Nekkar — Earnings Release 2022

Aug 30, 2022

Nekkar ASA: second quarter and half-year 2022 financial results

Nekkar ASA: second quarter and half-year 2022 financial results

30.8.2022 07:00:00 CEST | Nekkar ASA | Half yearly financial reports and audit

reports / limited reviews

30 August 2022 - Nekkar ASA (Nekkar) reported revenue of NOK 100 million in the

second quarter 2022 (Q2 2021: NOK 122 million), and operational EBITDA of NOK 25

million (39), equivalent to an operational EBITDA margin of 24.7 percent

(32.2%). Order intake was NOK 24 million (0).

"With an operational EBITDA margin of close to 25 percent, we are very pleased

with the second quarter. Nekkar has delivered consistent project and service

execution in the period which underlines the results. Our backlog remains solid

and tender activity is high, which gives a good foundation for coming quarters,"

says Ole Falk Hansen, CEO of Nekkar.

Order intake in the second quarter was NOK 24 million, related to service and

upgrades of existing equipment, versus zero in the corresponding quarter last

year. Nekkar's order backlog increased from NOK 763 to NOK 795 million during

the second quarter.

Subsequent to the quarter, Nekkar's Shipyard Solutions business area signed a

contract of approximately USD 5 million to upgrade an existing shiplift for an

undisclosed international customer.

"It is great to see that our aftersales and services strategy continues to yield

results. There is still significant potential in our installed base. Moreover,

we are hopeful that the shiplift sector will see a comeback in newbuild tender

awards in the second half of the year," adds Ole Falk Hansen.

Nekkar reported revenues of NOK 100 million (122) in the second quarter 2022.

The company's operational EBITDA was NOK 25 million (39), equivalent to an

operational EBITDA-margin of 24.7 percent (32.2%). Operational EBITDA excludes

losses/gain on foreign exchange contracts not qualifying for hedge accounting.

Reported EBITDA was NOK 6 million (38), equivalent to a margin of 6 percent

(31.5%). EBIT ended at NOK 4 million (37).

STRONG SKYWALKER TEST RESULTS

Nekkar is currently developing sustainable and digitalised impact technologies

that aim to unlock customer value in ocean-based industries. These technologies

include the SkyWalker wind turbine installation tool, Starfish closed fish cage,

and InteliWell rig automation solution.

In June, Nekkar concluded wind tunnel testing of the SkyWalker model, with test

results above expectations. The wind tunnel tests confirmed that SkyWalker can

operate in significantly stronger wind speeds than the existing operating window

for today's solution.

"This is a lot more than what a crane is capable of, which underlines

SkyWalker's unrivaled operating window and associated cost and efficiency

benefits," says Ole Falk Hansen.

Nekkar successfully completed the pilot test of the Starfish closed fish cage in

the second quarter. Based on the test results and input from fish farming

companies, the company is now making certain design improvements to further

enhance the go-to-market product. Discussions are ongoing with fish farming

companies regarding the first location for a full-scale Starfish closed fish

cage installation.

INTELIWELL INTEREST

Subsequent to the end of the second quarter, global communication company Viasat

Inc. announced that it has agreed to join the InteliWell joint venture (JV)

together with Transocean Ltd. and Intellilift AS, a subsidiary of Nekkar ASA.

The InteliWell JV has been established with the object to accelerate the

decrease of drilling time through rig automation, and to streamline well

construction process through new AI-driven processes and tools.

"The fundamentals for the offshore rig market support the InteliWell business

case. An active fleet of close to 500 rigs underlines InteliWell's market

potential. The oil and gas industry is highly determined to continue reducing

costs and its environmental footprint, and this is exactly what InteliWell

does," adds Ole Falk Hansen.

PRESENTATION AT 08:00 AM TODAY

The second quarter and half-year 2022 report and presentation are enclosed to

this announcement.

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

presentation can be followed from this URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20220830_1/

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Ole Falk Hansen, CEO, +47 988 14 184, 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 H1 2022.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/1706/2289/Nekkar%20ASA%20Financia

l%20Statement%20Q2%20H1%202022.pdf

Nekkar ASA Presentation Q2 H1 2022.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/1706/2292/Nekkar%20ASA%20Presenta

tion%20Q2%20H1%202022.pdf