NKT CEO Alexander Kara says:
- I am satisfied to see revenue and earnings increase in Q1 2020 based on positive development in all three business lines. I am also very pleased that in May we booked our largest high-voltage DC order ever, getting a major part of the SuedOstLink project which underlines our position as a key partner in the green transformation of Germany. NKT Photonics recorded lower revenue and earnings in Q1 2020 as performance was negatively impacted by the coronavirus pandemic.
Increased revenue and earnings driven by all three business lines
NKT generated revenue (in std. metal prices) of EUR 240.3m in Q1 2020, equal to organic growth of 19%. The revenue measured in market prices was EUR 318.4m. The increased revenue combined with improved production output and satisfactory cost focus improved operational EBITDA to EUR 10.2m. The increased revenue and earnings compared to Q1 2019 was driven by all three business lines. The coronavirus pandemic had only limited impact on the financial performance in the quarter.
After the balance sheet date, NKT was awarded its largest order in history amounting to approx. EUR 500m for the high-voltage project SuedOstLink in Germany. The high-voltage order backlog, which did not include the SuedOstLink award, totalled EUR 1.24bn (EUR 1.11bn in std. metal prices) at end-Q1 2020, approx. EUR 130m lower than at end-2019. Progress continued for several tenders across market segments and geographies and a number of project awards are expected in the market over the next few months including additional awards of the German high-voltage corridor projects.