Vow ASA first half of 2020 – record high revenues, profits and order backlog

Vow ASA reported revenues of NOK 248 million for the first half of 2020, a growth of 37% y/y (MNOK 181 in 1H 2019). Profit before tax was NOK 35 million, up from NOK 20 million for the same period last year. EBITDA came in at NOK 25 million, up 8.8% from the same period last year (MNOK 23 in 1H 2019). The company reported record high order backlog at MNOK 1.146 (including orders announced in august) in 1H of 2020, up from MNOK 700 in 1H of 2019, an increase of 63%.

“As the cruise industry adjusts and prepares itself for the longer term effects of the pandemic, the two business segments Projects and Aftersales, with customers primarily in the cruise industry, were the key drivers behind Vow’s strong performance,” says Henrik Badin, CEO of Vow ASA.

The two segments reported a combined EBITDA of NOK 40 million for the first half of 2020. Projects doubled its EBITDA year-on year. Earnings in Aftersales meanwhile, was reduced by 47% as measures to control the spread of the Covid-19 virus restricted travel and access to ships.

The business segment Landbased, reported gross margins on par with cruise, but the EBITDA for this segment was negative due to increased costs related to building the organization for growth.

“At the same time we are pleased to report several milestone contracts for industrial scale land-based plants that will be producing renewable energy and giving waste value. These contracts are in industry verticals which holds a significant potential for growth, and negotiations are ongoing for more feasibility studies, pilots and full-scale plants for world-leading clients,” says Henrik Badin, CEO of Vow ASA.