Q1 2020 financial results
AqualisBraemar’s 2020 first quarter results
HIGHLIGHTS Q1 2020
- Revenues of USD 19.8 million (Q4 2019: USD 18.8 million. Q1 2019: USD 17.4 million pro-forma combined, USD 8.2 million Aqualis stand-alone)
- Revenue for renewables up 57% compared to Q1 2019
- Operating profit (EBIT) of USD 1.3 million (Q4 2019: USD 0.4 million. Q1 2019: USD -0.2 million Aqualis stand-alone)
- Adjusted EBIT of USD 1.4 million, representing a 7% margin
- Quarterly improvement in most segments – Middle East and Europe particularly positive
- Billing ratio of 75%, up from 69% in Q4 2019
- Backlog increased 37% driven by the floating offshore wind Erebus contract
- No significant group-wide impact of COVID 19 to date
- Continued progress in realising cost synergies
- Robust financial position with cash balance of USD 10.1 million
- Dividend of NOK 0.2 per share upheld
David Wells, CEO of AqualisBraemar ASA (“AqualisBraemar” or the “Company”) commented:
“We are happy to report growth and improved profitability in the first quarter, especially considering the challenging business environment. Activity has been high across most regions and business streams. The combination of Aqualis and Braemar Technical Services has improved and broadened our service offering to clients worldwide, and we are seeing increasing benefits in terms of cross-selling.
First-quarter revenues in our renewables business stream increased by 57% relative to the first quarter of 2019, and we have won several key contracts in the quarter. We are delighted to be trusted by Simply Blue Energy and Total to support them as they move into floating wind with the Erebus project, a contract which confirms our leading position in that market. In Thailand, we have been contracted to support the construction of the world’s largest floating solar hybrid power plant. Our ambition is for 50% of our revenues to come from renewables and other ESG driven sources by 2025.
Relative to the fourth quarter we also saw a significant increase in offshore activity, particularly in the Middle East and Europe.
The COVID-19 pandemic has caused immeasurable pain to people across the world, and in these troubling times, we are focused on maintaining the health and safety of our employees, clients, and business partners. We have implemented strict measures across our business to limit the spread of the virus, whilst making every effort to maintain an uninterrupted level of service to our clients. Through our extensive global network of staff and subcontractors, as well as enhanced remote work capabilities and digital collaborations, we have been able to uphold a high level of service and activity. We continue to monitor the situation closely and remain agile in response to any business disruptions.
Given the strong business performance, the Board has proposed to uphold the dividend of NOK 0.2 per share. Our shareholders supported us in connection with the BTS transaction, and we are pleased to start paying back that trust.”
A pre-recorded audio webcast presentation of the first quarter 2020 results will be released today at 14:00 CEST. To view the webcast, please click here.
Click here to view the presentation.
Investors and financial media
Kim Boman, CFO, AqualisBraemar ASA
Telephone: +47 959 63 91
Other media enquiries
Endre Johansen, Corporate Communications AS
Telephone: +47 41 61 06 05
Email: endre.johansen@corpcom.no
About AqualisBraemar ASA
AqualisBraemar ASA (OSE: Aqua) is a public listed company that, through its subsidiaries and associates, offers adjusting, marine, offshore and renewables consultancy services to the energy, shipping, and insurance industries. The group employs specialist engineers, naval architects, master mariners, loss adjusters and technical consultants in 49 offices located across 5 continents in 32 countries. AqualisBraemar ASA operates under three distinct brands globally:
- AqualisBraemar: a leading adjusting, marine and offshore consultancy to the energy, shipping and insurance industries
- AqualisBraemar Yacht Services: a specialised marine consultant to the superyacht market
- OWC: an independent consultancy to the offshore renewables sector