Vow ASA's Turnaround: Q3 2024 Results Unveiled
Tuesday, Nov 26, 2024 1:30 am ET
3min read Vow ASA, a Norwegian technology company focused on preventing pollution and converting waste into valuable resources, has reported its third-quarter 2024 results, marking a significant turnaround for the company. The company's revenues increased by 5.0% to NOK 267.4 million compared to the same period last year, while EBITDA before non-recurring items reached NOK 18.4 million, resulting in an EBITDA margin of 6.9%. This is a substantial improvement from the negative NOK 15.5 million EBITDA margin in Q3 2023.
The company's cost reduction programs have been a key driver of its improved financial performance, with estimated annual savings of NOK 40-50 million compared to full-year 2023. Vow ASA has successfully implemented streamlined organization processes, enhanced gross margins in projects, and achieved cost savings, leading to three consecutive quarters of positive EBITDA.
Vow ASA's Maritime Solutions segment has shown consistent performance, with revenues remaining stable at NOK 93.0 million in the third quarter of 2024. EBITDA before non-recurring items improved significantly, from negative NOK 15.1 million in Q3 2023 to positive NOK 13.0 million in Q3 2024. This improvement is driven by the growing cruise market, with fleets being renewed and expanded, leading to a large and growing pipeline of potential newbuild and retrofit contracts for Vow. The company's recent win of a second cruise newbuild contract, valued at EUR 14.5 million, further solidifies its position in the cruise market.
The Industrial Solutions segment grew its revenues by 10.1% compared to Q3 2023, reaching NOK 121.9 million in the quarter. While gross profit was reduced year-over-year, the segment's EBITDA before non-recurring items margin improved. This indicates a potential shift in the segment's cost structure, which could bode well for future profitability. The order backlog currently stands at NOK 1,103 million, a 1.8% increase from the previous year, indicating a strong pipeline of projects for the Industrial Solutions segment.
In conclusion, Vow ASA's Q3 2024 results indicate a strong turnaround for the company, driven by cost reduction programs and the growth in the cruise market. The company's focus on converting waste into valuable resources and its position in the cruise market have contributed to its improved financial performance. As Vow ASA continues to execute on its cost reduction programs and capitalize on market opportunities, investors should monitor the company's progress and assess the sustainability of its improved EBITDA margin.
The company's cost reduction programs have been a key driver of its improved financial performance, with estimated annual savings of NOK 40-50 million compared to full-year 2023. Vow ASA has successfully implemented streamlined organization processes, enhanced gross margins in projects, and achieved cost savings, leading to three consecutive quarters of positive EBITDA.
Vow ASA's Maritime Solutions segment has shown consistent performance, with revenues remaining stable at NOK 93.0 million in the third quarter of 2024. EBITDA before non-recurring items improved significantly, from negative NOK 15.1 million in Q3 2023 to positive NOK 13.0 million in Q3 2024. This improvement is driven by the growing cruise market, with fleets being renewed and expanded, leading to a large and growing pipeline of potential newbuild and retrofit contracts for Vow. The company's recent win of a second cruise newbuild contract, valued at EUR 14.5 million, further solidifies its position in the cruise market.
The Industrial Solutions segment grew its revenues by 10.1% compared to Q3 2023, reaching NOK 121.9 million in the quarter. While gross profit was reduced year-over-year, the segment's EBITDA before non-recurring items margin improved. This indicates a potential shift in the segment's cost structure, which could bode well for future profitability. The order backlog currently stands at NOK 1,103 million, a 1.8% increase from the previous year, indicating a strong pipeline of projects for the Industrial Solutions segment.
ASA
Date | Total Revenue YoY% | Total Revenue(USD) |
|---|---|---|
| 2020 Q4 | -- | -- |
| 2021 Q1 | -- | -- |
| 2021 Q2 | -- | -- |
| 2021 Q3 | -- | -- |
| 2021 Q4 | -- | -- |
| 2022 Q1 | -- | -- |
| 2022 Q2 | -- | -- |
| 2022 Q3 | -- | -- |
| 2022 Q4 | -- | -- |
| 2023 Q1 | -- | -- |
| 2023 Q2 | -- | -- |
| 2023 Q3 | -- | -- |
Name |
|---|
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
| Asa GoldASA |
In conclusion, Vow ASA's Q3 2024 results indicate a strong turnaround for the company, driven by cost reduction programs and the growth in the cruise market. The company's focus on converting waste into valuable resources and its position in the cruise market have contributed to its improved financial performance. As Vow ASA continues to execute on its cost reduction programs and capitalize on market opportunities, investors should monitor the company's progress and assess the sustainability of its improved EBITDA margin.
