Meriaura Group Plc: Business Review for January–March 2024
Meriaura Group Plc Business review, insider information
3 May 2024 at 7.30 am (CEST)
Meriaura Group Plc’s business review for January–March
2024
The Group’s key figures for January–March
2024
- Revenue in January–March amounted to EUR 17.9 million
(January–March 2023: EUR 16.2 million).
- EBITDA was EUR 1.2 million (EUR 1.5 million), or 6.7% of
revenue.
- The operating result (EBIT) was EUR -0.2 million (EUR 0.2
million), or -1.0% of revenue.
- The net result for January–March was EUR -0.5 million (EUR -0.1
million), or -2.6% of revenue.
KIRSI SUOPELTO, CEO OF THE MERIAURA GROUP:
“The first quarter of 2024 was challenging for both marine
logistics and solar power installations as a result of harsh ice
conditions, snow loads and labour market disturbances in Finland.
These caused extra work and slowed down transport, which reduced
operational efficiency and performance.
Our revenue for January–March was EUR 17.9 million, compared
with EUR 16.2 million in the corresponding period in the previous
year. Revenue was increased mainly due to the solar heat system
delivery of Renewable Energy in Germany. Marine Logistics’ revenue
slightly decreased from the previous year and was EUR 15.9 million.
Group EBITDA decreased slightly year-on-year and was EUR 1.2
million, or 6.7% of revenue.The ice conditions and strikes mainly
had a negative impact on the revenue and result of bulk transport.
One of our two deck cargo ships specialising in project shipments
operated in the Mediterranean during the period, and the
utilisation rates of our deck cargo ship operating in the Baltic
Sea also remained good. The proportion of project shipments was
slightly higher than usual in the first quarter. In the middle of
the period, we rented a new deck cargo ship in response to our
spring and early summer order backlog.
The cold winter and strikes also hampered solar power
installations. Because of the weather conditions, installation was
largely not possible until late March, after which the work was
slowed down by delays in the delivery of installation materials.
However, the installation of the solar thermal plant to be
delivered to Bad Rappenau, Germany, has progressed as planned, and
the construction of the field started in March.
After the review period, we announced
the acquisition of two new vessels and significant orders received
by Renewable Energy. In April, Meriaura Oy signed an agreement on
the acquisition of two Eco Trader cargo vessels from Bodewes
International Shipbuilding B.V. in the Netherlands. Running on
bio-oil, the vessels are designed to be energy efficient and
generate as little emissions as possible. They will be built in the
Netherlands and handed over to Meriaura in January and December
2026. The value of the investment is around EUR 34 million.
In addition, in April, we disclosed an
agreement on a turnkey delivery of a solar thermal plant to
Palau-del-Vidre in France. The plant will provide heat to the
greenhouses of Les Serres Vermeil SARL, which grows organic
vegetables, and will also be our first delivery to this customer
segment. The EUR 1.7 million project has been developed in
collaboration with Eiffage Energie Systèmes – Cogénération SAS, one
of the largest construction groups in France.
On 2 May, we announced an agreement on delivery a solar thermal
plant for the district heating network operator of Lübeck in
Germany. The value of the contract between Meriaura Energy Oy and
Stadtwerke Lübeck Energie GmbH is almost EUR 5 million, and
involves the construction of a solar thermal field and a thermal
storage supplying heat to the district heating network. The plant
is scheduled to be completed at the beginning of 2025.
The continuation of the strikes into
early April and the time required for the normalisation of port
operations will also affect our operational efficiency in the
second quarter. On the other hand, we estimate that the
postponement of some transport operations until early summer
because of the strike may even out the seasonal variation.
