Meriaura Group Q4 morning result: Stronger demand for Marine Logistics

Translation: Original comment published in Finnish on 3/1/2024 at 10:22 am EET

Meriaura Group announced today its results for Q4’23. In Marine Logistics, revenue and results were above our forecasts, while Renewable Energy was below our forecasts. Overall, however, the result was stronger than we had predicted. We see no major surprises in the outlook for 2024. Performance at the beginning of the year will be affected by ice conditions and industrial action.

Good momentum in Marine Logistics

Meriaura Group’s revenue in Q4’23 was 19.0 MEUR. In Marine Logistics, revenue was 16.4 MEUR, an organic growth of 2% (our forecast was 15.7 MEUR). In Marine Logistics, demand for transport picked up and utilization rates improved in Q4 compared to a weaker Q3. Demand for project transport was particularly strong towards the end of the year.

Renewable Energy's revenue more than tripled to 2.7 MEUR compared to the weaker comparison period (Q4’22: 0.8 MEUR). The revenue miss (4.5 MEUR) was due to lower-than-expected revenue from a large solar thermal system delivery to Germany, while the impact of Rasol, a solar power systems supplier acquired at the end of November, was minimal in the reporting period, probably due to its seasonal nature. It is difficult to estimate the quarterly revenue generation from the German project, and we do not consider the revenue miss in Renewable Energy to be a cause for concern.

Profitability exceeded our expectations

The Group’s Q4 EBITDA was 2.1 MEUR (forecast 1.8 MEUR) and EBIT 0.8 MEUR (forecast 0.3 MEUR), both exceeding our forecasts. The earnings beat was thanks to Marine Logistics, where Q4 EBITDA was 3.0 MEUR (forecast EUR 2.2 MEUR). Renewable Energy’s EBITDA of -0.7 MEUR was below our forecast (-0.4 MEUR), due to e.g., lower-than-estimated revenue from the German project delivery in Q4. The Group’s net result for Q4 was 0.3 MEUR and for the full year 2023 -0.3 MEUR. The board proposes that no dividend be paid for the financial year 2023. Net debt at the end of the year amounted to 13.3 MEUR, strengthening the balance sheet compared to the previous year (2022: 16.7 MEUR).

Demand for Marine Logistics in 2024 expected to remain at 2023 level

Meriaura Group does not provide numerical guidance, but the company commented its near-term outlook in verbal terms. In Maritime Logistics, demand in 2024 is expected to remain at the 2023 level, thanks to the good contract portfolio. In the early part of the year, more difficult ice conditions and unrest in the labor market will weaken operational efficiency. In Renewable Energy, the German project provides the company with a growth-enhancing order book for at least the first half of the year (order book 2023: 6.8 MEUR, 2022: 0.3 MEUR). The acquisition of solar panel supplier Rasol at the end of 2023 will provide inorganic growth.