Q3 2019 financial results
Highlights Q3 2019
- Revenues of USD 18.0 million (Q3 2018: USD 18.0 million pro-forma combined, USD 8.6 million Aqualis stand-alone)
- Adjusted EBIT of USD 0.3 million (Q3 2018: Adj. EBIT of USD -0.1 million pro-forma combined)
- Operating loss (EBIT) of USD 0.2 million (Q3 2018: Operating profit of USD 0.6 million for Aqualis stand-alone)
- Billing ratio of 70% in Q3 2019
- Integration process on track with cost synergy estimate increased to USD 2.5 million from initial estimate of USD 1.1 million
- Good performance in Far East and seasonal weaker performance in Middle East
- Continued solid HSE performance and no lost time incidents (LTIs)
- Robust financial position with cash balance of USD 10.7 million
- Working capital improvement project initiated, good initial progress
Q3 2019 was our first full quarter operating as the combined company AqualisBraemar, following the acquisition of Braemar Technical Services. The combination has created a strong platform for developing the combined group and increasing shareholder value. The transaction is also a step forward to consolidate our industry.
The feedback from our clients, our employees and the insurance markets has been very positive. We are already seeing the upsides of the combination in our offering to our clients, who now benefit from a broader suite of services, larger workforce and increased geographical footprint. Our goal remains to meet the increasing expectations of our industry globally and to be recognized as the ’go to’ consultant of the shipping and energy markets.
The process of integrating the two companies is proceeding well, and we are ahead of schedule on several fronts. We originally targeted cost synergies of USD 1.1 million, with full run rate expected by the end of 2021. In our second quarter report we raised that target to USD 2.0 million, and this quarter we further increase this to USD 2.5 million. At the end of Q3 2019 we are pleased to report that we have achieved run-rate cost synergies of USD 1.9 million.
Our renewables arm, OWC, performed strongly in an increasingly robust, though competitive, market. Growth opportunities continue to manifest themselves, partly because the industry is becoming more global and new developers enter the market and partly due to our success in raising OWC’s profile in the market. By leveraging our experience from over 30 GW of projects since 2011, we are ideally positioned to benefit from this globalisation. Following the successful opening of the Taiwan office, OWC recently established new locations in UK (Edinburgh) and Australia (Perth and Melbourne) to meet the increasing global demand.
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 33 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