Report for the first quarter 2020

Wed, May 13, 2020 08:00 CET

Financial and operating highlights 1Q20 (1Q19 in brackets):

Operating revenues were NOK 1 967 million (NOK 1 687 million)
EBITDA was NOK 250 million (NOK 251 million)
Impairment in the quarter NOK 93 million (NOK 0 million)
EBIT was NOK -101 million (NOK 22 million)
Net result after tax was NOK 118 million (NOK -200 million)

Segment highlights 1Q20 (1Q19 in brackets):

Renewable energy

EBITDA NOK 419 mill. (NOK 384 mill.)
Total generation up 24%
Year on year decreasing electricity prices in all markets
Sale of 51% stake in GWP France, net cash proceeds of EUR 46 million

Högaliden project estimated start-up December 2020.

Shipping / Offshore wind

EBITDA NOK - 29 mill. (NOK -51 mill.)
All three Tern vessels worked on various projects in the quarter
Low efficiency due to i.a. adverse weather conditions
Total utilization for T&I and O&M vessels 75% (48%)
New crane ordered for Brave Tern EUR 43 million
Solid growth for GWS
Secured contract backlog for the three Tern vessels Q2-Q4 2020 is 57%

Cruise

EBITDA NOK -105 mill. (NOK -44 mill.)
Good booking performance before Covid-19
All 4 cruise ships in warm lay-up in Scotland
Cruise operation paused until it is considered safe to resume cruising

Financial information
The Group of companies’ operating revenues in the quarter amounted to NOK 1 967 million (NOK 1 687 million). Renewable energy had operating revenues of NOK 559 million (NOK 513 million), Shipping / Offshore wind NOK 630 million (NOK 369 million), Cruise NOK 499 million (NOK 504 million). Other investments had operating revenues of NOK 280 million (NOK 301 million), of which NHST Media Group comprised NOK 281 million (NOK 291 million).

EBITDA in the quarter was NOK 250 million (NOK 251 million). Renewable energy achieved EBITDA of NOK 419 million (NOK 384 million), Shipping/Offshore wind NOK -29 million (NOK -51 million), Cruise NOK -105 million (NOK -44 million). Within Other investments EBITDA was NOK -34 million
(NOK -38 million), of which NHST contributed with NOK 12 million (NOK 0 million).

Depreciation in the quarter was NOK 258 million (NOK 229 million). In the quarter an impairment within the segment Other Investments was recognized with NOK 93 million. The impairment was related to write down of goodwill recognized for the investment in Mention Solutions S.A., a subsidiary of NHST due to the increased uncertainty related to consequences of the Covid-19 situation.

EBIT in the quarter was NOK -101 million (NOK -22 million).

Net financial items in the quarter were NOK 230 million (NOK - 215 million). Net interest expenses were NOK 101 million (NOK 93 million). Other financial expenses amounted to NOK 8 million (NOK 95 million). In the quarter net realized sales gains on shares and bonds were recognized with NOK 359 million, whereof NOK 366 was gain on the sale of GWP France within Renewable energy.

In addition there were net unrealized financial losses of NOK 21 million (loss 27 million) in the quarter, which consist of (1) unrealized net gain on foreign currency of NOK 221 million (loss NOK 50 million), (2) unrealized loss related to interest hedging of NOK 119 million (loss NOK 25 million), (3) unrealized loss on fuel hedging and currency hedging of NOK 34 million (gain NOK 23 million) and (4) unrealized loss on financial assets NOK 89 million (gain NOK 26 million).Net Result in the quarter was NOK 118 million (NOK -200 million) of which NOK 98 million (NOK -201 million) is attributable to the shareholders of the parent company. The non-controlling interests´ share of the net result in the quarter was NOK 20 million (NOK 1 million).

Other information

Annual General meeting / Dividend

With regard to the Annual General Meeting 2020 the board has proposed a dividend of NOK 4.30 per share. This corresponds to a total payment for the company NOK 183 million which carries the support of the Shareholders’ Committee.

The annual general meeting is scheduled for Wednesday 27 May 2020.