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Vow ASA — Earnings Release 2024
May 14, 2024
3785_iss_2024-05-14_24004bc0-97e1-47b6-8b54-eafe6f9e3b95.html
Earnings Release
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Vow ASA: Q1 2024 - On steady course
Vow ASA: Q1 2024 - On steady course
Oslo, 14 May 2024 - Vow ASA (OSE: VOW) had revenues of NOK 232.3 million in the
first quarter. As previously guided with respect to profit, it has been a soft
start to the year. The EBITDA margin was 2.4 per cent. Ongoing cost-saving
initiatives and efforts to improve gross margin in projects are expected to have
an increasingly positive impact throughout the year. The order backlog remains
solid at NOK 1 066 million.
The group had revenues of NOK 232.3 million in the first quarter of 2024,
compared to NOK 235.7 million in the first quarter last year. Revenues are in
line with previous quarters, and the company has returned to a positive EBITDA
result after two consecutive negative quarters. EBITDA was NOK 5.6 million in
the first quarter of 2024.
"We note that both the Maritime Solutions and the Aftersales segments delivered
double digit EBITDA margins in the quarter. In the Maritime Solutions segment,
the EBITDA margin has turned positive after temporarily reduced margin levels in
2023. Industrial Solutions, meanwhile, continued to be impacted by costs related
to capacity build-up and delayed order intake," said Henrik Badin, CEO of Vow
ASA.
Comprehensive cost reduction programmes are underway, coupled with initiatives
to reduce administration costs. These measures are already showing effects and
are expected to generate an increasingly positive impact throughout the year.
Some initiatives will likely involve one-off costs in the second quarter, but
Vow reiterates its EBITDA target of 15 per cent from 2025.
"It will be important to secure and execute new contracts to meet revenue and
EBITDA targets, and across the group we are bidding and negotiating new
contracts reflecting current price levels and with improved payment terms," said
Badin.
The order backlog currently stands at NOK 1 066 million including contracts
announced in the second quarter this year, compared with NOK 1 226 million one
year earlier and NOK 1 034 million at the start of the year.
Along with the firm backlog in cruise, tender activity is high. Cruise operators
are currently renewing their fleets and preparing to place new orders at yard
for ships with bigger and more advanced systems, replacing options with lower
margins that have now expired. Vow is receiving encouraging feedback also from
customers in Industrial Solutions with three large industry projects nearing
final investment decision, and a significant pipeline of projects for which Vow
technology remains highly relevant.
Key figures - Vow Group
Amounts in NOK million Q1 2024 Q1 2023 2023
------------------------------------------------------
Revenues 232.3 235.7 918.5
EBITDA 5.6 26.0 -54.7
EBITDA margin 2.4% 11.0% -6.0%
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Order backlog 1 066 1 226 1 034
Presentation and webcast
CEO Henrik Badin and CFO Tina Tønnessen will present the results at 09:00 CEST
today. The presentation will be held at Haakon VII's gate 2, 0161 Oslo.
Participants are welcome to join in person or via livestream. The streaming link
will also be available for replay after the event. The session will be held in
English.
To register and join the webcast, please paste the following link into your
browser, click 'Attend' and register your e-mail:
https://channel.royalcast.com/landingpage/vowasa/20240514_1/
Please see attachments for further detailed information:
First quarter 2024 trading update
First quarter 2024 presentation
For more information, please contact:
Henrik Badin, CEO, Vow ASA
Tel: +47 90 78 98 25
Email: [email protected] (mailto:[email protected])
Tina Tønnessen, CFO, Vow ASA
Tel: +47 406 39 556
Email: [email protected] (mailto:[email protected])
About Vow ASA
Vow and its subsidiaries Scanship, C.H. Evensen and Etia are passionate about
preventing pollution. The company's world leading solutions convert biomass and
waste into valuable resources and generate clean energy for a wide range of
industries.
Advanced technologies and solutions from Vow enable industry decarbonisation and
material recovery. Biomass, sewage sludge, plastic waste and end-of-life tyres
can be converted into clean energy, low carbon fuels and renewable carbon that
replace natural gas, petroleum products and fossil carbon. The solutions are
scalable, standardised, patented, and thoroughly documented, and the company's
capability to deliver is well proven.
The company is a cruise market leader in wastewater purification and
valorisation of waste. It provides technology and solutions which enable
industries to transition towards a fossil-free future by converting biomass and
waste into valuable resources and clean energy. The company also has strong
niche positions in food safety and robotics, and in heat-intensive industries
with a strong decarbonising agenda.
Located in Oslo, the parent company Vow ASA is listed on the Oslo Stock Exchange
(ticker VOW).
The information is such that Vow ASA is required to disclose in accordance with
the EU Market Abuse Regulation. This information is subject of the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.