Beerenberg (BBERG) Q2 2024 earnings summary

Executive summary

• Altrad made an offer to acquire all shares at 41.5 NOK per share, valuing the company at around 1 billion NOK, with pre-acceptance from the second largest shareholder and support from CEO and CFO; offer expected to commence by September 16.

• Achieved record-high revenue and EBITDA in Q2 2024, driven by strong activity in both Services and Advanced Solutions segments.

• Order intake surged to MNOK 510 in Q2, with a robust order backlog of BNOK 10.3.

• Maintenance shutdown at Tjeldbergodden extended, increasing project scope and workforce requirements.

Financial highlights

• Q2 2024 revenue reached MNOK 802, up 30% year-over-year; EBITDA was MNOK 84, up 45% from Q2 2023.

• First half 2024 revenue totaled MNOK 1,441 (+25% YoY); EBITDA for the period was MNOK 142 (+43% YoY), yielding a 9.8% margin.

• Net profit in Q2 2024 was MNOK 43; finance costs have decreased and are expected to be half of 2023 levels.

• Cash position at quarter-end was MNOK 34, down from MNOK 184 a year earlier, mainly due to high activity, earnout payments, and dividends.

• Cash flow from operating activities was positive at MNOK 64; equity ratio stands at 43%.

Outlook and guidance

• Full-year 2024 EBITDA guidance is MNOK 280–300, reflecting continued strong prospects.

• High activity expected to continue, with major contracts like Ekofisk ramping up in Q3 and beyond.

• Mechanical and robotics segments anticipate increased activity and order intake globally.

• Ongoing revision of sustainability strategy to align with market and stakeholder expectations.

• Ongoing cost pressures from rising salaries and labor-related expenses are expected.