Company overview

OXE Marine Q4’20: First Comment

Redeye Research Note timeStamp 2021/02/19

Redeye reiterates its neutral view of OXE Marine on the back of Q4 figures in line with our expectations. The start-up of the two new production facilities is progressing nicely while the order book showed solid growth in the quarter.

Key takeaways:

  • Strong order intake grew the order book to SEK 139m vs. 101m in Q3’20. The company expects full delivery of the current order book during 2021.
  • The start on the new sites seems to be moving satisfactorily; i) Assembly of OXE200 has started in Georgia ii) The OXE300 production in Poland is also progressing with a controlled production ramp-up in February 2021.
  • Based on our initial thoughts, we are looking at a reduction of our previous sales estimate of 173m for FY21, down to levels closer to the current order book.

 

Estimates vs actuals

 

OXE Marine reported its Q4 results in line with our estimates with sales of SEK 5m (Redeye est. 5m) and an EBITDA of – 19m (Redeye est. -21m). The gross margin was also in line with our expectations at 23% vs. the expected 21%, and we believe this level is an indication of what could come from the new production network and moreover further improved by a better product mix.

We certainly believe 2021 to be the most interesting year in the history of OXE so far – with the OXE300 now being launched, it’s time to deliver for OXE by scaling up sales to reach profitability. We get back with an update.

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