News Tag: Q3

The figures in this release are unaudited. The figures in brackets refer to the comparison period (the corresponding period of the previous year), unless otherwise stated. All figures and amounts have been rounded off from exact figures, which may result in minor inaccuracies in additions or subtractions.

JULY–SEPTEMBER 2023

• Revenue EUR 94.2 (64.4) million, 46.2% year-on-year.
• EBITDA EUR 3.9 (4.0) million, EBITDA margin 4.2 (6.3)%.
• There were no items affecting comparability in the third quarter. Adjusted EBITDA for the comparison period was EUR 4.3 million, or 6.6% of revenue.
• Operating profit EUR 1.6 (1.9) million, profit margin 1.7 (3.0)%.
• Undiluted earnings per share EUR -0.05 (0.08).

JANUARY–SEPTEMBER 2023

• Revenue EUR 255.5 (184.4) million, 38.5% year-on-year.
• EBITDA EUR 7.0 (8.8) million, EBITDA margin 2.8 (4.8)%.
• Adjusted EBITDA EUR 7.5 (9.3) million, or 2.9 (5.0)% of revenue.
• Operating profit EUR -0.1 (2.4) million, profit margin 0.0 (1.3)%.
• Undiluted earnings per share EUR -0.39 (-0.23).
• The order backlog stood at EUR 511 (385) million at the end of September.
• On 22 August 2023 Enersense announced that it had signed with Telia Finland a one-year extension agreement on the provision of telecommunications network field services. The value of the agreement is EUR 25 million.

Updated guidance for the 2023 financial period

In 2023, Enersense’s revenue is expected to be over EUR 330 million and adjusted EBITDA in the range of EUR 12–18 million.

Despite the general economic uncertainty, the market situation in Enersense’s business areas has continued to be good in the beginning of the year and the favourable development is expected to continue. The company’s strong order backlog gives a good basis for increasing revenue. We have managed to accelerate the wind power portfolio development and we assume that the same development continues. Profitability will be impacted by the implementation of the new ERP-system as well as on-going investments in developing the offshore wind power business and acceleration of onshore wind power project development. At the end of 2022 the company completed an offering of EUR 26 million convertible bond in order to implement these investments.

Earlier guidance, issued on 8 May 2023:

In 2023, Enersense’s revenue is expected to be over EUR 300 million and adjusted EBITDA in the range of EUR 12–18 million.

Despite the general economic uncertainty, the market situation in Enersense’s business areas has continued to be good in the beginning of the year and the favourable development is expected to continue. The company’s strong order backlog gives a good basis for increasing revenue. We have managed to accelerate the wind power portfolio development and we assume that the same development continues. Profitability will be impacted by the implementation of the new ERP-system as well as on-going investments in developing the offshore wind power business and acceleration of onshore wind power project development. At the end of 2022 the company completed an offering of EUR 26 million convertible bond in order to implement these investments.

Key figures

Accounting of wind power projects was changed from the beginning of 2023. Comparison figures for 2022 are reported according to the new accounting principle.

 

	7–9/2023	7–9/2022	1–9/2023	1–9/2022	1–12/2022
Revenue (EUR 1,000)	94,168	64,390	255,491	184,419	281,997
EBITDA (EUR 1,000)	3,945	4,047	7,049	8,844	12,210
EBITDA, %	4.2	6.3	2.8	4.8	4.3
Adjusted EBITDA (EUR 1,000)	3,945	4,255	7,459	9,303	13,654
Adjusted EBITDA, %	4.2	6.6	2.9	5.0	4.8
Operating profit (EUR 1,000)	1,597	1,929	-51	2,385	3,479
Operating profit, %	1.7	3.0	0.0	1.3	1.2
Result for the period (EUR 1,000)	-1,129	1,169	-6,793	-4,258	-9,835
Equity ratio, %	26.8	39.0	26.8	39.0	28.8
Gearing, %	72.7	19.6	72.7	19.6	19.0
Return on equity, %	-1.9	2.9	-11.5	-10.4	-17.5
Earnings per share, undiluted, EUR	-0.05	0.08	-0.39	-0.23	-0.57
Earnings per share, diluted, EUR	-0.05	0.08	-0.39	-0.23	-0.57

