DOVRE GROUP TRADING STATEMENT JANUARY 1 – MARCH 31, 2024
Dovre Group
Plc
Stock exchange
release
April 25, 2024, at 9.15 a.m.
DOVRE GROUP TRADING STATEMENT JANUARY 1 – MARCH 31,
2024
Significant write-down of a single renewable project led
to a negative operating profit
Dovre Group Plc issues today a trading statement for the
three months ended on March 31, 2024. The figures
presented in this trading statement are not audited. Last year’s
corresponding period in parentheses.
January – March 2024
- Net sales EUR 42.3 (45.8) million – decrease 7.6%
- Project Personnel: net sales EUR 25.2 (24.8) million – increase
1.7%
- Consulting: net sales EUR 3.6 (5.1) million – decrease
29.6%
- Renewable Energy: net sales EUR 13.5 (15.9) million - decrease
15.1%
- EBITDA EUR -4.6 (1.9) million
- Operating result EUR -4.9 (1.7) million
- Result before tax EUR -5.1 (1.5) million
- Result for the shareholders of the parent company EUR -2.4
(1.0) million
- Earnings per share EUR -0.023 (0.010)
- Net cash flow from operating activities EUR -1.9 (4.3)
million
Dovre Group’s profitability for the period was clearly negative
due to a significant write-down (5.8 million euros) of a single
renewable energy project. The project was technically successful
but exceeded the cost budget considerably. Corrective actions have
been taken and Suvic expects the remainder of the 2024 to clearly
exceed the comparison period of 2023 in both revenue and EBIT.
Outlook for 2024
Dovre Group’s net sales are expected to be in the range of 185 -
210 MEUR and the Operating Profit (EBIT) is expected to be in the
range of 2 - 4 MEUR.
The lower than 2023 EBIT is due to the above mentioned
significant one-time write-down of a single renewable project in
Q1.
Dovre`s Project personnel and Consulting business areas are
expected to decline in both revenue and EBIT compared to 2023 due
to the completion of a major project in Canada and somewhat slower
activity in the Norwegian public sector.
ARVE JENSEN, CEO:
In Q1 2024, Dovre Group posted total net sales of EUR 42.3 million,
reflecting a 7.6% decrease compared to the same period in 2023. Our
Project Personnel segment continued to perform well, reporting
sales of 1.7% higher than the previous year. By contrast, the
Consulting segment reported a 29.6% decrease, while Renewable
Energy experienced a 15.9% decrease in net sales during Q1
2024.
Our Project Personnel business area remained highly active. We
also successfully implemented restructuring the EMEA unit in
Finland, consolidating the essential parts of project personnel to
Norway. The objective was to improve the profitability and quality
of service by centralizing operations in Norway and streamlining
the remaining operations in Finland.
The Consulting business area has been negatively impacted by a
slower market in the public sector in Norway and Norwegian
legislation on hiring practices. Meanwhile, the Finnish market
remains stable and profitable following the restructuring.
In the Renewable Energy business area, our subsidiary Suvic has
had a very busy start of the year due to the commencement of the
next phases of the two Swedish windfarm projects (Vitberget and
Storhöjden) alongside the existing projects in Finland.
As informed in the recent stock release, Outlook for 2024, Suvic
has decided to write down a significant loss of 5.8 MEUR for one
project. Although the project was technically successful, it
exceeded the cost budget considerably. Corrective actions have
therefore been taken and Suvic expects the remainder of the year to
clearly exceed the comparison period for 2023.
NET SALES
In Q1, Dovre Group’s net sales decreased by 7.6% to EUR 42.3
(45.8). Project Personnel accounted for 60% (54), Consulting for 8%
(11) and Renewable Energy for 32% (35) of the Group’s net
sales.
