Vow ASA trading update Q1’23 – Profitable growth, record high tendering activity in new markets

The company is showing profitable growth and earnings at stable levels across all segments. The growth was particularly strong in cruise, with high activity related to equipment deliveries to cruise newbuild projects in Maritime Solutions and continued rebound in Aftersales.

“We are proud to continue our strong, profitable growth. This year, 12 large cruise ships will enter service with Scanship clean tech on board, which will also drive our Aftersales business. Within Industrial Solutions, the C.H. Evensen team is doing a fantastic job growing the heat treatment business. This has proven a very successful acquisition for Vow. And not the least, we are delivering technology to Vow Green Metals’ early production plant, which will be operational this summer,” says Henrik Badin, CEO of Vow ASA.

The order backlog remains strong, at NOK 1.226 million plus NOK 929 million in options, providing good visibility for revenues and cash generation. The tendering activity for new projects is very high.

Strong global demand

Vow is experiencing a strong demand for its solutions across several industry verticals, with biocarbon and recovered carbon black identified as top candidates for rapid scale-up.

“Two years ago, we de-merged Vow Green Metals which is now building Europe’s largest biocarbon production facility. We are about to complete a large-scale pyrolysis reactor for industry, and we are continuing the collaboration with ETEL to convert end-of-life tyres into recovered carbon black. These are some examples of projects that have attracted the interest of several industrial players around the world, companies which are looking to transition their industries towards a fossil-free future and to valorise waste and biomass to enhance circular economy,” says Badin.

“Currently, Vow is developing around 80 industry projects, which will multiply the size and value of our company in the coming years. In response, we are strengthening our organisation to ensure that we continue to deliver according to expectations to our many existing customers, while at the same time having sufficient resources and capabilities to grow towards these new opportunities,” continues Badin.

As of first quarter 2023, Vow changed the names of two of its business segments from Landbased and Cruise Projects to Industrial Solutions and Maritime Solutions, respectively. The name of the third segment, Aftersales, remains unchanged.