President and CEO Jussi Holopainen

“Enersense’s revenue has grown strongly in 2023. This trend continued in the third quarter, and the Group’s revenue in January–September 2023 grew to EUR 255.5 (184.4) million, with an increase of 38.5% year-on-year. The order backlog remained strong and stood at EUR 511 (385) million at the end of the review period. The Group’s adjusted EBITDA was7.5 (9.3) million. In the review period, growth investments had an impact of EUR -6.3 (-3.4) million on EBITDA. EBITDA for the review period includes, in addition to adjustment items, also EUR 0.9 (4.2) million stemming from items outside the ordinary course of business. EBITDA in the comparison period increased as a result of significant sales revenue from wind power projects, too.

In the third quarter, we focused on our core activities, in which our work to improve profitability is already producing results. Our strong order backlog is keeping business volumes at a good level, which is reflected in the positive profitability trend in our core business operations, although growth investments continue to burden overall profitability.

This is particularly prominent in our Smart Industry business, where the profitability of service and project business operations has developed strongly, but investments in offshore business operations are burdening the overall profitability of the business area. After a difficult 2022, the profitability of the International Operations business area has turned clearly positive in 2023, and this trend continued in the third quarter. In the Connectivity business area, the profitability improvement programme and high volumes supported by a strong order backlog had a positive impact on profitability in the third quarter. In August, we announced that we had signed an extension agreement of EUR 25 million with Telia Finland on the provision of field services for Telia Finland’s telecommunications network. The extension agreement covers nearly all Connectivity’s services and is one of the most comprehensive agreements in Connectivity. We are very pleased that our long-term cooperation with Telia Finland continues.

In the Power business area, revenue increased markedly year-on-year, and EBITDA remained at the same level as in the third quarter of 2022. Of the core businesses, the construction of transmission networks, in particular, continued steadily. In October, we announced an extension agreement on basic maintenance services for Fingrid’s substations and power lines for 2024–2026. The extension agreement is a clear indication that the customer values our expertise and the benefits of long-term cooperation. The agreement further strengthens our position as a provider of maintenance and operation services for electricity networks in Finland. Our wind power projects progress as planned, too. In September, we sold our minority stake in the Soidinmäki wind farm. We continue to be responsible for O&M services during the operation of the wind farm under a multiyear agreement that covers the monitoring and maintenance of the substation and the electricity network. The transaction did not have a significant impact on the Power business area’s EBITDA in the third quarter of 2023. Zero-emission transport is one of the focus areas of the Group’s growth strategy. In the spring, we moved to industrial-scale production in our high-power charging stations by starting cooperation with Scanfil and we already have contracts to deliver equipment not only to Finland but also to Norway and Sweden. We see many opportunities for us in the Nordic charging market. Ramping up the electric vehicle charging solutions business continues.

Overall, our performance in the third quarter of 2023 met our expectations. Year-on-year, we are slightly behind our EBITDA in 2022, mainly because of significant revenues from wind power projects and the positive impact of corporate arrangements in the comparison period, as well as expenses related to the introduction of the new ERP system in 2023, which are somewhat higher than in 2022. Based on the strong growth during the early part of the year as well as on the order backlog that is on a good level, we have today updated our outlook for 2023 as regards to the revenue development. We expect the full-year revenue to grow over EUR 330 million. Guidance for the EBITDA remains unchanged.”

This release is a summary of Enersense’s January-September 2023 Business Review. The complete report is attached to this release as a pdf-file. It is also available on the company’s website at www.enersense.com/press-releases/reports-and-presentations/.

ENERSENSE INTERNATIONAL PLC
Tommi Manninen
SVP, Communications and Public Affairs

More information: 

Jussi Holopainen, CEO 
Tel. +358 44 517 4543 
Email: jussi.holopainen@enersense.com

Mikko Jaskari, CFO
Tel.: +358 40 053 5337​
Email: mikko.jaskari@enersense.com​

Media contacts: 
Tommi Manninen, SVP, Communications and Public Affairs 
Tel. +358 40 043 7515 
Email: tommi.manninen@enersense.com

Distribution:
Nasdaq Helsinki
Major media
www.enersense.com

This release is a summary of Enersense International Plc’s January-September 2022 Business Review. The company complies with the semiannual reporting in accordance with the Finnish Securities Markets Act and discloses business reviews for the first three and first nine months of the year, which present key information regarding the company’s financial position and development. The financial information presented in the business review is unaudited. The complete report is attached to this release as a pdf file. It is also available on the company’s website at www.enersense.com/investors.