We expect the demand for both our marine logistics services and
renewable energy solutions to continue at a good level. This is
based on our strong order backlog in both bulk transport and
project shipments, and on customers’ growing interest in
low-emission transport. In the renewable energy market, interest in
clean and low-emission forms of energy is also growing, supported
by stricter emissions reduction requirements and expectations of
lower prices for financing and lower inflation.” MERIAURA
GROUP
Basic information
The Meriaura Group has two business areas: Marine Logistics and
Renewable Energy. The Group reports each business area’s revenue,
EBITDA and operating result separately. Meriaura Group Plc operated
under the name Savosolar Plc until 31 May 2023. Meriaura Oy, which
is part of the Marine Logistics business, is a major provider of
transport for bulk cargo and demanding project deliveries in
Northern Europe. The company focuses on environmentally sustainable
marine transport services that reduce carbon emissions. The Marine
Logistics business also includes VG-EcoFuel Oy, which produces
biofuels from bio-oils and recycled oils generated as industrial
by-products.
Meriaura Energy Oy, which is part of the Renewable Energy
business, designs and delivers clean energy production systems. The
systems are built around large-scale solar thermal systems with
high-performance solar thermal collectors manufactured by the
company. The Renewable Energy business also includes Rasol Oy, a
supplier of solar power systems, which was acquired through a share
exchange in November 2023.
The seasonality of business operations
In Marine Logistics, the demand for dry cargo shipments is
usually lower in the third quarter than in the other quarters. For
this reason, the docking and maintenance of ships are scheduled for
the third quarter as far as possible. No significant docking of the
company’s own ships is scheduled for 2024. Most of Marine
Logistics’ full-year fairway dues are collected in the first
quarter, which has a negative impact on the first-quarter
result.
The Renewable Energy business consists of project business
operations, in which revenue may differ significantly between
quarters and years in accordance with project delivery phases.
Solar power systems can only be installed to a limited degree in
the winter months, as roofs are covered by snow and are
slippery.
Reporting principles
This business review has been prepared in accordance with the
Finnish Accounting Standards (FAS) by applying the same principles
as in the 2023 financial statements. The comparison figures in the
business review refer to reported figures of the corresponding
period in 2023, unless otherwise indicated. The business review has
not been audited.
BUSINESS OPERATIONS IN JANUARY–MARCH
The Meriaura Group’s revenue in
January–March increased by 10.3% and was EUR 17.9 (16.2) million.
Of its revenue, EUR 15.9 (16.0) million came from Marine Logistics
and EUR 1.9 (0.2) million from Renewable Energy. In Renewable
Energy, revenue was boosted primarily by the delivery of the solar
thermal system to Bauer Holzenergie GmbH in Germany.
The operating environment in the first quarter was challenging
for Marine Logistics as a result of harsh ice conditions and labour
market disturbances. The ice situation and strikes had a negative
impact on operational efficiency and performance in bulk transport,
in particular. The utilisation rates in project shipments remained
at a good level despite the strike.
Revenue growth was slowed down by the docking of a
time-chartered bulk vessel for almost the entire period.
Correspondingly, a new vessel was rented for project shipments in
the middle of the period. The proportion of bulk transport of
revenue was slightly smaller than before, just under two-thirds. Of
this, around two-thirds consisted of contract transport, and
one-third consisted of spot shipments. Project shipments by deck
cargo ships accounted for slightly more than one-third of Marine
Logistics’ revenue.
In Renewable Energy, the delivery of the solar thermal system to
Bauer Holzenergie has progressed as planned. The system is
scheduled to be commissioned in the fourth quarter of 2024. The
order backlog of Rasol Oy’s solar power systems has remained at a
reasonably good level, but deliveries have been slowed down by the
shortage of materials caused by strikes, as well as snow loads on
roofs. The Meriaura Group’s EBITDA in January–March was EUR 1.2
(1.5) million, or 6.7% (9.3) of revenue. Of its EBITDA, EUR 2.1
(2.5) million came from Marine Logistics and EUR -0.9 (-1.0)
million from Renewable Energy. The EBITDA was burdened, in
particular, by delays and special arrangements caused by ice
conditions, snow loads and strikes in marine logistics and solar
power installations. The operating result (EBIT) was EUR -0.2 (0.2)
million, of which Marine Logistics accounted for EUR 0.8 (1.2)
million and Renewable Energy for EUR -0.9 (-1.1) million. The
profit for the period was EUR -0.5 (-0.1) million, or -2.6% (-0.5)
of revenue. Around 90% of Marine Logistics’ annual fairway dues
were paid in the first quarter.