Project Personnel’s net sales increased by 1.7% to EUR 25.2
(24.8) million. Net sales for Consulting decreased by 29.6% to EUR
3.6 (5.1) million. Net sales for Renewable decreased by 15.1% to
EUR 13.5 (15.9) million.
| Net sales by reporting
segment |
1-3 |
1-3 |
Change |
1-12 |
| EUR
million |
2024 |
2023 |
% |
2023 |
| Project Personnel |
25,2 |
24,8 |
1,7 |
108,8 |
| Consulting |
3,6 |
5,1 |
-29,6 |
16,5 |
|
Renewable Energy |
13,5 |
15,9 |
-15,1 |
71,4 |
| Group total |
42,3 |
45,8 |
-7,6 |
196,7 |
PROFITABILITY
Dovre Group’s profitability for the period was clearly negative
due to the above-mentioned significant write-down (5.8 million
euros) of a single renewable energy project.
The Group’s EBITDA was 4.6 EUR million negative (1.9 MEUR
positive)
The Group’s operating profit was 4.9 EUR million negative (1.7 MEUR
positive)
Project Personnel’s operating profit was EUR 0.7 (1.2) million,
Consulting’s operating profit was EUR 0.3 (0.6) million and
Renewable Energy’s operating loss was 5.7 (0.2 MEUR positive)
million.
The operating loss of the Group’s Other functions was EUR 0.2
(0.2) million.
| EBITDA |
1-3 |
1-3 |
Change |
1-12 |
| EUR
million |
2024 |
2023 |
% |
2023 |
| Project Personnel |
0,8 |
1,3 |
-35,8 |
5,3 |
| Consulting |
0,3 |
0,6 |
-39,6 |
1,7 |
| Renewable Energy |
-5,6 |
0,3 |
|
2,0 |
| Other functions |
-0,2 |
-0,2 |
19,3 |
-0,7 |
|
Unallocated *) |
0,0 |
0,0 |
0,0 |
0,0 |
| Group total |
-4,6 |
1,9 |
|
8,4 |
| |
|
|
|
|
| Operating result
(EBIT) |
1-3 |
1-3 |
Change |
1-12 |
| EUR
million |
2024 |
2023 |
% |
2023 |
| Project Personnel |
0,7 |
1,2 |
-40,5 |
4,9 |
| Consulting |
0,3 |
0,6 |
-39,7 |
1,7 |
| Renewable Energy |
-5,7 |
0,2 |
|
1,8 |
| Other functions |
-0,2 |
-0,2 |
18,7 |
-0,7 |
|
Unallocated *) |
-0,1 |
-0,1 |
-0,5 |
-0,3 |
| Group total |
-4,9 |
1,7 |
|
7,4 |
| |
|
|
|
|
|
*Unallocated expenses include amortization of customer
agreements and relations.
PERSONNEL
The Dovre Group employed an average of 812 people (797) during
the review period.
On March 31, 2024, Dovre Group employed 837 (807) people, 686
(656) of whom were employed by Project Personnel, 80 (106) by
Consulting, 68 (43) by Renewable Energy and 3 (2) by Other
Functions.
| Average number of
personnel |
1-3 |
1-3 |
Change |
1-12 |
| Number
of persons |
2024 |
2023 |
% |
2023 |
| Project Personnel |
669 |
646 |
3,6 |
686 |
| Consulting |
80 |
106 |
-24,8 |
97 |
| Renewable Energy |
60 |
43 |
39,5 |
50 |
| Other
functions |
3 |
2 |
50,0 |
2 |
| Group total |
812 |
797 |
1,9 |
835 |
| Personnel at
period-end |
31 Mar |
31 Mar |
Change |
31 Dec |
| Number
of persons |
2024 |
2023 |
% |
2023 |
| Project Personnel |
686 |
656 |
4,6 |
679 |
| Consulting |
80 |
106 |
-24,5 |
84 |
| Renewable Energy |
68 |
43 |
58,1 |
54 |
| Other
functions |
3 |
2 |
50,0 |
3 |
| Group total |
837 |
807 |
3,7 |
820 |
CASH POSITION
On March 31, 2024, the Group’s net debt was EUR 3.8 (-6.7)
million. The Group’s cash and cash equivalents totaled EUR 11.3
(13.5) million. The Group’s interest-bearing liabilities were EUR
15.1 (6.9) million, a total of EUR 8.1 (5.8) million of which were
current and EUR 7.0 (1.0) million non-current.
