NKT Victoria vessel

NKT eyes improvement in 2021 on record high-voltage order backlog

NKT, the power cables business, has delivered improved revenue in Q4 2020 and on an annual basis.

Courtesy: NKT

The cable division generated quarterly revenue of some €269 million, against €262 million same time last year.

Year-to-date revenues stood at €1.08 billion (excluding Photonics business unit), versus €945 million for the twelve months in 2019.

This corresponded to organic growth of 15 per cent.

The revenue for NKT Photonics amounted to €69.9 million in 2020, compared with €74.6 million in 2019. Revenue performance took a hit due to the COVID-19 pandemic, particularly in the first half of 2020.

The main growth contributors were Solutions and Service & Accessories through increased levels of activity and successful business expansion. All three business lines contributed to the increased earnings as the operational EBITDA amounted to €56.7 million, against €15.1 million in 2019.

For the quarter ended 31 December, NKT narrowed its losses recognising €14.7 million EBIT loss, compared to €30 million EBIT loss in Q4 2019.

For the twelve months of 2020, the company also slightly narrowed its loss at €74.5 million from €76 million in 2019.

As a result of another net loss, no dividend payment will take place in 2021.

Improvement expected in 2021

While this improvement remains satisfactory, the company listed on the Danish stock exchange Nasdaq Copenhagen, plans to improve profitability significantly.

Namely, 2020 was the best-ever year for NKT in terms of high-voltage order intake. This growth in orders is specifically due to the ongoing European transition towards increased generation of renewable energy. The total order intake in 2020 amounting to €2.3 billion highlights five large DC projects.

NKT expects the improved financial performance to continue in 2021.

The company estimates revenue of approximately €1.1–1.2 billion and an operational EBITDA of approximately €80–110 million. NKT Photonics expects organic revenue growth of approx. 0–10 per cent and
an EBITDA margin of approx. 3–7 per cent.

NKT CEO, Alexander Kara, says: “2020 was a successful year for NKT where our contribution to connecting a greener world gained further speed.”