Cash and cash equivalents totalled EUR 8.0 (3.6) million on 31
March 2024. Equity at the end of the review period amounted to EUR
39.5 (35.6) million, and the equity ratio was 57.3% (65.1).
Key figures (FAS, unaudited)
|
(EUR 1,000) |
1–3/2024 |
1–3/2023 |
Change (%) |
1–12/2023 |
| Revenue, Group |
17,885 |
16,188 |
10.3% |
66,183 |
| Marine Logistics |
15,911 |
16,031 |
-0.7% |
62,836 |
| Renewable Energy |
1,944 |
157 |
1,138% |
3,386 |
|
Others |
|
|
|
-39 |
| EBITDA, Group |
1,193 |
1,503 |
-20.6% |
6,325 |
| Marine Logistics |
2,128 |
2,520 |
-15.6% |
10,149 |
| Renewable Energy |
-887 |
-1,017 |
12.8% |
-3,544 |
| Others |
-48 |
|
|
-280 |
|
Proportion of revenue, % |
6.7% |
9.3% |
|
9.6% |
| Operating profit/loss (EBIT),
Group |
-186 |
157 |
-218% |
1,043 |
| Marine Logistics |
811 |
1,240 |
-34.6% |
5,149 |
| Renewable Energy* |
-949 |
-1,083 |
12.4% |
-3,796 |
| Others |
-48 |
|
|
-310 |
|
Proportion of revenue, % |
-1.0% |
1.0% |
|
1.6% |
| Net profit/loss for the review
period, Group |
-458 |
-80 |
-473% |
-271 |
|
Proportion of revenue, % |
-2.6% |
-0.5% |
|
-0.4% |
* Amortisation of consolidated goodwill arising
from the parent company for Meriaura Energy Oy in connection with
the business transfer on 31 May 2023 has been eliminated in
business-specific key figures within the Renewable Energy
business.
SIGNIFICANT EVENTS AFTER THE REVIEW PERIOD
After the review period on 11 April 2024, Meriaura Group Plc
published the notice of the Annual General Meeting, which will be
held in Helsinki on 3 May 2024.
On 15 April 2024, Meriaura Group announced that Meriaura Oy,
which is part of the Group, had signed an agreement on the
acquisition of two Eco Trader cargo vessels from Bodewes
International Shipbuilding B.V. in the Netherlands. The value of
the acquisition is around EUR 34 million. The vessels will be built
in the Netherlands and handed over to Meriaura in January and
December 2026. Of the investment, 20% is self-financed, and 80% is
financed by debt. The Eco Trader vessels ordered are 105 metres
long, with a capacity of 6,750 tonnes, in ice class 1A. They are
designed to generate as little emissions as possible. The vessels
can be operated with biofuel produced from recycled raw material by
Meriaura’s subsidiary VG-EcoFuel Oy. In addition to using renewable
fuel, emission reductions are achieved through, for example, hull
optimisation and more efficient engine technology supplied by
Wärtsilä.Eco Trader vessels are around 30% larger than Ecocoaster
vessels. This responds to market and customer needs, and the larger
vessel size also improves economic efficiency and reduces the
environmental load caused by transport. The International Maritime
Organisation (IMO) is aiming for carbon-neutral shipping by around
2050. Meriaura’s climate strategy is aiming for carbon neutrality
in the 2030s.
On 15 April 2024, Meriaura Group announced that Meriaura Energy
Oy had signed an agreement on a turnkey delivery of a solar thermal
plant to Les Serres Vermeil SARL, a producer of organic vegetables
in Palau-del-Vidre, France. The project, worth around EUR 1.7
million, includes the construction of a 5,800 m2 solar thermal
field, which will produce heat for a greenhouse owned by Serres
Vermeil.The solar thermal plant will reduce carbon dioxide
emissions from Serres Vermeil’s greenhouse operations. The project
has been developed in collaboration with Eiffage Energie Systèmes –
Cogénération SAS, which is part of the Eiffage Group, a French
construction and infrastructure group. The construction of the
plant is scheduled to start in 2024 and be completed at the
beginning of 2025.
