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CEO Kirsi Suopelto on 1st March 2024:
“Our revenue in 2023 was around EUR 66 million, of which EUR 19 million was generated in the last quarter. In Marine Logistics, the demand for transport picked up and the utilisation rates of ships improved in the last quarter after a quieter third quarter. The demand for project shipments was particularly strong towards the end of the year. A transport project in the Mediterranean Sea that had been delayed because of changes in the customer’s schedule was launched at the end of the year.
Of the full-year revenue, around EUR 63 million came from Marine Logistics and EUR 3.4 million from Renewable Energy. The Group’s EBITDA was EUR 6.3 million, or 9.6% of revenue.
The full-year revenue and EBITDA of Marine Logistics were weaker than in the comparison period. In 2022, the Russian attack on Ukraine caused a strong peak in transportation demand and freight prices, which increased the revenue for the comparison year. Revenue in 2023 also decreased because of lower fuel prices. In addition, at the beginning of the year, our project shipments suffered from the repairs to the damage incurred by a vessel (Meri) in an accident in late 2022. The proportion of bulk transport of revenue was more than 70% in the financial year, which is slightly higher than usual. Of the bulk transport, around 70% consisted of contract transport and around 30% consisted of spot sales. Correspondingly, the proportion of project shipments of revenue was slightly under 30%.
In Renewable Energy, we received the company’s largest order to date in the summer, and the delivery of the solar thermal system to Bauer Holzenergie GmbH began in October. At the end of the year, we strengthened the Renewable Energy business by acquiring Rasol Oy, a Finnish company specialising in solar power systems. The acquisition complements our renewable energy offering and creates new growth opportunities in solar parks, real estate energy solutions and energy sales, for example.
We believe that the demand for renewable energy solutions will grow as companies and communities strive to move to genuinely clean energy sources. The acquisition of Rasol Oy supports our goals to grow the Renewable Energy business and turn operations profitable.
In maritime transport, more difficult ice conditions and unrest in the labour market will weaken operational efficiency early in the year. However, thanks to our good contract portfolio, demand in 2024 is expected to remain at the same level as in 2023. We have been able to increase the bulk business contract portfolio, and the order backlog for project shipments is also strong.”
– Meriaura Group´s Financial statements bulletin, on 1st March 2024
Managing Director Jari Varjotie: “Interest towards solar heat is stronger than ever before, and our sales and system design teams are actively supporting both our current and potential new customers, especially in Europe, to find solutions for the deployment of emission-free and reliable thermal energy. However, we did not yet receive any new customer orders in the third quarter.
In addition to climate targets, interest in large-scale solar thermal systems is growing especially in response to the need for energy self-sufficiency and the price competitiveness of solar heat. In addition, the utilisation of solar heat also accelerates the transition to clean energy production when emission-free electricity of limited availability can be utilised elsewhere than in heat production. Heat accounts for about half of all energy consumption in Europe and globally. However, in the short term, the turbulent energy market and the general uncertainty of the economic outlook hinder the customers’ decision-making.
Our revenue in January–September grew by 35 per cent compared to corresponding period of the previous year and was EUR 2.9 million. The third quarter accounted for EUR 0.8 million of the revenue. During the current year, the net result has been weakened by the increase in material costs, which we have been unable to fully transfer to the previously agreed-upon fixed customer prices. In new tenders, we have taken the changes in material costs into account more strongly than before. Our order backlog at the end of September stood at EUR 1.0 million, compared to EUR 0.6 million a year ago.
Our new deliveries started this year are progressing as planned both in Verdun, France, and in Sonora, Mexico.
