Vow ASA: Results for the third quarter 2024
Oslo, 26 November 2024: In the third quarter, Vow ASA ("Vow" or the "Company") (OSE ticker: VOW) had revenues of NOK 267.4 million, representing an increase of 5.0 percent relative to the third quarter in 2023.
EBITDA before non-recurring items was NOK 18.4 million, resulting in an EBITDA margin of 6.9 per cent, compared to negative NOK 15.5 million in the third quarter last year.
The Vow group has continued to deliver on cost reduction programmes. For the full year 2024, annual cost savings are estimated to be in the range of NOK 40-50 million compared to full year 2023.
"This is the third consecutive quarter with a positive EBITDA result and we are working our way back after a challenging period. The positive trend this year is a result of our wide-ranging efforts to improve the gross margin in projects, cost savings and streamlining of our organisation. We are expecting further improvements going forward," said Henrik Badin, CEO of Vow ASA.
Segments
Revenues from Maritime Solutions remained stable at NOK 93.0 million, while EBITDA before non-recurring items improved from negative NOK 15.1 million in Q3 last year to positive NOK 13.0 million in Q3 this year. The outlook remains strong.
"The cruise market is growing steadily, with fleets being renewed and expanded. More ships are implementing environmentally compliant technology, which translates into a large and growing pipeline of potential newbuild and retrofit contracts for Vow," said Badin.
Aftersales continued to grow its revenues by 5.8 percent to NOK 52.5 million.
The Industrial Solutions segment grew its revenues by 10.1 percent, compared with third quarter last year, to NOK 121.9 million in the quarter. Gross profit was reduced year-over-year, but EBITDA before non-recurring items margin improved. There is good progress in FEEDs as customers work to secure the necessary permits and financing, while the heat treatment solutions are showing continued solid performance.
The order backlog currently stands at NOK 1 103 million, compared with NOK 1 095 million one year earlier and NOK 1 034 million at the start of the year. In addition to the firm backlog, option agreements totalled NOK 116 million.
Subsequent events
On 19 November, Vow held an Extraordinary General Assembly which approved the fully underwritten rights issue of NOK 250 million announced in September. In addition, a new board of directors was elected.
The net proceeds from the rights issue will be used to improve the Company's liquidity position, for the Company to be able to execute on the current orderbook and on new opportunities and strengthen the balance sheet by way of debt repayment to facilitate an amended bank facility agreement with improved covenant headroom.
At the close of Q3, the company confirmed a second cruise newbuild contract as part of the 1+1 award announced on 31 May, Vow’s largest order to date. The delivery of Scanship equipment for the second ship is valued at EUR 14.5 million, with delivery scheduled for 2026.
Presentation and webcast
CEO Henrik Badin and CFO Tina Tønnessen will present the results at 09:00 CET 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/20241126_1/
Please see attachments for further detailed information
Third quarter 2024 interim report
Third quarter 2024 presentation
For more information, please contact:
Henrik Badin, CEO, Vow ASA
Tel: +47 90 78 98 25
Email: henrik.badin@vowasa.com (mailto:henrik.badin@vowasa.com)
Tina Tønnessen, CFO, Vow ASA
Tel: +47 406 39 556
Email: tina.tonnessen@vowasa.com (mailto: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).
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Attachments
