Q4 2019 financial results
February 27, 2020 – AqualisBraemar’s 2019 fourth quarter results
Highlights Q4 2019
- Revenues of USD 18.8 million (Q3 2019: USD 18.0 million. Q4 2018: USD 19.6 million pro-forma combined, USD 9.8 million Aqualis stand-alone)
- Operating profit (EBIT) of USD 0.4 million (Q3 2019: USD -0.2 million. Q4 2018: USD 0.9 million Aqualis stand-alone)
- Billing ratio of 69%
- Quarterly improvement driven primarily by offshore activity in Middle East and Americas
- Integration progressing on track – cost synergy estimate of USD 2.5 million maintained
- Robust financial position with cash balance of USD 10.9 million
- Proposed dividend of NOK 0.2 per share, moving to semi-annual schedule
Highlights full year 2019
- Fulfilled long term strategic goal to expand into insurance services through transformative acquisition of Braemar Technical Services (BTS), creating AqualisBraemar
- Pro-forma combined revenue of USD 73.4 million (2018: USD 76.0 million pro-forma combined, USD 36.2 million 2018 Aqualis stand-alone)
- Pro-forma combined adjusted EBIT of USD 0.7 million (2018: USD 1.2 million pro-forma combined)
- Weak start of 2019, but positive trend towards second half
- Continued strong growth in renewables – organic revenue growth of 46% year-on-year
David Wells, CEO of AqualisBraemar ASA (“AqualisBraemar” or the “Company”) commented:
“2019 was an important and transformative year for AqualisBraemar. The acquisition of Braemar Technical Services roughly doubled the size of the company and improved our offering to our clients, who now benefit from a broader suite of services and increased geographical footprint. The transaction was also an important step forward to consolidate our industry. The integration is on track and progressing well quarter by quarter.
OWC, our renewables arm, had a strong year delivering annual organic revenue growth of 46%. We continue to see increasing demand for OWC’s expertise and anticipate continued high growth in 2020, albeit at a lower rate than 2019.
In the fourth quarter, we saw improvements across most segments. Middle East and Americas delivered the highest sequential growth in revenue and EBIT, primarily driven by increased offshore activity.
The year has started positively across our businesses, but tail risk has increased due to COVID-19 and potential impact on economic activity. Activity in China will be significantly affected in the first half of the year.
Finally, we are happy to announce that the Board has proposed resuming dividend payments on a new semi-annual schedule. Our shareholders supported the Company in connection with the BTS transaction, and we are pleased to start paying back that trust.”
A presentation of the fourth quarter 2019 results is scheduled today at 08:00 am CET at Danske Bank, Bryggetorget 4, Oslo. The event will be webcasted live and available for replay shortly after. To watch the webcast over the internet, please visit our webcasts page at least 10 minutes early to register and to download and install any necessary software.
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Investors and financial media
Kim Boman, CFO, AqualisBraemar ASA
Telephone: +47 959 63 912
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 48 offices located across 5 continents in 31 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
- Offshore Wind Consultants: an independent consultancy to the offshore renewables sector