In Q1, net cash flow from operating activities was EUR -1,9
(4.3) million, which includes EUR 2.9 (3.5) million decrease in
working capital. The decrease in working capital is primarily due
to Renewable Energy business.
OTHER EVENTS DURING THE REVIEW PERIOD
Suvic AB, a subsidiary of Suvic Oy, has received a
Notice to Proceed for the Storhöjden wind farm
Suvic has received a Notice to Proceed from the customer for the
Storhöjden wind farm and will start the actual construction work in
Sweden. The work will be carried out by Suvic AB, a wholly owned
Swedish subsidiary of Suvic Oy.
With this notification, the conditional contract for Storhöjden
announced on 20.12.2023 thus becomes a BoP contract.
Suvic has already completed some design, field surveys and
preliminary road alignments in Storhöjden as part of the early
works agreement. "The actual work will start with topsoil removal,
site mobilisation and quarrying, after which we will build the
lifting fields and roadways. The foundations and cabling for the
wind turbines are planned to be completed by December 2024," says
Olli Niemelä, COO of Suvic's Swedish site
operations, explaining the construction schedule for the park.
The park of 22 wind turbines in Kramfors municipality is part of
the High Coast project. The BoP is being made with Adalen and HC
Wind – SPVs launched by Renewable Power Capital Ltd. (RPC).
Headquartered in London, RPC is backed by CPP Investment Board and
was founded in 2020 to develop, construct, own and operate
renewable energy and industrial scale storage projects across
Europe.
Tricon and Suvic to build a heat pump plant for Fortum
in Espoo's Hepokorpi data centre area.
A Working Association of Tricon and Suvic is building a heat
pump plant recovering waste heat for Fortum's district heating
network in the future data centre area of Espoo. Together with the
previously announced heat pump plant in the Kolabacken data centre
area of Kirkkonummi, the project will create an unprecedented scale
of waste heat utilization.
The heat pump facility at the Hepokorpi data center utilizes
waste heat and ambient air. It includes a recovery building housing
heat pumps for heat recovery from the data center, air-to-water
heat pumps, and electric boiler. The client for the project is
Fortum Power and Heat Ltd.
"The Hepokorvi data centre is optimally located close to the
district heating network. It is fantastic that we get to build both
Fortum's Kirkkonummi and Espoo heat pump plants. The utilisation of
waste heat complements our service portfolio for the construction
of carbon dioxide-free energy production, which also includes wind
power and solar power plants," says Ville Vesanen, CEO of Suvic,
about the project.
The waste heat from data centres can replace a significant share
of the fossil fuel based heat production in Espoo's district
heating network area. In practice, the heat from the data centre's
indoor air is transferred through a heat exchanger to water, which
flows in a closed loop to the heat pump plant. Heat is transferred
from the plant as required to the district heating system and to
thousands of homes and other users. The aim is to produce heat from
the 2025–2026 heating season onwards.
"The projects in Espoo and Kirkkonummi promote decarbonization,
and at the same time, households, services, and businesses receive
competitive, clean, and reliable electric-based district heating.
Fortum's district heating in Finland will be carbon-free by 2024
and carbon-neutral before 2030," summarizes the benefits of the
project Teemu Nieminen, Project Director from Fortum's Heating and
Cooling Business.
"The site will be ready for installation in spring 2025. The
construction of the Hepokorvi heat pump plant will be somewhat more
demanding than the construction of the similar plant in Kolabacken,
Kirkkonummi. This is due to the soil, the size of the Hepokorvi
site and its location between the power lines and Ring III," says
Jukka Kallio of Suvic, project manager for both projects.
In Espoo, April 25, 2024
DOVRE GROUP PLC
BOARD OF DIRECTORS
For additional information, please contact:
Dovre Group Plc
Arve Jensen,
CEO
tel. +47 90 60 78 11
arve.jensen@dovregroup.com
Hans Sten, CFO
tel. +358 20 436 2000
hans.sten@dovregroup.com
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