Dovre - Earnings clearly above our estimates
Dovre’s Q3 revenue was close to our estimate as Project Personnel landed significantly higher while Consulting and Renewable Energy were soft. Meanwhile earnings came in clearly above our estimates, driven by Project Personnel’s performance.
- Dovre Q3 revenue declined by 11.6% y/y to EUR 52.8m, compared to our EUR 53.5m estimate. The figure would have decreased 6.4% at fixed exchange rates as weak NOK had an impact. Project Personnel was EUR 28.8m vs our EUR 23.3m estimate, while Consulting landed at EUR 3.5m vs our EUR 4.1m estimate. Renewable Energy was EUR 20.5m, compared to our EUR 26.1m estimate.
- EBITDA came in at EUR 2.9m vs our EUR 2.4m estimate, while EBIT was EUR 2.7m vs our EUR 2.2m estimate. Project Personnel EBIT amounted to EUR 1.7m, compared to our EUR 1.1m estimate, whereas Consulting was EUR 0.4m vs our EUR 0.6m estimate. Renewable Energy was EUR 0.9m, compared to our EUR 0.8m estimate.
- New activities include a major biodiesel refinery project in Canada (Project Personnel), a new multi-year framework agreement with the Ministry of Finance (Consulting), and a Fortum heat-exchange power plant in Finland as well as an “early works contract” for two large wind farms in Sweden (Renewable Energy).
- A ransom attack on Norwegian operations in late September impacted systems. Dovre has recovered from the incident without interruption to its services and has used the opportunity to transfer to cloud-based financial systems. The move will yield lower costs for the financial function in Norway starting from Q4’23.
- Dovre guides FY ’23 revenue in the range of EUR 185-195m and EBIT at above EUR 7.0m (unchanged).