Nekkar — Earnings Release 2023

Nov 28, 2023

Nekkar ASA: Third quarter 2023 financial results

Nekkar ASA: Third quarter 2023 financial results

28.11.2023 07:00:00 CET | Nekkar ASA | Additional regulated information required

to be disclosed under the laws of a member state

28 November 2023 - Nekkar ASA (Nekkar) delivered revenue of NOK 162 million in

the third quarter of 2023, an increase of 105 percent from the same quarter last

year (Q3 2022: 79). EBITDA was NOK 29 million, up 71% from the same quarter last

year (17), equivalent to an EBITDA margin of 17.8 percent (22.0). Signing of 15

MUSD contract subsequent to the quarter.

"Steady project execution in all businesses lies behind another strong quarter

from Nekkar. We are very pleased with the progress being made in both Syncrolift

business and our growth companies," says Ole Falk Hansen, CEO of Nekkar.

Order intake in the third quarter of 2023 was NOK 61 million (117), including a

NOK 30 million contract to deliver an advanced ship transfer system to an

undisclosed European naval shipyard. No major tenders were awarded nor lost in

the third quarter.

Nekkar's order backlog stood at a healthy NOK 747 million (894) at the end of

September 2023. The majority of the backlog is linked to Syncrolift's ship

transfer and shiplift business, with approximately NOK 500 million estimated for

execution by the end of 2024.

"We are experiencing high tendering activity for both Syncrolift and Techano

Oceanlift, and we are hopeful of winning new contracts by year-end. Timing of

awards is of course outside our control, but our order backlog nevertheless

provides excellent visibility over the next 18 months," says Ole Falk Hansen.

Subsequent to the end of the third quarter, Nekkar's subsidiary Syncrolift was

awarded a USD 15 million purchase order to deliver a shiplift and transfer

system to the Indonesia government-owned company PT Pal for naval and commercial

use.

Nekkar reported revenue of NOK 162 million (79) in the third quarter. EBITDA was

NOK 29 million (17), equivalent to an EBITDA margin of 17.8 percent (22.0). EBIT

was NOK 27 million (15). Cash flow from operations was NOK -35 million in the

third quarter, primarily caused by increase in working capital as projects

approach invoicing milestones. Nekkar's balance sheet remains solid with NOK 166

million in cash, no interest-bearing debt, and an undrawn NOK 200 million credit

facility available for future investments.

BUSINESS SEGMENT PROGRESS

Nekkar generated revenue from three different subsidiaries in the third quarter:

Syncrolift with NOK 149 million (78), Intelllilft with NOK 6 million (5) and

Techano Oceanlift with NOK 9 million (0).

In August, Nekkar announced that it would partner with BEWI Invest through a

joint investment in aquaculture industry supplier FiiZK - a leading provider of

closed cage systems and software solutions for fish farming. The transaction was

completed at the end of September. Nekkar invested NOK 50 million for a 39 per

cent ownership share in FiiZK. The consideration consisted of NOK 25 million in

cash and a NOK 25 million payment in-kind contribution through Nekkar's

cutting-edge Starfish technology. The following restructuring of FiiZK is

progressing as planned. FiiZK are amongst other things, delivering closed cage

solutions for more sustainable sea based farming.

"The Techano Oceanlift acquisition and the investment in FiiZK are good examples

of our flexible business development mandate. We are constantly looking for ways

to broaden our total customer based and scale up businesses. Integrating our

Starfish closed fish cage in FiiZK was a sensible and natural step in its

development phase," adds Ole Falk Hansen.

PRESENTATION AT 08:00 AM TODAY

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

presentation can be viewed from this URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20231128_3/

The presentation material is enclosed to this announcement.

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, renewables and

aquaculture.

ATTACHMENTS

Nekkar ASA_Q3_2023_presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/2782/3887/Nekkar%20ASA_Q3_2023_pr

esentation.pdf