HAV Group ASA: Third quarter 2024 financial results

22 Nov 2024 07:00 CET

Fosnavåg, Norway, 22 November 2024: HAV Group ASA (HAV Group, OSE: HAV)
delivered revenue of MNOK 134.8 in this year’s third quarter (Q3 2023: MNOK
193). Consequently, EBITDA in the third quarter ended at MNOK -24.8 (MNOK -17).
The group’s order backlog stood at a solid MNOK 1,322 at the end of the quarter,
more than twice as high as the same time last year (MNOK 607). The large number
of recently won contracts are still in the start-up phase and therefore yet to
generate noticeable income contribution.

“We stated in the second quarter presentation that our multiple recent contract
awards, particularly for our energy design and smart control systems business,
are expected to give effect from 2025. That is still the case. In the meantime,
we continue to win new contracts. 2024 has been disappointing from a financial
perspective but encouraging when it comes to order intake and market
development,” says Gunnar Larsen, CEO of HAV Group.

DNB has waived all financial covenants for Q3 and Q4 reporting. The company and
the bank have agreed to set a new covenant structure that reflects HAV Group's
growth phase and project-based business within Q1 2025 reporting. As a
requirement from DNB, HAV Group has committed to selling all its treasury shares
(3 466 829) within 31.12.24. HAV Group will initiate a process to sell the
shares shortly. Havila Holding AS has provided a guarantee for the purchase of
the shares at a price of NOK 8.50 per share.

New contracts announced in the third quarter include delivery of battery package
contracts for two vessels, including a breakthrough award in the live fish
carrier market. Subsequent to the end of the third quarter, HAV Group won a
contract valued somewhat below MNOK 100 for delivery of energy design,
integrated automation system and future oriented bridge system and battery
package to newbuild field support vessel.

“Tender activity remains high across our segments, and we are winning our fair
share of business. However, we are at the same time experiencing that ongoing
customer project schedules are pushed to the right, which has a knock-on effect
on deliveries and revenue generation from HAV Group. It is important to
underline that this is deferred and not lost revenue,” adds Gunnar Larsen.

HAV Group delivered revenue of MNOK 134.8 (193) in the third quarter of 2024.
EBITDA ended at MNOK -24.8 (-17). Net profit was MNOK -19 (-18.6). Cash flow
from operations was solid at MNOK 30.5 (-7.5). HAV Group has MNOK 148.8 in cash
and cash equivalents and limited interest-bearing debt of MNOK 34.5.

OUTLOOK

Global megatrends, including regulatory changes as well as increasing pressure
on vessel and cargo owners to remain competitive, provide commercial incentives
and regulatory requirements for the maritime industry to invest in vessels’
lifecycle performance. HAV Group possesses the technologies and products that
enable shipowners to optimize their vessels’ operational, financial and
environmental performance.

HAV Group expects revenue to grow in 2024 (vs 2023), and that revenue will grow
significantly in 2025 on the back of recent contract wins and healthy tender
activity, with associated margin improvements.

Subsidiary Norwegian Greentech is in the final stage of contract negotiations
with a customer within the segment of land-based aquaculture. Expected contract
value is approx. MNOK 10.

Q3 2024 PRESENTATION

HAV Group will present its third quarter 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/4722537

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/alw6m3y8o95v

The presentation material and third quarter 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 22
November 2024 at 07:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

632940_HAV_rapport_Q3.2024_Final_.pdf
632940_HAV Group_Q3 2024_Presentation_Final.pdf