Nekkar ASA: third quarter 2022 financial results

24 Nov 2022 07:00 CET

24.11.2022 07:00:00 CET | Nekkar ASA | Additional regulated information required
to be disclosed under the laws of a member state

24 November 2022 - Continued high tendering activity resulted in a third quarter
2022 order intake of NOK 117 million, an increase of almost 70 percent from the
same period last year (Q3 2021: 69) and the highest quarterly intake since 2020
for Nekkar ASA (Nekkar). Solid operational performance resulted in an
operational EBITDA margin of 27.1 percent (30.9%) from revenue of NOK 79 million
in this year's third quarter (Q3 2021: NOK 128 million).

"Our operational performance was solid, which is reflected in the high EBITDA
margin. Revenue in the quarter was lower than expected due to previously
mentioned client-side delays. The healthy order intake underlines a buoyant
market for our shipyard solutions," says Ole Falk Hansen, CEO of Nekkar.

Order intake in the second quarter was NOK 117 million (69), which is the
highest level since 2020. The order intake includes sale of upgrades, newbuilds
and spares. It reflects high tendering activity, partly driven by increased
defence budgets. Nekkar's order backlog stood at a healthy NOK 894 million (948)
as of 30 September 2022.

"Our order backlog provides excellent visibility for the coming years for our
Shipyard Solutions business area. Further, we continue to experience high
tendering activity in this segment," adds Ole Falk Hansen.

Nekkar reported revenue of NOK 79 million (128) in the third quarter 2022. The
company's operational EBITDA was NOK 21 million (39), equivalent to an
operational EBITDA-margin of 27.1 percent (30.9%). Operational EBITDA excludes
losses/gains on foreign exchange contracts not qualifying for hedge accounting.
Reported EBITDA was NOK 5 million (37), equivalent to a margin of 6 percent
(28.6%). EBIT ended at NOK 3 million (36). Both reported EBITDA and EBIT were
significantly impacted by currency fluctuations between USD and NOK.

IMPACT TECHNOLOGIES

Nekkar is currently developing sustainable and digitalised impact technologies
that aim to unlock customer value in ocean-based industries. These technologies
include the InteliWell rig automation solution, SkyWalker wind turbine
installation tool, and Starfish closed fish cage.

In the third 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 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 InteliWell JV has recently conducted successful testing of its automation
software on board an ultra-deepwater drilling rig. This enables rig operators to
drill faster and more consistently. Negotiations for the first commercial
contract is still ongoing.

Subsequent to the quarter, Nekkar has announced that leading international wind
turbine installation player BMS Group has entered into an innovation agreement
for the development and testing of the SkyWalker wind turbine installation tool.
Several of the large international wind turbine manufacturers utilise BMS Group
as their favoured wind turbine installation partner.

During the third quarter, Nekkar has completed design improvements to further
enhance the go-to-market product of the Starfish closed fish cage. Development
of the full-scale Starfish continues as planned.

"The proposed resource rent tax on aquaculture activities has postponed
decisions related to the location of the first full-scale Starfish installation.
However, we will progress as planned to ensure that we do not lose valuable time
and are prepared to install Starfish as soon as the fish farming companies are
ready to proceed," says Ole Falk Hansen.

Soft funding remains a key part of Nekkar's development strategy for its impact
technology projects. During the third quarter, Nekkar received a total of NOK
5.5 million in funding for its impact technologies. So far in the fourth
quarter, Nekkar has received an additional NOK 6.5 million in soft funding.

PRESENTATION AT 08:00 AM TODAY

The third quarter 2022 business update presentation is 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/20221124_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, renewables and
aquaculture.

ATTACHMENTS

Nekkar ASA_Q3 2022_presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847326/1905/2585/Nekkar%20ASA_Q3%202022_
presentation.pdf

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