Earnings call transcript: Lamor’s Q1 2025 shows improved profitability

Lamor Corporation Oyj’s Q1 2025 earnings call revealed a mixed financial performance, with revenue falling short of the previous year’s figures but profitability showing improvement. The company, which has seen a 6.63% year-over-year revenue decline to $118.5 million in the last twelve months, experienced a noticeable stock rise, with a 5.22% increase to $1.32 in pre-market trading following the call. The earnings call highlighted key aspects such as improved adjusted EBIT margins and significant order intake, despite the challenges posed by market volatility. InvestingPro analysis indicates that while the company operates with a significant debt burden, its net income is expected to grow this year.

Key Takeaways

• Lamor’s Q1 2025 revenue was below the previous year’s levels.
• Profitability improved to a 9% adjusted EBIT margin.
• Order intake was €28 million, down from €60 million last year.
• The stock price rose by 5.22% following the earnings call.
• Guidance for full-year 2025 remains unchanged.

Company Performance

Lamor’s performance in Q1 2025 showed a dichotomy between revenue and profitability. While revenue was below the previous year’s comparison period, the company managed to enhance its profitability, achieving a 9% adjusted EBIT margin. This improvement was driven by key projects like the NEOM project and effective cost control measures. The revenue split between service and equipment sales is now even, reflecting a strategic balance in the company’s operations.

Financial Highlights

• Revenue: Below previous year’s comparison period.
• Adjusted EBIT margin: 9% (target is 14%).
• Order intake: €28 million (compared to €60 million last year).
• Net working capital: Reduced by approximately €20 million.

Market Reaction

Following the earnings call, Lamor’s stock price increased by 5.22%, reaching $1.32. This movement is significant given the company’s 52-week range, which has seen a low of $0.99 and a high of $2.37. With a market capitalization of $38 million and trading at a price-to-book ratio of just 0.55, InvestingPro analysis suggests the stock is currently undervalued. The stock’s reaction suggests a positive investor sentiment, likely influenced by the company’s improved profitability and stable guidance for the year. For deeper insights into Lamor’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, along with 6 additional ProTips and extensive financial metrics.

Outlook & Guidance

Lamor’s guidance for the full year 2025 remains unchanged, with a focus on efficient sales and delivery, winning targeted tenders, improving profitability, managing cash flow, and preparing for circular oil production. The company’s strategic initiatives, such as establishing a service center in Saudi Arabia and focusing on environmental protection projects, are expected to contribute to its future growth.

Executive Commentary

Johan Gronen, CEO of Lamor, highlighted the ongoing demand for sustainable environmental solutions despite global market uncertainties. He stated, "The global increased risk and awareness of the risk has not gone away. The demand still for sustainable environmental solutions... are remaining." Gronen also emphasized the company’s commitment to its guidance: "We do believe that this is something that we will stick to. And based on that, this is the guidance that we would like to proceed with."

Risks and Challenges

• Market volatility and uncertainty could impact future performance.
• The reduced order intake compared to last year may affect revenue growth.
• Dependence on large projects like NEOM may pose risks if project timelines or budgets change.
• Maintaining the improved profitability margins in a competitive market.
• Potential fluctuations in global demand for environmental solutions.

This earnings call reflects Lamor’s strategic focus on profitability and market adaptation in the face of revenue challenges and market volatility.

Full transcript - Lamor Corporation Oyj (LAMOR) Q1 2025:

Tapio Bezeland, Webinar Moderator, Landmark: Good day, and welcome to Landmark’s Q1 webinar. My name is Tapio Bezeland. With me today, I have, as usual, Johan Gronen, our CEO and Mirko Forsell, our CFO. Next, they will be going through the key takeaways from our Q1 as well as summarize our focus points for the rest of the H1. Then we’ll finish with the questions as usual.

Without further ado, go ahead, Johan.

Johan Gronen, CEO, Landmark: Thank you. And welcome also from my behalf to everyone on this webinar. And I would like to give you a couple of snapshots regarding Q1. And first of all, I mean, there are three main areas that I would like to lift out here is, first of all, new orders significantly increased in Q1, which I’m very happy about that we could increase compared to the comparison period from last year. And here, there are several different areas that improved during the first quarter.

We got orders from all major all the market areas. And that is part of the work that we’ve been doing also during last year and also coming into this year that we’ve focused on the efficiency in respect to the sales organization. Then in respect to profitability, also improvement here, driven then by the recognition from the Kuwait and NCC projects that impacted this especially and also, of course, the environmental protection revenue growth that also happened in the especially then in Europe, Asia and Americas, most of the market areas in that respect, too. The strategy implementation has continued. We put a special emphasis on the rollout internally across the market areas, so the whole global organization, the focus is and also the shorter term focuses and also for the whole strategical period.

As I mentioned also in the beginning that we’ve restructured the sales organization for scaling and efficiency, which is an important part of the, let’s say, making sure that we get the new orders into the pipeline. Centralized delivery chain management globally, that is part of securing also the profitability of the project as we go ahead and also strengthening the project management teams. So really, the delivery part of our organization that we can ensure that the, let’s say, the equipment deliveries, project deliveries are tended to in a proper way. Then as a next step also in respect to the focus areas here, we would like to lift out that we are focusing on Saudi Arabia, where we earlier said that the installed base has significantly improved during the last year into this year. And that is now also requiring that we put a special emphasis on providing service for our equipment and also having the capability to manufacture, assemble equipment locally in Saudi Arabia.

I will come back to that later on. But this is an important step in securing our presence in Saudi Arabia and why not also the GCC region. A couple of deep dives in respect to the business itself. Environmental Protection, revenue remained at the same level as on the towards the comparison period. Increase in Europe, Asia and also in the Americas region, but then a slight decrease in especially then in Middle East Africa.

