The following is a summary of the Vow ASA (SSHPF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Vow's Q1 2024 revenues remained consistent with the previous year's first quarter. The gross margin increased to 31.5% from 25.3%, and EBITDA expanded to a margin of 2.4%, a significant improvement from the previous year's negative 6%.
Operating profit was reported as negative NOK4.7 million, while net financial items amounted to negative NOK12.3 million. The increase in depreciation expenses is due to the conclusion of several R&D projects.
Liquidity was reported as NOK44 million, with the company aiming to rebound to an EBITDA margin of 15% from 2025.
Business Progress:
Vow is experiencing growth in the cruise industry segment, with ship owners renewing their fleet and placing new orders for larger, more advanced systems. Several R&D and business development projects have successfully concluded, strengthening Vow's market position.
Vow is involved in three extensive industry projects close to reaching financial investment decisions. They anticipate total gains of EUR120 million from the first stages of the projects.
The company has secured a variety of contracts and is negotiating tenders for 29 new builds. In an attempt to increase financial efficiency, a comprehensive cost improvement program has been put in place, with active bidding for contracts up to EUR200 million.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
