Endúr ASA: Fourth quarter and full-year 2022 financial results
24 February 2023 – Endúr ASA (Endúr) recorded quarterly revenues of NOK 668.3 million in the fourth quarter 2022, an increase of one percent from an equally strong corresponding quarter last year (Q4 2021: NOK 663.2 million). Adjusted EBITDA ended at NOK 55.3 million (62.2), well in line with previous guiding, and EBIT nearly tripled to NOK 20 million (7.3). Cash flow from operations was NOK 129.4 million (-86.5).
“We continue to deliver strong operating results and cash flow. Particularly the Marine Infrastructure Segment delivers solid figures, but it is also worth noting that Endúr Maritime has improved margins for the fifth quarter in a row. Overall, the fourth quarter results show that our efforts to improve profitability, liquidity, and cash generation continue to pay off,” says Jeppe Raaholt, CEO of Endúr.
Order intake in the fourth quarter was NOK 243 million (169). The order backlog was NOK 1,310 million at year-end, providing good visibility for 2023. The latter figure does not include the construction phase of the NOK ~1.5-1.8 billion contract with Icelandic salmon farmer Geo Salmo.
“We experience seasonally high tender activity for the Marine Infrastructure segment, while there is also substantial international interest for various land-based fish farming projects. Bid activity is high for Endúr Maritime too. We expect to see a growing order backlog throughout 2023,” adds Jeppe Raaholt.
Endúr reported revenue in the fourth quarter 2022 of NOK 668.3 million (663.3). Adjusted EBITDA was NOK 55.3 million (62.3), equivalent to a margin of 8.3% (9.4%). Reported EBITDA was NOK 52.7 million (61.9). EBIT was NOK 20 million (7.3) and profit before tax NOK 1.7 million (-17.3). Cash flow from operations was NOK 129.4 million (-86.5).
STRONG FULL-YEAR RESULTS
For the full year 2022, revenue was NOK 2,510, a 15 percent increase from NOK 2,186 million in 2021. Adjusted EBITDA ended at NOK 230.7 million, a 23 percent increase from 2021 (NOK 187.8 million). Reported EBITDA was NOK 230 million (149). Full-year EBIT was NOK 96.3 million versus NOK -8 million (pro forma) in 2021. Profit before tax was NOK 14.3 million in 2022, compared to
NOK -118.6 (pro forma) million in 2021.
STRENGTHENING OF BALANCE SHEET
Endúr’s net interest-bearing debt was NOK 582 million (687) at year-end. Subsequent to year-end, the company has secured bank loans of approximately NOK 550 million, an overdraft facility of NOK 150 million, and completed a private placement that secured gross proceeds of NOK 140 million. The committed bank financing will partly be utilized for a forthcoming refinancing of Endúr’s outstanding senior secured open callable bond, currently standing at a net principal amount of NOK 810 million. The refinancing, including the early redemption of the bond loan, is expected to be completed during the first quarter of 2023.
“The refinancing enables a calculated NOK 40-50 million reduction in annual interest expenses. In addition, it is expected to reduce our net interest-bearing debt with close to NOK 100 million. This provides us with added flexibility that will allow us to generate more cash going forward,” adds Jeppe Raaholt.
ACTIVE MARINE INFRASTRUCTURE SEGMENT
Endúr is a leading full-service provider for aquaculture solutions and marine infrastructure in Norway and Sweden, servicing both public and private sector.
The Marine Infrastructure segment delivered revenue of NOK 311.1 (244.6) in the fourth quarter. EBITDA was NOK 50.5 million (56.1), equivalent to an EBITDA margin of 16.2% (22.9%). Several early-phase projects have so far been reported at cautionary margin levels, which impacts the EBITDA.
In the Aquaculture Solutions segment, revenue was NOK 299.6 million (376.3) in the fourth quarter. The lower EBITDA of NOK 1.2 million (22.3), equivalent to an EBITDA margin of 0.4% (4.5%), is caused by shift in revenue mix, cautionary provisions on ongoing projects and cost coverage only when producing above target price at Salmon Evolution BTA.
OUTLOOK
Within Aquaculture Solutions, the construction phase – the most revenue-intensive phase – at the Geo Salmo project is expected to commence in H2 2023. Numerous projects, which are not affected by the temporary halt in license applications, are awaiting final government permissions. There is also substantial interest for various land-based projects from other countries and continents.
The outlook for Marine Infrastructure remains attractive due to maintenance gap on critical infrastructure and a solid pipeline of secured projects and ongoing tenders, including material bids that are expected to be concluded in the near term.