MT Højgaard Holding: Strong order intake but delays cut outlook - ABG

Surprisingly strong order intake at E&P and MTH DK Order book increase to DKK 12bn bodes well for future Delays at Scandi Byg contribute to EBIT downgrade

Order intake of DKK 3.4bn. Order book jumps to DKK 12bn MT Højgaard Holding revenues increased by 27% in Q222 to DKK 2,215 while the order intake was surprisingly strong at DKK 3,415 (+14%) and way above our DKK 1,345 forecast. Driving the order intake in particular, Enemærke & Petersen generated an increase of 340% to DKK 1,791 in Q222 through an intake of several orders in the DKK 100 – 300 range, boosting the order book to DKK 6,075m (+59%). Notable projects include dwellings at Køge Kyst and several refurbishing proects. On the other hand, the order intake at MTH Denmark decreased from DKK 2,3bn to DKK 842 but as outlined in our preview, the order intake looks strong for Q322. The order book for the unit was DKK 4.4bn at the end of Q2, down from 4.5bn in Q122. On the back of a very strong Q2 performance and robust outlook (order book) the company raises its FY22 revenue outlook by DKK 400 from DKK 8.0 – 8.2bn to DKK 8.5bn but lowers its earnings outlook from DKK 250 – 275m to DKK 215 – 240m.

Delays and clearing costs drive downgrade The downgraded earnings outlook is driven by several factor, notably a production delay at Scandi Byg. While Scandi Byg generated a strong order intake (DKK 406m vs 62m) the unit faces production delays of 3-6m due to raw material shortages. Also contributing to the FY22 earnings downgrade are COVID-19 related start-up delays in Portugal as well as costs related to clearing-up projects in Greenland and Faroe Island.

Strategy driven order book. Conference call at 12:15 (CET) In these uncertain times it is very encouraging to note the strong order intake and the order book in particular which to a large extent is driven by partnerships lending support to the company’s strategy. The company will host a conference call today at 12:15 (CET) with details in the attached deviation ... Läs mer på ABG Sundal Collier

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