Nordic Group (MR7) H1 2023 earnings summary

Executive summary

• 1H2023 revenue reached a half-year record of $89.413m, up 12% YoY, while net profit attributable to owners fell 13% to $10.1m as higher labour-related costs and financing costs weighed on results.

• Higher deliveries lifted Project Services and Maintenance Services revenue; gross margin declined to 25% from 29% YoY.

Financial highlights

• Revenue was $89.413m versus $79.763m YoY; gross profit was $22.095m versus $23.047m, down 4%.

• Net profit after tax attributable to equity holders was $10.1m, down 13% YoY; basic and diluted EPS was 2.5 cents versus 3.0 cents.

• EBITDA was $15.013m versus $17.143m, down 12% YoY; EBITDA margin was 17% versus 21%.

• Administrative expenses fell 17% to $8.649m, mainly on lower intangible amortisation; finance costs rose 126% to $1.637m amid higher interest rates.

Outlook and guidance

• Outstanding orders totalled $202.4m at 30 June 2023: $53.1m in Project Services and $149.3m in Maintenance Services; deliveries are expected mainly over the next 36 months.

• Maintenance contracts support recurring income of about 40% yearly; management cited contract wins, cost and risk management, and further M&A opportunities as growth supports.

• The 1H2023 interim dividend was declared at 1.001 cents per ordinary share, with a stated 40% payout ratio; payment was scheduled for 4 September 2023.