Svitzer Sees Strong Start to 2024

Svitzer A/S (Svitzer) has published its trading statement for Q1 2024, showing a strong start to 2024.

Q1 2024 highlights (Q1 2023 in brackets)
• Revenue: DKK 1,555 million (DKK 1,424 million)
• Revenue growth in constant exchange rates: 11% (12%)
• Adjusted EBITDA: DKK 479 million (DKK 420 million)
• Adjusted EBITDA margin: 30.8% (29.5%)
• Gross CAPEX: DKK 174 million (DKK 118 million)
• Free cash flow: DKK 196 million (DKK 215 million)

Svitzer’s growth journey continued in the first quarter, where commencement of terminal towage contracts in Europe and Australia secured in the second half of 2023 contributed to revenue growth of 11% in constant exchange rate.

In the first quarter of 2024, Svitzer was awarded a new contract to service an FSRU (Floating Storage Regasification Unit) in Santos, Brazil. In April 2024, Svitzer extended an existing agreement with Smit-Lamnalco to continue providing towage service delivery on behalf of Smit-Lamnalco in four ports in Australia for a four-year period until 31 August 2028. Under the extended agreement, Svitzer will continue to charter six vessels from Smit.

CEO Kasper Friis Nilaus, said: “We are off to a good start of the year with a strong financial and operational performance. Our Q1 revenue growth of 11% in constant exchange rates was driven by a combination of an increase in number of tug jobs, tariff increases in line with inflation, and the revenue effect of Terminal Towage contracts commenced in 2023.”

“The expected listing of Svitzer on Nasdaq Copenhagen on 30 April will be a landmark event in our 190-year history and provides a solid foundation for executing on our strategy and continuing to build on our position as a leading global port and terminal infrastructure provider. Organisationally, financially, and operationally, we are ready for a future as a stand-alone listed company.”

Full-year 2024 outlook
The full-year 2024 outlook is maintained:
• Revenue: 3.5-5.0% growth (constant exchange rates)
• Adjusted EBITDA: DKK 1,700-1,800 million (excluding separation and listing costs related to the demerger from A.P. Moller – Maersk)
• Gross CAPEX: DKK 900-1,100 million
Source: Svitzer