ZITON A/S - Interim report Q3 2024

29 Oct 2024 14:45 CET

Highlights of Q3 2024
• EBITDA amounted to EUR 19.5m in Q3 2024 compared to EUR 9.9m in Q3 2023, an
increase of 97%. The improvement was due to an increase in revenue reflecting
that J/U WIND ENERGY went on time charter with Siemens Gamesa at the end of
February 2024, as well as improved contribution from the three smaller vessels
due to a stronger market for major component replacements.
• Macquarie Asset Management, (“Macquarie”) via Macquarie European
Infrastructure Fund 7, has entered into a share purchase agreement with funds
advised by Permira Credit and other existing shareholders to acquire all issued
and outstanding shares of Zappy TopCo ApS and its wholly-owned subsidiary ZITON
A/S (“the Transaction”).
Closing of the Transaction is anticipated by the end of Q4 2024 or Q1 2025,
subject to regulatory approvals, at which time Macquarie will obtain 100%
ownership of ZITON.
The Transaction is expected to have the following effects on ZITON’s capital
structure:
The first lien bond (ISIN NO0012928185) listed on Oslo Børs, the senior secured
ESG-linked loan and the Super Senior Working Capital Facility are expected to be
retained in the capital structure.
On 11 October 2024, ZITON summoned a Written Resolution to seek bondholders’
approval of Macquarie as a Permitted Transferee under the bond terms. The voting
period ends on 1 November 2024.
The second lien bond (ISIN NO0012928169) will be purchased by Macquarie.
Further announcements regarding the Transaction will be made if and when
appropriate.
• The terms of the first lien bond loan (ISIN NO0012928185) and the second lien
bond loan (ISIN NO0012928169) include a definition of margins that if the
leverage ratio is reduced below 4.25x the margin will be reduced by 300 bps. The
leverage ratio at the end of Q3 2024 was at 3.83x and thereby below 4.25x. The
consequence is that the margins will be reduced on the bonds issued, and
therefore the margin on the first lien bond loan will be reduced from 9 December
2024.
• The KPI guidance for 2024 is unchanged (with the exception of CAPEX for WIND
ENERGY):
o Weighted average utilisation rate. We expect a utilisation rate in the range
of 90-100%.
o EBITDA. We expect EBITDA to be in the range of EUR 55-59m.
o Cash flow from operating activities. We expect cash flows from operating
activities to be in the range of EUR 50-54m. This takes the reversal of trade
payables related to the upgrade of J/U WIND ENERGY amounting to EUR 6.5m at the
end of 2023 into account.
o CAPEX. We expect CAPEX of EUR 7-9m excluding CAPEX related to J/U WIND ENERGY.
In addition, we expect CAPEX for J/U WIND ENERGY of approximately EUR 26-28m (up
from approximately EUR 26m) including CAPEX for leg extension and capitalised
interest costs of approximately EUR 2m related to the vessel.
• Beyond 2024, the effect of having J/U WIND ENERGY on time charter with Siemens
Gamesa for the full year will positively effect EBITDA. Further, when the time
charter for J/U WIND ENTERPRISE was extended it was mutually agreed with Siemens
Gamesa that the day rate for J/U WIND ENTERPRISE will increase materially from
mid-2025. In summary, the contracted terms of the two long-term time charter
contracts with Siemens Gamesa are, almost entirely, expected to enhance running
twelve months EBITDA to around EUR 75m from mid-2025.

More information:
Access the news on Oslo Bors NewsWeb site

630634_ZITON - Q3 2024.pdf