Company Announcement No. 1
NKT A/S Annual Report 2019: High-voltage order backlog at an all-time high and earnings in line with the financial outlook
NKT CEO
- Our financial performance in 2019 was in line with expectations. The earnings in NKT were, however, at a too low level, and therefore I am pleased that in 2019 we booked new high-voltage orders of more than
Financial highlights
NKT | NKT Photonics | |||
EURm | Q4 2019 | 2019 | Q4 2019 | 2019 |
Revenue | 262.2* | 945.0* | 25.5 | 74.6 |
Organic growth | 16% | -10% | 15% | 10% |
Operational EBITDA | 1.2 | 15.1 | 7.2 | 14.6 |
Operational EBITDA margin | 0.5%* | 1.6%* | 28.2% | 19.6% |
* Std. metal prices
NKT: High-voltage order backlog was at an all-time high, while financial performance was negatively impacted by the reduced level of activity in Solutions as expected
The revenue (std. metal prices) in 2019 was
In 2019, progress continued on several tenders in the high-voltage market, and high-voltage projects with an aggregated value of more than
NKT Photonics: Organic growth of 10% in 2019 and increase in EBITDA
The revenue in NKT Photonics increased to
Driven by the higher revenue, NKT Photonics lifted EBITDA to
In
Financial outlook for NKT
For NKT, revenue (std. metal prices) is expected to be approx.
NKT anticipates an increasing demand for power cable solutions and services in the years ahead and as a technology leading provider NKT expects to be a significant beneficiary of this development.
NKT expects in particular the future development of the high-voltage market to be attractive, supported by the global transition towards renewable energy sources such as solar and wind and a political agenda to expand transmission lines to interconnect power grids within countries in the EU and also in the rest of the world. This transition will also drive demand for the NKT Applications and Service & Accessories business lines.
The growth of the high-voltage markets is, however, subject to various factors, including the timing of political decision-making, which makes the roll-out of specific projects challenging to predict.
In 2017, NKT provided medium-term financial targets, which targeted operational EBITDA of approx. EUR 200–225m and RoCE to be more than 13%. However, due to the aforementioned timing uncertainty for particularly future awards of high-voltage projects, NKT has decided to only provide financial outlook within the current financial year.
Financial outlook for NKT Photonics
For NKT Photonics, organic revenue growth is expected to be approx. 5–15% and the EBITDA margin to be approx. 15–18% in 2020.
In 2017, NKT Photonics provided medium-term financial targets. The annual organic growth is expected to be above 10%, the EBITDA margin is expected to reach approx. 25% and RoCE is expected to be approx. 20%.
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Attachments
- NKT_Annual_Report_2019
- NKT_Sustainability_Report_2019
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