The interim financial report for Q2 2024 shows a satisfying result for ZITON, building on the solid performance from Q1. Year to date EBITDA amounts to EUR 29.1m compared to EUR 19.8m in 2023.

Highlights of Q2 2024

• EBITDA amounted to EUR 19.6m in Q2 2024 compared to EUR 11.1m in Q2 2023. The improvement was due to an increase in revenue reflecting that J/U WIND ENERGY went on time charter with Siemens Gamesa at the end of February 2024, as well as improved contribution from the three smaller vessels due to a stronger market for major component replacements.

KPI guidance for 2024
Following the strong performance in Q2 2024 and a strong pipeline for the remainder of the year, we upgrade our expectations for 2024. The following sets out our revised KPI guidance for 2024:

• Weighted average utilisation rate. We expect a utilisation rate in the range of 90-100% up from the previous guidance of 85-95%.
• EBITDA. We expect EBITDA to be in the range of EUR 55-59m up from the previous guidance of EUR 52-56m.
• Cash flow from operating activities. We expect cash flows from operating activities to be in the range of EUR 50-54m up from the previous guidance of EUR 47-51m. This takes into account reversal of trade payables related to the upgrade of J/U WIND ENERGY amounting to EUR 6.5m at the end of 2023.
• CAPEX. We expect CAPEX of EUR 7-9m (up from around EUR 7m) excluding CAPEX related to J/U WIND ENERGY. In addition, we expect CAPEX for J/U WIND ENERGY of approximately EUR 26m including CAPEX for leg extension and capitalised interest costs of approximately EUR 2m related to the vessel.

Outlook for 2024 and beyond
The outlook for 2024, is based on the following key assumptions:

• The long-term charter agreement with Siemens Gamesa for J/U WIND ENERGY. The vessel has been upgraded and initiated the time charter at the end of February 2024. The vessel is expected to operate successfully with limited off-hire days. However, in late 2024 the vessel will undergo a leg extension, during which the day rate on the time charter will be reduced.
• The long-term charter agreement with Siemens Gamesa for J/U WIND ENTERPRISE. The vessel is expected to continue to operate successfully with limited off-hire days.
• The three smaller vessels, servicing the market below 6 MW, will carry out regular major component replacements on framework agreements and other tenders attained.
• Beyond 2024, the effect of having J/U WIND ENERGY on time charter with Siemens Gamesa for the full year will positively effect EBITDA. Further, when the time charter for J/U WIND ENTERPRISE was extended it was mutually agreed with Siemens Gamesa that the day rate will increase materially from mid-2025. In summary, the contracted terms of the two long-term time charter contracts with Siemens Gamesa are, almost entirely, expected to enhance projected running twelve months EBITDA to around EUR 75m from mid-2025.

ZITON to explore strategic alternatives
The Board of Directors of ZITON has engaged Nomura Greentech to act as financial advisor in reviewing strategic alternatives focused on maximising shareholder value. These alternatives include, among other things, a corporate sale, a business combination or a partnership, while continuing to develop other growth opportunities. There can be no assurance that this strategic review will result in any transaction. ZITON has not set a timetable for completion of the process, and it does not intend to comment further unless a specific transaction is approved by ZITON’s Board of Directors and its shareholders, or it is otherwise determined that further disclosure is appropriate or required by law.

Read the full interim financial report for Q2 2024 here.