NKT expects a significantly better operating profit this year than last year. Even better than previously expected, as the cable maker upgrades guidance for 2023 the day before the presentation of its half-year report. From an expected earnings before interests, taxes, depreciation and amortization (EBITDA) of EUR 200-230m, the company now projects EBITDA of EUR 215-245m.

The upward adjustment is registered to the bottom line. At the top, the company still guides for revenue of EUR 1.8-1.9bn in standard metal prices - corresponding to an operating margin of 11.3-13.6%. In comparison, the operating margin last year was 7.4%. 

The Danish cable manufacturer points to three factors behind the upward adjustment. 

Partly in the sphere under NKT’s own control, where both the execution of high-voltage investments and projects as well as cable repairs at sea have gone ” satisfactory”. This is partly due to ”limited economic impact” from external aspects from the supply chain up to the macroeconomic and geopolitical level.

The upward revision is not the only good news from NKT ahead of Wednesday’s report. On Monday, the cable contract for Northland Power and PKN Orlen’s Polish offshore wind farm Baltic Power was made firm and unconditional.

(Translated using DeepL with additional editing by Simon Øst Vejbæk)