NKT A/S Q1 2020: Improved financial results driven by the power cable business
Company Announcement
13 May 2020
Announcement No. 7
NKT A/S Q1 2020: Improved financial results driven by the power cable business
NKT CEO Alexander Kara says:
- I am satisfied to see revenue and earnings increase in Q1 2020 based on positive development in all three business lines. I am also very pleased that in May we booked our largest high-voltage DC order ever, getting a major part of the
SuedOstLink project which underlines our position as a key partner in the green transformation of Germany. NKT Photonics recorded lower revenue and earnings in Q1 2020 as performance was negatively impacted by the coronavirus pandemic.
Q1 2020 financial highlights:
| EURm | NKT | NKT Photonics |
| Revenue | 240.3* | 12.7 |
| Organic Growth | 19% | -13% |
| Operational EBITDA | 10.2 | -1.8 |
| Operational EBITDA margin | 4.2% | -13.9% |
*std. metal prices
2020 financial outlook
The financial outlook for NKT is unchanged from Company Announcement No. 6 of 5 May 2020. The revenue (std. metal prices) is still expected to be approx. 1.0–1.1bn. The operational EBITDA is still expected to be approx. EUR 40–60m.
As stated in Company Announcement No. 6 of 5 May 2020, the financial outlook for NKT Photonics of organic revenue growth of approx. 5–15% and EBITDA margin of approx. 15–18% was withdrawn until better visibility in the markets
can be established.
NKT Q1 2020: Increased revenue and earnings driven by all three business lines
NKT generated revenue (in std. metal prices) of EUR 240.3m in Q1 2020, equal to organic growth of 19%. The revenue measured in market prices was EUR 318.4m. The increased revenue combined with improved production output and satisfactory cost focus improved operational EBITDA to EUR 10.2m. The increased revenue and earnings compared to Q1 2019 was driven by all three business lines. The coronavirus pandemic had only limited impact on the financial performance in the quarter.
After the balance sheet date, NKT was awarded its largest order in history amounting to approx. EUR 500m for the high-voltage project SuedOstLink in Germany. The high-voltage order backlog, which did not include the SuedOstLink award, totalled EUR 1.24bn (EUR 1.11bn in std. metal prices) at end-Q1 2020, approx. EUR 130m lower than at end-2019. Progress continued for several tenders across market segments and geographies and a number of project awards are expected in the market over the next few months including additional awards of the German high-voltage corridor projects.
NKT Photonics Q1 2020: Performance negatively impacted by coronavirus pandemic
NKT Photonics generated revenue of EUR 12.7m in Q1 2020, corresponding to organic growth of -13%, and EBITDA amounted to EUR -1.8m. While Q1 traditionally generates the lowest revenue, the financial development was still below expectations. The softening in performance compared to Q1 2019 was driven by the Industrial segment, where sales have been negatively impacted by a number of orders being postponed due to restrictions and uncertainty following the coronavirus outbreak.
None of the impacted orders were cancelled.
Due to the market uncertainties driven by the coronavirus pandemic, the strategic review of NKT Photonics is not expected to be concluded in the near future.
Teleconference
NKT A/S hosts a teleconference for investors and financial analysts at 09:00 am CET on 13 May 2020. It can be accessed at . The presentation for the call will be available before the teleconference. To attend, please dial in from (confirmation code: 1789072):
DK
UK +44 (0) 207 192 8338
US
Contacts
Investor Relations: Michael Nass Nielsen, Head of Investor Relations, tel:
Media Relations: Helle Gudiksen, Head of Group Communications, tel:
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