SRV - Write-downs burdened earnings

SRV's net sales in Q1 amounted to EUR 190.7m, quite in line with our consensus estimates (EUR 186.7m/179.0m Evli/cons.). Operative operating profit amounted to EUR 4.9m, above our estimates (EUR 3.2m Evli). EBIT was significantly burdened by write-downs relating to SRV’s holdings in Russia and amounted to EUR -85.7m.
  • Revenue in Q1 was EUR 190.7m (EUR 187.1m in Q1/21), quite in line with our and consensus estimates (EUR 186.7m/179.0m Evli/Cons.). Growth was 2% y/y.
  • Operating profit in Q1 amounted to EUR -85.7m (EUR 5.2m in Q1/21), below our estimates and consensus estimates (EUR 3.2m/2.2m Evli/cons.), at a margin of -44.9%. SRV wrote-down the value of essentially all of its holdings in Russia, which had a clear negative affect on EBIT. Operative operating profit amounted to EUR 4.9m, above our estimate of EUR 3.2m.
  • EPS in Q1 amounted to EUR -0.51 (EUR 0.00 in Q1/21), clearly below our estimates and consensus estimates (EUR 0.00/0.00 Evli/cons.).
  • The order backlog amounted to EUR 858m, down 19.1% y/y.
  • Construction revenue in Q1 was EUR 175.2m vs. EUR 186.7m Evli. Operative operating profit in Q1 amounted to EUR 6.3m vs. EUR 5.2m Evli. 
  • Investments revenue in Q1 was EUR 1.1m vs. EUR 1.1m Evli. Operative operating profit in Q1 amounted to EUR -105.4m vs. EUR -1.0m Evli. 
  • Other operations and elim. revenue in Q1 was EUR 14.4m vs. EUR -1.1m Evli. Operative operating profit in Q1 amounted to EUR 13.4m vs. EUR -1.0m Evli. 
  • Guidance for 2022 (reiterated): Revenue is estimated to be EUR 800-950m and the operative operating profit is expected to improve compared with 2021
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