Endúr ASA: Fourth quarter and full-year 2022 financial results

24 Feb 2023 07:00 CET

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.
Increased demand for renewable energy, LNG and carbon neutral production of
steel, will provide additional opportunities within Endúr’s niches.
COMPANY PRESENTATION AT 08:00 CET TODAY
Endúr will host live webcast presentation today at 08:00 (CET). Investors,
analysts, lenders and media are invited to follow the webcast from the following
URL:
https://channel.royalcast.com/landingpage/hegnarmedia/20230224_1/
The fourth quarter and full-year 2022 results presentation is enclosed to this
announcement.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Einar Olsen, CFO of Endúr ASA, on 24 February 2023
at 07:00 CET.

(ENDS)

For further information, please contact:
Media
Jeppe Raaholt, CEO of Endúr, tel: +47 976 69 759
Investors
Einar Olsen, CFO of Endúr, tel: +47 924 01 787

About Endúr ASA
Endúr ASA (OSE: ENDUR) is a leading supplier of construction and maintenance
projects and services for marine infrastructure, including facilities for
land-based aquaculture, quays, harbours, dams, bridges and other specialised
concrete and steel projects. The company and its subsidiaries also offer a wide
range of other specialised project and marine services. Endúr ASA is
headquartered in Bergen, Norway. See www.endur.no

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583455_Full-year and Q4 2022 financial results presentation.pdf