JULY–SEPTEMBER 2022

• Revenue was EUR 64.4 (58.3) million, showing an increase of 10.5%.

• EBITDA was EUR 4.0 (2.9) million. The EBITDA margin was 6.3% (5.1)

• Adjusted EBITDA was EUR 4.3 (4.4) million, or 6.6% (7.5) of revenue.

• The operating profit was EUR 1.9 (0.4) million. The profit margin was 3.0% (0.7).

• Undiluted earnings per share were EUR 0.07 (0.01).

JANUARY–SEPTEMBER 2022

• Revenue was EUR 178.0 (173.2) million, showing an increase of 2.8 %.

• EBITDA was EUR 8.8 (10.5) million. The EBITDA margin was 5.0% (6.0).

• Adjusted EBITDA was EUR 9.3 (11.7) million, or 5.2% (6.8) of revenue.

• The operating profit was EUR 2.4 million (2.8). The profit margin was 1.3% (1.6).

• Undiluted earnings per share were EUR -0.11 (0.07).

• The order backlog stood at EUR 385 million (272) at the end of September.

• On 31 August 2022, Enersense announced an extensive strategic cooperation agreement (4 + 2 + 2 years) with Helen Oy on operation and maintenance tasks. The maximum amount of the acquisition, including the options, is EUR 200 million, of which EUR 100 million has been recognised in the order book for the third quarter.

• On 23 September 2022, Enersense announced that it had signed a business combination agreement with MBÅ Invest Oy, its second largest shareholder. Based on the agreement, MBÅ Invest will merge with Enersense.

After the review period:

• On 11 October 2022, Enersense announced that the Finnish Competition and Consumer Authority had approved a business transfer through which certain operation and maintenance services of Helen Oy will be transferred to Enersense.

• On 20 October 2022, Enersense announced that it had further specified the focus areas of its growth strategy and would focus on zero-emission transport alongside onshore and offshore wind power and solar energy. This supports the company’s long-term financial targets, which remain unchanged.

GUIDANCE FOR THE 2022 FINANCIAL PERIOD

Enersense reiterates its earlier financial guidance:

According to the company’s financial guidance, revenue is expected to be in the range of EUR 245–265 million and adjusted EBITDA EUR 6–12 million in 2022.

Key figures

President and CEO Jussi Holopainen:

“After the challenging first part of the year, we are pleased to announce that in July–September almost all our segments improved their EBITDA, and the Group’s operating profit improved from the comparison period and the second quarter of 2022. Our order backlog and the company’s cash situation improved as well.

Enersense’s revenue in January–September grew to EUR 178 (173) million, which represents an increase of 2.8% year-on-year. Revenue increased in all segments except Smart Industry, where volumes have decreased following the completion of the Olkiluoto 3 project. Due to a weak first half of the year, EBITDA in the review period was below the previous year’s level. EBITDA decreased by 15.4% and was EUR 8.8 million (10.5).

In these exceptional times, we have every reason to be satisfied with our overall performance. We succeeded in the pricing and implementation of several projects. With the inflation rate rising rapidly, we also succeeded in negotiating increases to the prices of materials with many customers for existing and new contracts.

Despite the challenging operating environment, our order backlog has developed steadily during the year. In the third quarter, our order backlog grew significantly and stood at EUR 385 (272) million at the end of September. In our Smart Industry segment, we have worked hard during 2022, building a foundation for future growth. Examples of this work include the ramp-up of Enersense Offshore and an agreement on outfitting work for two new ferries at the Rauma shipyard for TT-Line Company. An extensive strategic cooperation agreement with the energy company Helen on operation and maintenance tasks related to plants and networks was recorded in the Smart Industry segment’s order backlog in the third quarter. The strategic goal of both Enersense and Helen is to play a key role in the green transition, and this agreement enables us to contribute to Helen’s vision of achieving carbon neutrality by 2030. It is also our pleasure to welcome the operation and maintenance professionals who are transferring from Helen to Enersense!

