Record revenues, slightly lower profitability, but solid strategic development.
Head Energy reports preliminary 2023 revenues of mNOK 1.208, up 23% compared to 2022-revenues. 2023-profit margins are lower than in 2022, primarily due to weaker margins in the Building & Infrastructure segment and launch of new entities.
The preliminary 2023 figures show an EBITDA-margin of 4,2%, down from 5,1% in 2022. The margin drop is due to lower margins in the Construction & Infrastructure segment, limited margins for newly acquired businesses, introduction of several new entities and higher employer’s tax in Norway.
The new entities require some time to reach satisfactory margins and the recently acquired entities are somewhat hampered by integration costs in 2023. The operating result (EBITDA) is in 2023 identical to the 2022 result, measured in Norwegian currency (mNOK 51).
The year-end 2023 orderbook equals a record mNOK 1.475, up approximately mNOK 325 compared to year-end 2022.
The orderbook growth reflects an overall positive market situation and satisfactory demand in all of Head Energy’s market segments – the largest uncertainty is related to the Building & Infrastructure segment. Head Energy has used the market uncertainty to increase exposure to the Building & Infrastructure segment, and the Renewable segment, with staff increases, business development and strategic acquisitions, in line with adopted strategy. The Board of Directors of Head Energy believes in the long-term value creation potential in these segments.
The operations in Denmark and Sweden develop positively, strategically, and financially. The Swedish operation is in a growth phase, whereby volume, quality and market share are prioritized over margins.
In total, Head Energy expects continued revenue growth in 2024, and somewhat higher margins, and not the least continued strategic progress and increased market shares.
Bergen, 7 Marc 2024
Torbjørn Kvalsund,
CFO Head Energy Group