Q2 2020 financial results
AqualisBraemar’s 2020 second quarter results
HIGHLIGHTS Q2 2020
- Revenues of USD 19.2 million (Q1 2020: USD 19.8 million. Q2 2019: USD 19.2 million pro-forma combined, USD 9.9 million Aqualis stand-alone)
- Operating profit (EBIT) of USD 1.6 million (Q1 2020: USD 1.3 million. Q2 2019: Loss of USD 0.3 million Aqualis stand-alone)
- Billing ratio of 74%
- Revenue in renewables segment up 70% compared to Q2 19
- Solid profitability across all segments
- Cost synergy target increased from USD 2.5 million to USD 2.8 million, to be realised during 2H20 and 1H21
- Operating cash flow of USD 2.6 million
- Robust financial position with cash balance of USD 11.0 million
David Wells, CEO of AqualisBraemar ASA (“AqualisBraemar” or the “Company”) commented:
“The second quarter of 2020 has presented some unique challenges to AqualisBraemar, our employees, and our clients. However, these challenges fade in comparison to those experienced by the individuals directly impacted by the COVID-19 pandemic. Our sincere thanks go out to health workers across the world, who have worked tirelessly, at great personal risk, to save lives and prevent the spread of the virus.
We are proud to present record profitability and cash flow in the quarter, especially considering the challenging business environment. Through our extensive global reach, increased remote work and enhanced digital collaborations, we have maintained a high level of service to our clients. Increased focus on capital efficiency has resulted in improved cash conversion, resulting in an improved cash position despite paying dividend to our shareholders during the quarter.
OWC, our renewables arm, continues to grow at a brisk pace delivering organic revenue growth of 70% compared to the second quarter of 2019. With several strong contract wins in 2020 so far, and an increased share of renewables related projects in our traditional business lines, we expect growth in the segment to continue. Our ambition is for 50% of our revenues to come from renewables and other ESG driven sources by 2025.
While we expect lower activity and margins in Q3 due to seasonality and the continued impact of travel restrictions and cautious client behaviour, we remain optimistic towards the development of AqualisBraemar. The integration between Aqualis and BTS has been a success, and we have identified further potential for cost synergies to be realised over the next 12 months.
Finally, we remain committed to our strategy to return capital to our shareholders and are pleased to note that our Board of Directors signals an expectation of an additional dividend during Q4 2020.”
A pre-recorded audio webcast presentation of the second quarter 2020 results will be released today at 14:00 CEST. To view the webcast, please click here.
The quarterly report and the slide deck for the quarterly presentation are available on www.newsweb.no and on our Reports and Presentations page.
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) offers independent consultancy services to the offshore energy (oil & gas and renewables), shipping and insurance industries. The group employs specialist engineers, naval architects, master mariners, loss adjusters and technical consultants in 35 countries worldwide. AqualisBraemar ASA operates under three brands:- 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