Nordic Group (MR7) H1 2024 earnings summary

Executive summary

• 1H2024 revenue fell 15% YoY to $76.160m and net profit fell 16% to $8.526m; lower Project Services revenue was partly offset by Maintenance Services growth.

• Long-term outlook is supported by a $240.1m order book, with management prioritising maintenance contracts and operational efficiency.

Financial highlights

• Revenue was $76.160m, down 15% YoY; gross profit fell 20% to $17.618m and profit before tax declined 12% to $10.066m.

• Net profit was $8.526m, down 16% YoY; basic and diluted EPS was 2.1 cents versus 2.5 cents.

• Other income and gains rose to $2.115m from $1.046m, mainly on a $0.9m unrealised FX gain versus a $0.2m loss; finance costs increased 23% to $2.016m.

• Net cash from operating activities was $6.245m versus cash used of $3.341m in 1H2023; investing and financing activities used $2.461m and $21.490m, respectively.

Outlook and guidance

• Outstanding orders were $240.1m at 30 June 2024: $108.4m in Project Services and $131.7m in Maintenance Services; deliveries are expected mainly over 36 months.

• Maintenance Services contributed 40% of revenue; prioritising additional maintenance contracts is intended to increase recurring revenue and mitigate cyclicality.

• Management remains optimistic long term, citing the order book, efficiency initiatives, diversified end markets and potential M&A opportunities.