Vow ASA Q3 2020 – Strong performance with EBITDA doubling in Cruise Projects

Vow ASA’s overall financial results in the third quarter of 2020 are marked by strong performance in the cruise project business, an aftersales business which continues to be affected by the covid-19 pandemic, and increased interest from a growing number of customers in land-based industries.

Group revenues in the third quarter of 2020 was NOK 97.9 million, a 10.6 % year-on-year growth from NOK 88.5 million. EBITDA before non-recurring items was NOK 10.7 million, down from NOK 12.2 million in the same period last year, with a negative EBITDA in the Aftersales segment as the main factor explaining the decline. Cruise Projects alone delivered a positive EBITDA of NOK 19.4 million in the third quarter 2020.

The order backlog at the end of September 2020 was NOK 1 082 million, up from NOK 989 million three months before, and from NOK 644 million at the end of September last year. In addition to the firm backlog, shipowners have placed options on the newbuild series being equipped with Scanship systems amounting to NOK 619 million in likely future revenues.

“In the third quarter the trends from the previous quarters continued. Most cruise ships remain inactive, which means that demand for spares and chemicals for our aftersales business is low. On the other hand, newbuild projects continue at full speed at the yards, relatively unaffected by the pandemic”, says Henrik Badin, CEO of Vow ASA.

Badin further adds; “A more structured and disciplined approach to business development has increased interest from customers in land-based industries and has resulted in a firmer pipeline of potential projects. Looking forward we now also see more cruise ships returning to sea, which will likely result in a gradual recovery of our aftersales business.”