Vow ASA: Q1 2024 - On steady course
Oslo, 14 May 2024 - Vow ASA (OSE: VOW) had revenues of NOK 232.3 million in the first quarter. As previously guided with respect to profit, it has been a soft start to the year. The EBITDA margin was 2.4 per cent. Ongoing cost-saving initiatives and efforts to improve gross margin in projects are expected to have an increasingly positive impact throughout the year. The order backlog remains solid at NOK 1 066 million.
The group had revenues of NOK 232.3 million in the first quarter of 2024, compared to NOK 235.7 million in the first quarter last year. Revenues are in line with previous quarters, and the company has returned to a positive EBITDA result after two consecutive negative quarters. EBITDA was NOK 5.6 million in the first quarter of 2024.
"We note that both the Maritime Solutions and the Aftersales segments delivered double digit EBITDA margins in the quarter. In the Maritime Solutions segment, the EBITDA margin has turned positive after temporarily reduced margin levels in 2023. Industrial Solutions, meanwhile, continued to be impacted by costs related to capacity build-up and delayed order intake," said Henrik Badin, CEO of Vow ASA.
Comprehensive cost reduction programmes are underway, coupled with initiatives to reduce administration costs. These measures are already showing effects and are expected to generate an increasingly positive impact throughout the year. Some initiatives will likely involve one-off costs in the second quarter, but Vow reiterates its EBITDA target of 15 per cent from 2025.
"It will be important to secure and execute new contracts to meet revenue and EBITDA targets, and across the group we are bidding and negotiating new contracts reflecting current price levels and with improved payment terms," said Badin.
The order backlog currently stands at NOK 1 066 million including contracts announced in the second quarter this year, compared with NOK 1 226 million one year earlier and NOK 1 034 million at the start of the year.
Along with the firm backlog in cruise, tender activity is high. Cruise operators are currently renewing their fleets and preparing to place new orders at yard for ships with bigger and more advanced systems, replacing options with lower margins that have now expired. Vow is receiving encouraging feedback also from customers in Industrial Solutions with three large industry projects nearing final investment decision, and a significant pipeline of projects for which Vow technology remains highly relevant.
Key figures - Vow Group
| Amounts in NOK million | Q1 2024 | Q1 2023 | 2023 |
| Revenues | 232.3 | 235.7 | 918.5 |
| EBITDA | 5.6 | 26.0 | -54.7 |
| EBITDA margin | 2.4% | 11.0% | -6.0% |
| Order backlog | 1 066 | 1 226 | 1 034 |
Presentation and webcast
CEO Henrik Badin and CFO Tina Tønnessen will present the results at 09:00 CEST today. The presentation will be held at Haakon VII's gate 2, 0161 Oslo. Participants are welcome to join in person or via livestream. The streaming link will also be available for replay after the event. The session will be held in English.
To register and join the webcast, please paste the following link into your browser, click 'Attend' and register your e-mail:
https://channel.royalcast.com/landingpage/vowasa/20240514_1/
Please see attachments for further detailed information:
First quarter 2024 trading update
First quarter 2024 presentation
For more information, please contact:
Henrik Badin, CEO, Vow ASA
Tel: +47 90 78 98 25
Email: henrik.badin@vowasa.com
Tina Tønnessen, CFO, Vow ASA
Tel: +47 406 39 556
Email: tina.tonnessen@vowasa.com
About Vow ASA
Vow and its subsidiaries Scanship, C.H. Evensen and Etia are passionate about preventing pollution. The company's world leading solutions convert biomass and waste into valuable resources and generate clean energy for a wide range of industries.
Advanced technologies and solutions from Vow enable industry decarbonisation and material recovery. Biomass, sewage sludge, plastic waste and end-of-life tyres can be converted into clean energy, low carbon fuels and renewable carbon that replace natural gas, petroleum products and fossil carbon. The solutions are scalable, standardised, patented, and thoroughly documented, and the company's capability to deliver is well proven.
The company is a cruise market leader in wastewater purification and valorisation of waste. It provides technology and solutions which enable industries to transition towards a fossil-free future by converting biomass and waste into valuable resources and clean energy. The company also has strong niche positions in food safety and robotics, and in heat-intensive industries with a strong decarbonising agenda.
Located in Oslo, the parent company Vow ASA is listed on the Oslo Stock Exchange (ticker VOW).
The information is such that Vow ASA is required to disclose in accordance with the EU Market Abuse Regulation. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Attachments
Vow - Trading update Q1 2024 Vow - Presentation Q1 2024
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