Enersense International Plc’s January-September 2021 Business Review: Guidance remains unchanged – operations are progressing in line with the strategy

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