DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2024

Dovre Group Plc         Half-year financial statement         August 15, 2024, at 9:00 a.m.

DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2024

The figures presented in this half-year financial report are not audited. Last year’s corresponding period in parentheses. The Renewable Energy segment, consisting of the operations of the windmill park construction and construction design company Suvic Oy is fully consolidated in the Group’s financial statements. The non-controlling interest (49%) is presented as a separate line item in the income statements and balance sheet.

April–June 2024

• Net sales increased 7,5% to EUR 50.9 (47.3) million
  • Project Personnel: net sales EUR 25.3 (25.9) million – decrease of 2.4%.
  • Consulting: net sales EUR 3.5 (4.0) million – decrease of 13.0%
  • Renewable Energy: net sales EUR 22.1 million (17.4) – increase of 26.9 %
• EBITDA EUR 2.1 (1.8) million – increase of 19.7%
• Operating profit EUR 1.9 (1.5) million – increase of 25.7 %
• Profit before tax EUR 1.7 (1.3) million – increase of 30.2 %
• Earnings for the shareholders of the parent company EUR 1.0 (0.8) million – increase of 32.8%
• Earnings per share EUR 0.010 (0.007).
• Net cash flow from operating activities EUR 1.6 (2.9) million.

January–June 2024

• Net sales decreased by 0.1% to EUR 93.2 (93.1) million.
  • Project Personnel: net sales EUR 50.5 (50.7) million – a decrease of 0.4%.
  • Consulting: net sales EUR 7.1 (9.0) million – a decrease of 22.3%.
  • Renewable Energy: net sales EUR 35.6 (33.3) million – an increase of 6.9%.
• EBITDA was EUR 2.5 million negative (EUR 3.7 million positive)  
• Operating result was EUR 3.0 million negative (EUR 3.2 million positive)
• Profit before tax was EUR 3.3 million negative (EUR 2.8 million positive)
• Earnings for the shareholders of the parent company were EUR 1.4 million negative (EUR 1.8 million positive)
• Earnings per share were EUR -0,013 (0.017).
• Net cash flow from operating activities was EUR -0.3 (7.1) million.

Dovre Group’s profitability for the period was clearly negative due to a significant write-down (5.8 million euros) of a single Renewable Energy project in Q1. The project was technically successful but exceeded the cost budget considerably. Corrective actions have been taken and Suvic expects the remainder of 2024 to clearly exceed the comparison period of 2023 in both revenue and EBIT.

Outlook for 2024 unchanged (issued on 18 April 2024)

Dovre Group’s net sales in 2024 are expected to be in the range of 185 to 210 million euros and the operating profit (EBIT) is expected to be in the range of 2 to 4 million euros.

CEO ARVE JENSEN:

The start of the year 2024 was particularly challenging due to a significant write- down in one of our Renewable Energy projects – undertaken by our subsidiary, Suvic Oy. Apart from this setback, the remainder of Dovre Group`s operations have progressed in line with our expectations.

In the Renewable Energy segment, Suvic has commenced work on two new wind farm projects in Sweden and a Heat Pump plant for Fortum. In addition, Dovre Group has joined a renewable energy consortium in Pyhäsalmi, which encompasses three separate projects. Our initial commitment is to participate in the development of an 85 MW Battery Energy Storage System (BESS), adjacent to the former Pyhäsalmi copper and zinc mine. Our project development company, Renetec, is also evaluating several early-stage solar projects for further development.

In Project Personnel, the sales have remained strong and are on par with record highs from the previous year. Meanwhile, growth in both EMEA and Singapore has offset the reduction in North American sales following the completion of a big renewable energy project. However, profitability has decreased compared to the previous year, owing to a shift in our project and client portfolio.

In Consulting, the Norwegian market has been less active than last year. The effects of new temporary hiring legislation, which took effect last year, have had a limited impact on the energy sector’s activity level thus far. On the other hand, the public sector in Norway has been more noticeably affected, slowing down hiring processes. Furthermore, there has been a decline in public investments across civil construction, transport and ICT. The Finnish market has remained stable, with both the Proha and eSite businesses developing as planned.

We also started the next phase of our sustainability reporting program, aligning them with the new CSRD reporting requirements to ensure that we continue to create value through sustainable practices.

Looking ahead, we recognize that uncertainties persist in the global market. Nevertheless, we anticipate strong demand for our services in the second half of the year. In addition, we are proactively implementing measures to enhance operational efficiency and drive sustainable profitability.

GROUP’S KEY FIGURES

This stock exchange release is a summary of Dovre Group Plc’s Half-Year Financial Report January 1 – June 30, 2024. The full bulletin is attached to this release and is also available online at www.dovregroup.com-> Investors

Espoo, August 15, 2024

DOVRE GROUP PLC
BOARD OF DIRECTORS

For additional information, please contact:

Dovre Group PLC

Arve Jensen, CEO
arve.jensen@dovregroup.com
tel. +47 90 60 78 11

Hans Sten, CFO
hans.sten@dovregroup.com
tel. +358 20 436 2000

Financial reporting in 2024

Dovre Group releases its Q3 trading statement for January 1 – September 30, 2024, on Thursday, October 24, 2024.

Distribution
Nasdaq Helsinki Ltd
Major media
www.dovregroup.com

The figures presented in this half-year financial report are not audited.

Attachment

• Dovre H1 2024 report ENG