On 25 April 2024, the company announced a conditional decision
to sell a minority share in Meriaura Oy to Meriaura Invest Oy. If
implemented, the transaction will offset Meriaura Invest’s loan
receivable of EUR 4.4 million from Meriaura Group Plc. According to
the company’s current estimate, this could correspond to
approximately 15-25% ownership of Meriaura. The decision is
conditional on the approval of the new Board of Directors to be
elected at Meriaura Group’s Annual General Meeting on 3 May 2024.
The loans have been used to enable the delivery of the Bad Rappenau
project and cover operating costs. The unsecured loans are long
term at an annual interest rate of 6%. In accordance with the terms
and conditions of the transaction, Meriaura Group will have the
right to redeem the Meriaura shares at their original purchase
price by the end of 2024. The acquisition will strengthen the
Group’s balance sheet and improve opportunities to expand the
funding base in the future. The arrangement will also contribute to
Meriaura’s newly announced vessel investment ensuring compliance
with the ownership permanence requirement (‘change of control’) for
its financing.In addition, a shareholder agreement will be drawn up
between Meriaura Group and Meriaura Invest on the ownership rules
applicable to Meriaura. As part of the arrangement, Meriaura Invest
will also undertake to guarantee the project funding that Meriaura
Energy will apply for.
On 2 May 2024, Meriaura Group announced that Meriaura Energy Oy
has signed a contract with Stadtwerke Lübeck Energie GmbH for the
turn-key delivery of a solar thermal plant in Lübeck, Germany. The
contract, valued at almost EUR 5 million, involves the construction
of a solar thermal field of approximately 12,000 m2 in area and a
thermal storage supplying heat to the district heating
network. In accordance with the agreement, the execution of
the project will start immediately, but the construction work of
the facility in Germany can only start after the customer receives
a building permit. The solar thermal plant is scheduled to be
completed at the beginning of 2025.
ANNUAL GENERAL MEETING AND FINANCIAL REPORTING IN
2024The Annual General Meeting will be held on 3rd May
2024. The half-year report for January–June will be published on 22
August 2024. The business review for July–September will be
published on 31 October 2024.The financial reports will be
published in Finnish and English.
MERIAURA GROUP PLC Board of Directors
More information: Kirsi Suopelto, CEO Tel. +358
50 560 2349 Email: firstname.lastname@meriaura.com
This company release contains information that Meriaura Group
Plc is required to disclose under the Market Abuse Regulation
(MAR). The company release was submitted for publication on 3 May
2024 at 7.30 am (CEST) by the aforementioned person.
Meriaura Group in brief
Meriaura Group has two business areas: Marine Logistics and
Renewable Energy.
Marine Logistics business is carried out by Meriaura Ltd, which
is a major provider of transport for bulk cargo and demanding
project deliveries in Northern Europe, especially in the Baltic Sea
and North Sea regions. The company provides its customers with
competitive and low-emission marine transport services, based on
long-term affreightment agreements, modern fleet, and active
development of its operational sustainability. In addition,
Meriaura has a strong market position in the marine logistics in
renewable energy construction projects.
The Marine Logistics business also includes VG-EcoFuel Ltd which
produces biofuels from bio-oils and recycled oils generated as
industrial by-products.
The Renewable Energy business focuses on comprehensive clean
energy systems. Meriaura Energy Ltd designs and delivers clean
energy production systems as comprehensive deliveries for
industrial use and district heating. The energy production is based
on large-scale solar thermal systems implemented using
high-performance solar thermal collectors manufactured by the
company. The Renewable Energy business also includes Rasol Ltd,
specialised in delivering high-quality solar power systems for real
estates, companies and solar parks.
Meriaura Group Plc’s shares are listed on Nasdaq First North
Growth Market Sweden under the symbol MERIS and on Nasdaq First
North Growth Market Finland under the symbol MERIH.
www.meriauragroup.com
The company’s Certified Adviser is Augment Partners AB,
info@augment.se, tel. +46 8 604 22 55.
- Meriaura Group Q1-2024_2024-05-03-EN