Dozens of large-scale solar thermal systems are planned in Europe and are awaiting implementation decisions. Energy companies’ investment decisions in particular are currently being complicated not only by the turbulence in the energy market, but also by the compelling need for energy companies to deposit cash collateral for the amounts under their previously agreed-upon fixed supply contracts when the price of energy has risen dramatically. In industrial process heating, the maker of the investment decision is often a party other than a traditional energy company, for which reason they are not faced with a similar deposit collateral problem. As it is, industrial process heating has become even more promising than the district heating market, at least in the short term. Industrial process heating has already been a strong segment for us, as evidenced by our recent deliveries to Issoudun and Verdun.
A new phase in Savosolar’s business development will begin if the aforementioned conditional share exchange agreement is implemented, in which case we will get VG-Shipping, a company specialised in low-carbon and sustainable transport, as our anchor owner. VG-Shipping has a strong track record in successful business development in marine logistics and in the production and utilisation of renewable energy. Together with Meriaura, a company currently owned by VG-Shipping, we can meet the growing demand for solutions based on renewable energy and fill the supply gap. The objective of the merger is to speed up business expansion in solar heat and in various sustainable hybrid solutions for energy and heat production, as well as in low-carbon marine logistics and other projects promoting the green transition. The planning of the new group’s operations and strategy has proceeded well. We expect the merger to be completed by the end of November.
Even though the recent turbulence in the energy market has held back investment decisions, I believe that the growth of large-scale solar heat utilisation will accelerate, and I see than the merger with Meriaura will increase our ability to respond to growing demand both financially and by expanding supply. The group that will be formed as a result of the share exchange will be able to better address customer needs and significantly increase the shareholder value.”
– Savosolar´s January-September Business review on October 26th, 2022
Managing Director Bengt-Erik Rosin, Meriaura: “Meriaura’s third quarter was strong and the best summer quarter in the company’s history. Turnover increased by 50 per cent compared to the comparison period and was EUR 20.4 million. The net result also clearly improved and was EUR 3.6 million, being EUR 1.5 million a year ago.
However, the data are not directly comparable with the previous year due to the business deals that took place at the turn of 2021/2022. In the business deals Meriaura took over the shipping business from the owner company VG-Shipping and the administrative business from Aura Mare Ltd. This has improved the turnover approximately four per cent. The cost impact has been mainly structural, as previously leased vessels and purchased services were transferred to our own ownership. The turnover in January-September increased from approximately EUR 39 million to nearly EUR 54 million, and operating profit from EUR 3.5 million to EUR 7.8 million.
Traditionally, the demand for sea transport is weaker in the third quarter than at the beginning of the year. Last summer too, a slight and momentary drop in demand was experienced during the holiday season, but thanks to successful advance sales and contract coverage, our ships were well employed, and profitability remained good.
Demand was strong both in our main market area in Northern Europe, and in other parts of continental Europe and the Mediterranean. About 60 percent of the turnover in the third quarter was made up of the bulk business. More than 70 per cent of that accumulated from cargoes of contract customer.
The deck cargo ships of project logistics transports were also well employed throughout the quarter. During the review period, transports to a wind power project in Norway employed the vessels, and harbor cranes were transported both to Iceland and the Mediterranean. The share of project logistics was slightly less than 30 percent of turnover. The sharply increased fuel price significantly increased turnover, but due to the fuel clauses in the transport contracts, the effect on the result in terms of euros was minor.
As for the rest of the business, the third quarter was the main period for gypsum application of the Kipsi project. Gypsum was applied about 35 per cent less than a year earlier. In July-August, the share of other business was about 10 percent of the company’s turnover.
Meriaura’s owner company VG-Shipping and Savosolar entered into a conditional agreement to sell Meriaura’s entire shareholding to Savosolar. Other significant events include selling the vessel Mirva VG to a long-term partner, Helmer Lundstöm Ab. In connection with the sale, were concluded a long-term time chartering contract for the ship, and the ship’s operation continued without interruption. In September we signed a letter of intent together with GreenNortH2 Energy and Wärtsilä on the design and construction of a cargo ship using green ammonia as fuel.”
-Business Review January-September, 26 October 2022Meriaura