HAV Group ASA: Second quarter and half-year 2024 financial results

28 Aug 2024 07:00 CEST

Fosnavåg, Norway, 28 August 2024: Similar to the first quarter, HAV Group ASA
(HAV Group, OSE: HAV) recorded strong order intake in the second quarter – NOK
570 million (Q2 2023: NOK 53 million) – reflecting increased demand for the
company’s products and services. The order backlog stood at a record-high NOK
1,387 million (514) at the end of the quarter.

“The first and second quarter have been highly encouraging periods where we have
more than doubled our order backlog since the start of the year. Recent contract
wins are still in start-up phase and have not yet started to generate noticeable
income/margin contribution,” says Gunnar Larsen, CEO of HAV Group.

Important contract awards in the second quarter include a NOK 200 million
contract for equipment deliveries to Tersan Havyard, plus a contract from Fjord1
to develop systems for automation of vessel functions and autonomous navigation
for the four autonomous, zero-emission ferries that will operate the
Lavik-Oppedal crossing.

HAV Group delivered revenue of NOK 193.2 million in the second quarter of 2024,
compared to NOK 200.3 million in the second quarter last year which included a
one-off effect of NOK 46.9 million related to reversal of previously accounted
provision. EBITDA ended at NOK 0 million, compared to NOK 63.8 million in last
year’s corresponding quarter which included the aforementioned one-off effect.

“Our EBITDA result is a significant improvement compared to the past three
quarters. It is satisfying to return to a positive operating result, but our
ambitions are obviously higher than this,” adds Gunnar Larsen.

HYDROGEN PROGRESS

During the second quarter, HAV Group’s business for hydrogen-based energy
systems took important steps towards the commercial breakthrough of its ZEPOD®,
which is a module that contains a complete hydrogen energy system for ships.

In May, HAV Hydrogen entered into a cooperation agreement with vessel operator
Maris Fiducia with the objective of developing, building and operating
hydrogen-powered dry-bulk vessels in Europe. One month later, Norwegian
state-owned Enova announced that it had awarded NOK 300 million in innovation
funding to Maris Fiducia Norway AS, with HAV Hydrogen as subcontractor, to
develop, build and operate five hydrogen-powered dry-bulk vessels.

The plan is to equip each of the five vessels with a ZEPOD®. Following Maris
Fiducia’s placement of newbuild contract with its chosen shipyard, HAV Hydrogen
will enter into discussions to agree on commercial terms and delivery structure
for the cooperation project.

HAV Group reported revenue of NOK 193.2 million (200.3) in this year’s second
quarter. EBITDA was NOK 0 million (63.8), and EBIT was NOK -3.9 million (59.6).
Net cash flow was NOK -4.3 million in the quarter (19.3). HAV Group has a
healthy balance sheet with NOK 124 million in cash and cash equivalents, and NOK
33.1 million in interest-bearing debt.

OUTLOOK

Global megatrends, including regulatory changes, provide incentives and
requirements for the maritime industry to increase energy efficiency and reduce
the environmental footprint short and long term. IMO’s revised GHG reduction
strategy for shipping expected to further enhance this development.

HAV Group expects revenue to grow in 2024 (vs 2023) and increase further in 2025
on the back of recent contract wins and healthy tender activity.

HAV Group reiterates is revenue target of NOK 1.3 million in 2026.

Q2/H1 2024 PRESENTATION

HAV Group will present its second quarter and half-year 2024 financial results
via webcast today at 08:00 CET. Presenters are Gunnar Larsen, CEO, and Pål
Aurvåg, CFO.

Link to webcast: https://vimeo.com/event/4517869

Questions can be submitted during the webcast. However, questions submitted in
advance via the link will have better chance of being answered. Questions can be
submitted through this URL: https://www.menti.com/al3sph8cj4fw

The presentation material and half-year 2024 report are enclosed to this
announcement.

*EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the NGAAP financial statements as a part of the APM section of the
annual report.

(ENDS)

For additional information, please contact:
Gunnar Larsen, CEO
gunnar.larsen@havgroup.no
+47 901 05 694

About HAV Group | www.havgroup.no
HAV Group and its subsidiaries (together: “HAV Group”) is an international
provider of technology and services for maritime and marine industries. HAV
Group has several decades of industry experience, in addition to special
expertise in guiding the marine and maritime industries through the green shift
and towards the goal of zero emissions. HAV Group ASA is listed on Euronext
Growth under the ticker code HAV.

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 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Daniel Kopperstad, Head of Legal Affairs, on 28
August 2024 at 07:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

626383_HAV Group_Q222024_Presentation.pdf
626383_HAV_rapport_Q2.2024_27.08.24_Final.pdf