NKT A/S Q3 2023 Interim Report: 44% organic growth and record-high operational EBITDA
November 08 2023 - 1:32AM
NKT A/S Q3 2023 Interim Report: 44% organic growth and record-high
operational EBITDA
Company Announcement
8 November 2023Announcement No. 30
NKT A/S Q3 2023 Interim Report: 44% organic growth and
record-high operational EBITDA
NKT CEO Claes Westerlind on the development in Q3 2023:
- For the fourth consecutive quarter, we achieved double-digit
growth in revenues and operational EBITDA, driven by capacity
expansions, satisfactory project execution, and continued growth in
our Solutions and Applications business lines.
Our leading position in the high-voltage power cable market was
once again confirmed by significant project awards, including the
largest order in NKT’s history from German Transmission System
Operator 50Hertz. We are honoured by the trust that our customers
continue to have in our ability to deliver leading power cable
solutions and are proud that NKT continue to have a central role in
connecting a greener world.
Financial highlights
|
|
|
EURm |
Q3 2023 |
Q3 2022 |
Revenue* |
501 |
358 |
Organic
growth |
44% |
8% |
Operational EBITDA |
76.5 |
35.2 |
Operational EBITDA margin* |
15.3% |
9.8% |
* Std. metal prices
2023 financial outlookThe financial outlook was
updated in Company Announcement No. 29 of 30 October 2023.
Revenues (in std. metal prices) are expected to be approx. EUR
1.85-1.9bn (previously approx. EUR 1.8-1.9bn) and operational
EBITDA is expected to be approx. EUR 240-260m (previously approx.
EUR 215-245m).
Positive development in revenues and operational
EBITDA In Q3 2023, NKT’s revenues (in std. metal prices)
increased by EUR 143m compared to Q3 2022, corresponding to 44%
organic growth. The improvement was due to increased revenues in
Solutions and Applications, where satisfactory execution and
previous capacity and capability investments drove the majority of
growth. In Service & Accessories revenues decreased, reflecting
lower service repair activity compared to Q3 2022.
Driven by higher revenues, as well as margin improvement, within
Solutions and Applications, operational EBITDA increased to a
record-high quarterly level of EUR 76.5m in Q3 2023, against EUR
35.2m in Q3 2022.
In Q3 2023, the high-voltage order backlog took another
significant step up to a new record-high level of EUR 11.0bn (EUR
9.6 in std. metal prices). This was driven by the award of a
framework agreement and five power cable projects with German
Transmission System Operator 50Hertz. The five projects have a
combined value of approx. EUR 3.5bn which set a new company record
for NKT.
In Q3 2023, NKT also progressed execution of its approx. EUR 1bn
investment program, which was announced in May 2023 to deliver on
the company’s record-high order backlog and support future
profitable growth. Significant capital expenditures related to the
investment program are expected to commence in the coming years. In
preparation for this, NKT strengthened its capital structure
through a fully subscribed rights issue, which contributed net
proceeds of EUR 357m in Q3 2023.
TeleconferenceNKT A/S will host a
teleconference for investors and financial analysts at 11:30am CET
on 8 November 2023. The presentation used during the call will be
made available before the start of the teleconference. To attend,
please register and gain access on investors.nkt.com
ContactsInvestor Relations: Michael Nass
Nielsen, Head of Investor Relations, Tel.: +45 2494 1654Media
Relations: Louise Westh Naldal, Head of Group Communications, Tel.:
+45 2982 0022
- NKT_cover_letter_Q3_2023_UK_final
- NKT_Q323_20231108_Final version
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