After the end of the review period, we announced that we had further specified the focus areas of our growth strategy by focusing on zero-emission transport alongside onshore and offshore wind power and solar energy. In this area, we are seeking new business in charging solutions for electric transport, for example. In the zero-emission transport sector, our goal is to expand our role in the value chain from being an installation and service partner for companies that provide charging equipment solutions to becoming a manufacturer of charging devices, which we believe holds significant growth potential for us. We also announced that we had signed an agreement to acquire Unified Chargers Oy, a Finnish growth company manufacturing fast charging stations and high-power charging stations for electric cars. When the corporate arrangement is implemented, Enersense will be able to offer a complete range of advanced and customisable charging solutions for public sites and the needs of heavy transport, as well as smart services for charging station operations.

We are also determined to pursue our goal of energy production of our own, which involves building 600 MW of capacity for onshore wind power and 100 MW for solar power by 2027. Our subsidiary Megatuuli Oy plays a key role in achieving our goal for onshore wind power. Its current onshore wind power project portfolio (3,000 MW) enables the development of our own energy production. Megatuuli has projects in the feasibility study phase (2,000 MW) and in the permit, land use and EIA phase (1,000 MW). We will begin to report on the development of this project portfolio as part of our half-yearly reporting for the first and second half of each year.

The core of our growth strategy consists of seeking new business in onshore and offshore wind power, solar energy and zero-emission transport. However, the cost-efficiency of our basic business operations and profitable growth are, at least, equally important for us. I am very pleased with how we have succeeded in developing our operations continuously and systematically towards best practices in all sectors. It is great to see how our new operating methods have already proved to be broadly successful, and our internal development work towards our common goals continues in cooperation with our highly competent personnel. 

In September, we announced a business combination agreement through which MBÅ Invest, our second largest shareholder, will merge with Enersense. An extraordinary general meeting convened by Enersense’s Board of Directors will be held on 10 November 2022 to discuss decisions related to the merger of Enersense International Plc and MBÅ Invest Oy, among other matters. The purpose of the merger is to increase the transparency and equality of the ownership and governance, and simplify the ownership structure of Enersense. The transaction will bring MBÅ Invest’s holding better to the fore and make the executives’ true ownership in the company transparent. The transaction will also increase the management’s commitment through long-term transfer restrictions on shares. The elimination of indirect ownership is also aimed at improving the liquidity of Enersense shares.”

Pori 28 October 2022
Enersense International Plc
Board of Directors

Additional information:

Jussi Holopainen, President and CEO
Tel: +358 44 517 4543
Email: jussi.holopainen@enersense.com

Media contacts:

Tommi Manninen, SVP, Communications and Public Affairs
Tel: +358 40 043 7515
Email: tommi.manninen@enersense.com

Distribution:
Nasdaq Helsinki
Major Media
www.enersense.com

This release is a summary of Enersense International Plc’s January-September 2021 Business Review. The complete report is attached to this release as a pdf file. It is also available on the company’s website at www.enersense.com/investors.
 

July-September 2021
 

• Turnover EUR 58.3 million (48.2), +21.0% year-on-year

• EBITDA EUR 2.9 million (4.6), EBITDA margin 5.1% (9.6)

• Operating profit EUR 0.4 million (2.8), profit margin 0.7% (5.8)

• Order backlog EUR 272.0 million at the end of the third quarter (30 September 2020: 160.0 million)

• Adjusted EBITDA EUR 4.4 million (4.9), or 7.5% (10.3) of turnover

• Adjusted operating profit EUR 2.6 million (3.5), or 4.5% (7.2) of turnover

• The figures concerning the business operations that were transferred to Enersense through

the Empower acquisition are included in the Group’s figures from August 2020.

 

January-September 2021
 

• Turnover EUR 173.2 million (79.4), +118.1% year-on-year

• EBITDA EUR 10.5 million (6.0), EBITDA margin 6.0% (7.6)

• Operating profit EUR 2.8 million (3.6), profit margin 1.6% (4.5)

• Adjusted EBITDA EUR 11.7 million (6.3), or 6.8% (8.0) of turnover

• Adjusted operating profit EUR 6.1 million (4.3), or 3.5% (5.4) of turnover

• Earnings per share EUR 0.07 (0.32)

• Total number of shares 13,397,729 (30 September 2021)

• The figures concerning the business operations that were transferred to Enersense through

the Empower acquisition are included in the Group’s figures from August 2020.
 

