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Nordex Se
5/12/2023
Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome and thank you for joining the Q1 Figures 2023 Conference Call of Nordics. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may do so by pressing star and 1. Press the star key followed by 0 for operator assistance. It is my pleasure and I would now like to turn the conference over to Felix Zanders. Please go ahead, sir.
Thank you very much for the introduction. I would like to welcome you on behalf of Nordics to our analyst and investor call for the first quarter. Our board members, our CEO Jose Luis Blanco, our CFO Dr. Edgar Hartmann and our CSO Pachi Landa will guide you through our presentations, sharing information about the latest developments business operations, financials, and markets. As you've heard, we'll follow the Q&A afterwards, and I'd like to ask you to limit yourself up to three questions. And now I'd like to hand over to our CEO, José Luis. Please go ahead, José Luis.
Thank you very much for the introduction, Félix. I would like as well to welcome you on behalf of the entire board. Pachi Landa, CSO, Ilya Harman, CFO are in the call guiding you with me through our presentation and will take your questions later. As Felis mentioned, we have prepared a regular agenda for you today. Starting with the executive summary. Let me start with the summary of the first quarter of 2023. We achieved an order intake for the first quarter of 1 gigawatt, being slightly below last year's level. Average selling price also increased from 0.78 to 0.9 million per megawatt. Order pipeline continues to be strong, although we see some temporary delays in some cases mainly outside of Europe. Our revenues increased by more than 30% to 1.2 billion euros compared to last year, 933 million euros. This development was mainly driven by higher installations of 1.3 gigawatts compared to 870 megawatts last year. As you can see, our installation run rate is almost back to normal levels, however, It is still lower than our expectations and it does not cover the delays of the last year. This will be one of the key focus areas in the quarters ahead. During this quarter, unfortunately, the gross margin was further impacted by extra costs connected to delayed installations from last year as a consequence of the cyber incident and the consequence impact of the Ukrainian war. These costs sting from usually more difficult installation and schedules, mainly in North Europe in winter times, and trying to catch up on top of the normal schedules, as well as further LD provisions for that. To make this clear, our installation run rate has improved substantially, but we still need to do more in the next few quarters. an even more active Q2 and second half of the year for our installation schedules. Despite these costs, the gross margin increased to 8.9% after 2.6% in the fourth quarter of last year and should improve further in the next quarters ahead. On the margin front, we had a negative EBITDA of approximately 115 million euros, a bit And in the first quarter of last year, this includes some liquidated damages because of project delays from last year, as we had indicated in our last call. This has impacted our underlying gross margin by around 4%. And in addition, our margins also include impacts of lower margin projects and higher cost of execution in winter times. As a result, our EBITDA margin stood at minus 9.4% compared to minus 9.5% a year ago for the same period. Overall, as expected, we have a soft start to the current year, and we expect to keep improving our margins as we go forward from here. Our working capital was at minus 10.6%, and thus well below our target. Ilya will share additional information with you later. Last quarter, our finance team was quite active with FEZ, repayment of the high yield bond in February, conversion of the shareholder loan into equity after having received the approval from the EGM in March 2023. Since this week, this conversion is completed. and our number of shares increased to 236.5 million, with ACCIONA reaching 47%. And third, with the issuance of the convertible bond of €333 million by the beginning of April to further strengthen the balance sheet in the current environment. Ilia will provide you additional information later. Finally, let me also confirm our guidance for 2023 and our mid-term strategic EBITDA target of 8%. And now I would like to hand over to Pachi to discuss markets and order intake.
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