Hav Group (HAV) Q3 2024 earnings summary

Executive summary

• Order backlog reached NOK 1,322 million as of September 30, 2024, up 118% year-over-year, reflecting strong order intake, especially in energy design and smart control systems.

• Q3 2024 revenue was NOK 134.8 million, down from NOK 193.0 million in Q3 2023, mainly due to lower trading activity and project delays at customer shipyards.

• EBITDA for Q3 2024 was NOK -24.8 million, compared to NOK -17.0 million in Q3 2023, with recent contract wins not yet contributing to income.

• Recent contract wins, including battery package and energy design contracts, are in early phases and expected to impact results mainly from 2025.

• Cash and bank deposits at quarter-end were NOK 148.8 million, with positive cash flow from operations of NOK 30.5 million.

Financial highlights

• Q3 2024 revenue: NOK 134.8 million; EBITDA: NOK -24.8 million; EBIT: NOK -28.9 million; net loss: NOK -19.0 million.

• EBIT margin was -21.5% for Q3 2024.

• Book-to-bill ratio for Q3 2024 was 0.52; order intake was NOK 70.0 million.

• Cash and bank deposits at NOK 148.8 million at quarter-end; total receivables increased by NOK 245 million from year-end.

• Total liabilities rose to NOK 662.8 million, mainly due to advance payments from customers.

Outlook and guidance

• Revenue is expected to grow in 2024 compared to 2023, with significant growth and margin improvement anticipated in 2025, driven by strong order backlog and recent contract wins.

• Market opportunities are increasing in offshore energy, shipbuilding, and aquaculture, though some investment decisions are delayed.

• Market trends and regulations favor energy-saving and emission-reducing solutions, supporting future growth.

• Capacity utilization is expected to increase in 2024, reducing the impact of project delays.

• Norwegian Greentech is finalizing a contract in land-based aquaculture, valued at approximately NOK 10 million.