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DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2023

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

Dovre Group Plc         Half-year financial statement         August 17, 2023, at 8.45 a.m.

DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2023

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 2023

  • Net sales remained stable at EUR 47.3 (47.3) million
    • Project Personnel: net sales EUR 25.9 (22.4) million – increase of 15.7%.
    • Consulting: net sales EUR 4.0 (4.6) million – decrease of -13.5%
    • Renewable Energy: net sales EUR 17.4 million (20.3) – decrease of -14.2 %
  • EBITDA EUR 1.8 (1.9) million – decrease of -6.5%
  • Operating profit EUR 1.5 (1.7) million – decrease of -10.5%
  • Profit before tax EUR 1.3 (1.7) million – decrease of -23.8 %
  • Earnings for the shareholders of the parent company EUR 0.8 (1.1) million – decrease of -26.4%
  • Earnings per share EUR 0.007 (0.010).
  • Net cash flow from operating activities EUR 2.9 (-2.6) million.

January–June 2023

  • Net sales decreased by –2.1% to EUR 93.1 (95.1) million.
    • Project Personnel: net sales EUR 50.7 (45.1) million – an increase of 12.3%.
    • Consulting: net sales EUR 9.1 (9.0) million – an increase of 1.4%.
    • Renewable Energy: net sales EUR 33.3 (41.0) million – decrease of -18.8%.
  • EBITDA decreased to EUR 3.7 (3.8) million – decrease of -2.7%
  • Operating profit EUR 3.2 (3.4) million – decrease of -5.1%
  • Profit before tax EUR 2.8 (3.1) million – decrease of -12.0%
  • Earnings for the shareholders of the parent company EUR 1.8 (2.2) million – decrease of -16.5%
  • Earnings per share EUR 0.017 (0.020).
  • Net cash flow from operating activities EUR 7.1 (-0.6) million.

Outlook for 2023 unchanged (issued on 26 June 2023)

Dovre Group’s net sales in 2023 are expected to be in the range of 185 to 195 million euros and the operating profit (EBIT) is expected to be above 7 million euros.

CEO ARVE JENSEN:

H1 2023 was marked by some headwinds, leading to a modest decline in both net sales and profitability compared to the corresponding period last year. Year-on-year fluctuations in foreign currency exchange rates had an impact on the Group’s net sales in H1. At fixed currencies, the year-on-year growth of net sales in H1 would have been 3.4% instead a of decrease of -2.1%. In particular, the weakened Norwegian crown had the effect of decreasing net sales. The Renewable Energy segment experienced challenges with fewer and smaller projects, which contributed to an 18.8% decrease in net sales for this segment.

On a positive note, our Project Personnel and Consulting segments experienced growth, with net sales increasing by 12.3% and 1.4%, respectively. This highlights the strength and adaptability of these segments, reaffirming our strategic focus on delivering high-quality services to our clients. In terms of geographical market areas, our largest sales increase occurred in North America, owing primarily to strong activity levels in Canada.

One notable factor impacting our overall revenue and profit during H1 2023 has been currency fluctuations, particularly the weakening of the Norwegian Crown. The effects of Norway’s new temporary hiring legislation, which went into effect in April, have had a minor impact on the energy sector’s activity level thus far. The public sector, however, has been more noticeably affected. Moreover, geopolitical unrest, surging inflation rates, and soaring energy prices in various parts of the world have all had an impact on consumer demand and increased cost pressures.

Despite the challenges faced in the Renewable Energy sector, we continue to believe in its growth potential. Our long-term outlook remains positive, and we continue to explore opportunities to leverage our expertise and expand our services within the energy sector.

Looking ahead, we recognize that uncertainties persist in the global market. Nevertheless, we still 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

EUR million 4–6
2023 		4–6
2022 		Change
% 		1–6
2023 		1–6
2022 		Change
% 		1–12
2022
Net sales 47.3 47.3 0.0% 93.1 95.1 -2.1% 203.0
EBITDA 1.8 1.9 -6.5% 3.7 3.8 -2.7% 9.5
    % of net sales  3.7% 4.0%   4.0% 4.0%   4.7%
Operating result 1.5 1.7 -10.5% 3.2 3.4 -5.1% 8.5
    % of net sales  3.2% 3.5%   3.4% 3.5%   4.2%
Profit before taxes 1.3 1.7 -23.8% 2.8 3.1 -12.0% 7.4
    % of net sales 2.8% 3.6%   3.0% 3.3%   3.7%
Earnings for the shareholders of the parent company 0.8 1.1 -26.4% 1.8 2.2 -16.5% 5.2
    % of the net sales 1.6% 2.2%   1.9% 2.3%   2.5%
Net cash flow from operating activities 2.9 -2.6 211.3% 7.1 -0.6 1296.9% 2.6
Net debt -6.4 -1.1 -458.8% -6.4 -1.1 458.8% -3.0
Debt-equity ratio (Gearing), % -18.5% -3.6%   -18.5% -3.6%   -8.8%
Earnings per share, EUR              
    Undiluted 0.007 0.010 -26.4% 0.017 0.020 -16.5% 0.049
    Diluted 0.007 0.010 -26.4% 0.017 0.020 -16.5% 0.049

This stock exchange release is a summary of Dovre Group Plc’s Half-Year Financial Report January 1 – June 30, 2023. The full bulletin is attached to this release and is also available online at www.dovregroup.com-> Investors

Espoo, August 17, 2023

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

Sirpa Merelä, CFO
sirpa.merela@dovregroup.com
tel. +358 20 436 2000

Financial reporting in 2023

Dovre Group releases its Q3 trading statement for January 1 – September 30, 2023, on Wednesday, October 26, 2023.

Distribution
Nasdaq Helsinki Ltd
Major media
www.dovregroup.com

 

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