reviews

26 August 2021 - Nekkar ASA (Nekkar) reported revenues of NOK 121.8 million in

this year's second quarter, an increase of 91 percent from the same quarter last

year (Q2 2020: NOK 63.8 million). Operational EBITDA was NOK 39.2 million

(14.6), equivalent to an operational EBITDA-margin of 32.2 percent (22.9%).

"Nekkar delivered extraordinary strong financial results in the second quarter,

impacted by successful commissioning of three projects, with associated margin

recognition and realization of project cost savings, within our Shipyard

Solutions business area. Although the Covid-19 pandemic has presented several

operational challenges to both the Shipyard Solutions and Digital Solutions

business areas, they have retained the ability to deliver on time and on budget

- as demonstrated this quarter," says Preben Liltved, CEO of Nekkar.

Order intake in the quarter was zero (428), but the company has a healthy

2-3-year backlog of NOK 975 million as of 30 June 2021 (1,110), of which almost

everything is related to the Shipyard Solutions business area.

"The Shipyard Solutions business area has not lost any tenders in the second

quarter, but there has simply not been awarded any newbuild projects. The

pandemic has caused delays on contract awards, but we are bidding for projects

and hope to see newbuild contracts being awarded in the second half of 2021,"

adds Liltved.

Nekkar has also identified growth in service revenue from its substantial

installed base of docking facilities as a key focus area going forward.

Subsequent to the second quarter, Nekkar's Shipyard Solutions has signed three

upgrade and spare part orders worth a total of NOK 41 million.

"Such contracts prove the significant upside potential in our current installed

base, which we until 2019 have not seriously attempted to tap into," says

Liltved.

Solid progress on aquaculture and renewables projects

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

automation, and digitalisation competence and heritage from "Drilling bay" in

Kristiansand, Norway, which is found in the company's Digital Solutions business

area. 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.

In the second quarter, the majority of resources in the Digital Solutions

business area were allocated to projects in Shipyard Solutions, and for software

development for both the Starfish and SkyWalker development projects.

Testing of Nekkar's downscaled Starfish, a closed cage for fish farming, has

been ongoing in the second quarter and will continue for the rest of 2021. The

testing has so far proven that the physical properties for the cage withstand

environmental impacts. In the third quarter Nekkar will continue to test the

circulation systems, waste handling, and sensors. Further, Nekkar has started

production of a full-size Starfish for testing early 2022 as interest in

Starfish from potential customers remains very high.

In May, Nekkar first presented its SkyWalker wind turbine installation tool to

the market. This is a disruptive installation technology that could

significantly reduce the cost and environmental footprint associated with wind

turbine installations. The solution uses active heave compensation software

derived from offshore lifting systems combined with digital solutions that allow

for remote-controlled and automated solutions.

"Progress on Skywalker remains good. The design process is ongoing, and

production of the downscaled test model will be completed early in the fourth

quarter. The downscaled model will be used for testing in wind tunnel along with

comprehensive testing of the control system in the latter part of the fourth

quarter," says Preben Liltved.

Nekkar reported revenues of NOK 121.8 million in the second quarter 2021, up

from NOK 63.8 million in the same quarter last year. The company's operational

EBITDA was NOK 39.2 million (14.6), equivalent to an operational EBITDA-margin

of 32.2 percent (22.9%). Operational EBITDA excludes losses/gain on foreign

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

38.3 million, up from NOK 26.5 million in the second quarter last year. EBIT

ended at NOK 37.4 million in this year's second quarter, representing a 45

percent increase from the same quarter last year (25.8).

Presentation at 08:00 am today

The second quarter and half-year 2021 financial report, as well as a

presentation of the results, are enclosed to this announcement.

Nekkar ASA will hold financial results presentation today at 08:00 CET. The

webcast presentation can be followed from the following URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20210826_2/

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

Nekkar ASA Financial Statement Q2_2021.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/799/1041/Nekkar%20ASA%20Financial

%20Statement%20Q2_2021.pdf

NEKKAR ASA Presentation Q2 H1 2021.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/799/1042/NEKKAR%20ASA%20Presentat

ion%20Q2%20H1%202021.pdf