NKT cuts losses as revenues rise

NKT, the power cables business, has delivered improved revenue and earnings in Q3 2020 in all of its business lines.

The cable division generated revenue of some €300 million, against €232 million same time last year.

Year-to-date revenues stood at €1.05 billion, versus €926 million for the first nine months in 2019.

NKT expects 2020 revenue to be around €1.1 billion, with operational EBITDA in the upper end of approximately €40–60 million.

In addition, the company’s Photonics division generated close to €17 million, in line with last year’s results.

Overall, NKT revenue came close to €317 million in Q3 2020, against €249 million in 2019.

In Q3 2020, NKT won high-voltage projects that will contribute to the ongoing European transition towards increased renewables energy generation.

The two largest awards were the power link between Shetland and mainland Scotland, with a contract value of approximately €235 million, and the offshore wind power connection in northern Germany, BorWin5, with a value of below €250 million.

NKT Group EBITDA more than doubled to €22.4 million from €10.8 million in Q3 2019. This was a continuation of the previous quarters’ improved performance in the power cables business.

For the quarter eneded 30 September, NKT narrowed its losses recognising €6.3 million loss, compared to €21 million in Q3 2019.

For the first nine months of 2020, the company also narrowed its loss at €11.2 million from €58.3 million in 2019.