Key indicators
 

	7–9 / 2021	7–9 / 2020	1–9 / 2021	1–9 / 2020	1–12 / 2020
Turnover (EUR 1,000)	58,271	48,168	173,200	79,407	147,460
EBITDA (EUR 1,000)	2,948	4,619	10,451	6,024	9,775
EBITDA, %	5.1	9.6	6.0	7.6	6.5
Adjusted EBITDA (EUR 1,000) *)	4,353	4,938	11,734	6,342	11,510
Adjusted EBITDA, % *)	7.5	10.3	6.8	8.0	7.8
Operating profit (1,000 EUR)	388	2,788	2,787	3,568	4,780
Operating profit, %	0.7	5.8	1.6	4.5	3.2
Adjusted operating profit (EUR 1,000) *)	2,600	3,489	6,138	4,269	7,474
Adjusted operating profit, % *)	4.5	7.2	3.5	5.4	5.1
Result for the period (EUR 1,000)	33	2,185	624	2,487	2,379
Equity ratio, %	37.0	16.6	37.0	16.6	15.7
Gearing, %	-4.7	106.1	-4.7	106.1	52.3
Return on equity, %	0.1	16.9	1.9	19.4	19.3
Earnings per share, EUR	0.01	0.22	0.07	0.32	0.27
* Reconciliation of adjusted key indicators: Note 11 The figures concerning the business operations that were transferred to Enersense through the Empower acquisition are included in the Group’s figures from August 2020.

Jussi Holopainen, CEO

“In line with our growth strategy, we are seeking growth both organically and inorganically, and we succeeded in both in the review period. The Empower integration has progressed as planned, and our joint operations have developed in accordance with the goals in all areas.

In 2021, our performance and turnover are distributed more evenly between the second, third and fourth quarters. This is due to the cyclical nature of our project business: project start-ups and progress affect how turnover and profit are distributed between the quarters. Our full-year guidance remains unchanged: turnover EUR 215–245 million, adjusted EBITDA EUR 17–20 million, and the adjusted operating profit EUR 8–11 million.

Our order backlog has increased considerably during the year. Our order backlog stood at EUR 272 million at the end of September, compared with EUR 160 million at the end of September 2020. Our order backlog has increased by 70%.

After a quiet July, the results of our segments developed moderately during the review period. The increase in the Smart Industry segment’s quotation base indicates a continued good demand. In the Power segment, the order backlog decreased year-on-year. We have maintained our profitability target, and the Power segment’s EBITDA has improved by around 500% compared with the third quarter of 2020. In the Connectivity segment, demand is slightly lower than in the previous year. The International Operations segment’s turnover increased from the first half of the year, which was due to a good order backlog and seasonal fluctuations in the Baltic countries. 

Following our transfer to the main list of the Nasdaq Helsinki, we have continued to implement our growth strategy. At the beginning of October, we acquired the share capital of Pori Offshore Constructions Ltd, a company specialising in offshore wind power. At the same time, Enersense moved up in the value chain for renewable energy production projects, from installation services to comprehensive deliveries. Pori Offshore Constructions has significant expertise in project implementation related to offshore wind power, which provides Enersense with an entirely new business opportunity. Investments of nearly EUR 800 billion are needed for the implementation of the EU strategy on offshore renewable energy by 2050.

The completed acquisitions and plans for inorganic growth in line with our strategy require a great deal from our organisation in terms of up-to-date, consistent and scalable systems, for example. We started an extensive ERP renewal project during the third quarter. 

Highly competent and enthusiastic employees play a key role in our company’s success and development opportunities. During the third quarter, two new members joined our Group Executive Team to further strengthen our expertise. Mikko Jaskari started as Chief Financial Officer of Enersense on 2 August 2021, and Hanna Reijonen as SVP, HR, on 6 September 2021. Anna Lindén, EVP, Connectivity, left the company in August, and Juha Silvola, EVP, Power, is serving as Interim EVP, Connectivity, in an acting capacity.

The energy transition and zero-emission energy solutions are progressing rapidly on many fronts in Finland and globally. This provides Enersense with plenty of opportunities now and in the future, thanks to our broad range of services.”
 

Pori 2 November 2021
Enersense International Plc
Board of Directors