CEO’s Review Front pageInvestorsCEO’s ReviewEnersense's profitability improved significantly After a challenging first half of the year, Enersense had an encouraging third quarter. Revenue in July–September increased by 18% from the comparison period and amounted to EUR 111.5 million. The growth was primarily driven by the Industry segment’s higher service and project business volumes and the favourable development of the Connectivity segment’s project business related to the construction of optical fibre networks. Our efficiency programme is progressing as planned, and our systematic work to improve profitability is bearing fruit. After a loss-making second quarter, the Group’s EBITDA returned to positive and amounted to EUR 8.6 (3.9) million in the third quarter. Profitability improved in all segments. The businesses subject to a strategic assessment were loss-making in the early part of the year, but in the third quarter, their combined result was zero (EUR -0,4 million Q3/2023), for which I would like to thank the entire personnel of the units. At the end of the review period, the Group’s order backlog stood at EUR 353 (511) million. The Industry segment’s order backlog decreased due to some long-term customer projects being close to completion. Although the construction of optical fibre networks continued at a good level, the Connectivity segment’s order backlog was particularly impacted by continued caution of telecom operators, especially in terms of mobile network investments. There were delays in some investment decisions in renewable energy, which had an effect on the Power segment’s order backlog. Additionally, in the comparison period, the segment’s order backlog was exceptionally high as a result of electricity distribution system synchronisation projects between the Baltic countries and Europe. We entered into significant contracts During the third quarter, we entered into significant agreements, including the one with Boliden, a Swedish metal company, for an extensive development project related to the Odda production plant in Norway. After the review period, we announced a four-year contract with Telia Towers Finland Oy on the maintenance of their mast and equipment room infrastructure, and an agreement with Fingrid on the construction of new substations in Lemmensaari and Sydänmaa. Strategic assessment progressing as planned In June, we announced that we would focus on our core businesses, which provide project and service operations for the green energy transition, and would carry out a strategic assessment of our businesses related to onshore wind power and solar energy project development, offshore wind power, and zeroemission transport solution development. The strategic assessment is progressing as planned, and we will report the results once the assessment has been completed. We will continue to systematically implement our strategy to improve profitability I started as the CEO of Enersense in late September. During my first few weeks here, I have sought to meet as many customers as possible and get to know our own teams. I am impressed by our people’s expertise and commitment to serving our customers. As one of our customers put it, “Enersense has a positive attitude and drive that cannot be found elsewhere in Finland”. We have a lot of positive and innovative spirit on which to build a good future. We innovate in sustainability together with our customers. It is an essential part of our focus on our core business: the development of high-quality services that enable a sustainable green energy transition for our partners in the energy, telecommunications and industrial sectors, primarily in Finland and the Baltic countries. A prime example of this is the European patent granted by the European Patent Office for the gravity-based base solution we developed for offshore wind power plants. During the rest of the year, we will focus on completing the strategic assessment we announced in June, and on sharpening our strategy for the selected core businesses, improving the company’s profitability and increasing shareholder value. I would like to thank everyone at Enersense for an encouraging third quarter. I would also like to take this opportunity to thank Juha Silvola, who led Enersense as its interim CEO for almost the entire third quarter and now serves as the head of the Power and Connectivity segments. My thanks also go to our customers, partners and investors. With determination, Enersense will continue to focus on serving its customers and further developing its operations in line with its strategic guidelines. Kari Sundbäck CEO (Q3/2024 Business Review, 28.10.2024)