Smaller environmental damage cleanups that continued in Peru, Ecuador. And this is something that is very important for our organization. We are a response organization in addition to the preparedness that we are supporting our customers in building up. So this is something that is hard to forecast, but we need to have the capability to address it when it happens. So that is something that we make sure to maintain and that we have the capabilities to support the customers when things like that happens when time is of essence.

Then equipment orders, I could say, midsized type of equipment orders that for environmental protection technology that we also had in Kuwait and also from any in Italy, another similar type of deal that was also agreed in Q1. And then, of course, the Service Center that I mentioned about earlier. In respect to remediation restoration, there was a decrease in respect to the comparison period. And revenue, major revenue in remediation restoration, of course, it’s related to the Kuwait project that is still continuing and where the biological remediation part continues like very, very secure and going forward. And also the soil washing volumes that temporarily reduced due to some maintenance work that has been done on the processes.

Other salt remediation projects, of course, continue in Ecuador, mainly in Ecuador and, of course, in Oman. And so this is something that has been going on in the area, but not to forget that we are also involved with customers in preparing for major remediation projects. And one example is the contract that we signed for a pre study or a feasibility study regarding industrial landfill remediation, one industrial landfill in Latin America. And that work started in Q1. So early stage involved with the customer due to the trust that they have in L’Amour positioning us for then the next stage.

So that is a very important part that we wanted to highlight. Material recycling. Also revenue decreased compared to the previous period, but still here also that the construction of the Marpol waste reception and treatment facility in Bangladesh is now expected to be completed by end of Q2 this year. And again, this is a reference. We are now involved in a major feasibility pre design phase for another Marpril project of size in Middle East.

And that is something that, again, that we want to be very early stage involved in the customer, being able to not dictate, but be helping out in scoping the design and the, let’s say, the boundaries for the project going forward. And then we have the plastic recycling concept. Installation continued, design preparation for the process equipment progressed. And also what is very important here and we would like to underline is that we received an extension of the trial period permit until end of twenty twenty six. That is then, of course, securing the ramp up period of the plant that is now the stage that we are entering into.

And also, we would like to lift out now the cornerstones again. We talked about it last time, but just as a reminder, the enhancing efficiency. That’s the backbone of what we want to achieve also in this strategy period, making sure that from sales offerings to operations deliveries that this is something that where we have taken the improvement of the profitability as a focus, making sure that we maintain or even improve the profitability throughout the extension of a project, our delivery of equipment that we don’t have extensive quality concerns that needs to be tended to in addition to, let’s say, framework of either the equipment delivery or the project itself. So that’s the basis. Then going into further strengthening, of course, the environmental protection business.

And that’s why we, for example, then in Saudi Arabia, want to make sure that we are considered as a local player in that market in respect to equipment sales and also services, training and so on. And that is part of this first area to really secure that we have continued being seen as a trusted partner and a partner that can, let’s say, work globally and is delivering as promised to the customers. Now we have in the remediation and material recycling, we have trusted references. We have also secured partnerships with strategic partners to support our deliveries and then again, underlining the global approach that is based on strong partners and our own core knowledge that is then being united and where we are supporting the customers in building up the proper solutions to their challenges. And then, of course, chemical recycling of plastics, that is our new endeavor that we are now continuing, progressing towards the next phase and ramping up of the first concept plant.

And the first line in the concept plant is the first stage and then also making sure that we have the long term plan very cemented and also that we can communicate all that going forward. Just underlining the importance of this bridgehead in the Saudi market. The framework in many countries are also changing that it requires that you are considered as not maybe a full local player, but you are more localized than just delivering equipment and then traveling away. That’s why we’ve taken the now the decision to build up a regional service center in Saudi Arabia on the first on the East Coast Of Saudi Arabia on the Gulf on the Arabian Gulf shore and to be able to support the very extensive installed base of OSR equipment that we now have in Saudi Arabia, building up since 1992 until today. And this means that we will have the capability to locally manufacture, assemble equipment that will have a Saudi Arabia stamp on them as locally manufactured.

And then also that we have the capability to service the equipment that is already in place in the market, service train, even train the users of the equipment or the customers around how to utilize our equipment in the most efficient way. And here, we have already got established as a partner in respect to training of OSR preparedness and response. We have in place or we’ve, I mean, provided internationally accredited training programs to over 4,000 oil spill response professionals in Saudi Arabia already at this point. So this is an important step and an important step to make sure that we are seen as a local player in the market. And not only Saudi Arabia, we are talking about the GCC countries overall.

Then as I said earlier, that we are continuing as planned in the Kilpelahti project to in this first phase starting up of the first plastic recycling line as a part of the concept plant in that area. So that is proceeding as planned. Then we wanted to lift out a little bit of how we are a proactive player in the global market of environmental protection or recovery business. There are four different areas that we wanted to share some light on. First of all, the response business that we do, the preparedness overall, building up, being prepared to act when the accidents are taking place and also being a partner in the planning pre studies phase, making sure that our thoughts, our vision, our equipment is being taken into consideration when planning doing feasibility studies.

Customers want to make sure that they are even more aligned and accurate in their planning before then doing the final investment. So that’s an important area. And then, of course, the operations, credibility around operations that we are acting on at the moment. So in respect to response, as we speak, there are two major accidents that we are supporting the governments in Ecuador and Peru at the moment, major accidents. And this is something that we are known for being able to respond quickly, making sure that we train people that will be at the sites.

We will be able to locate equipment. We will be able to support in also remediating when that time comes after the accident is being cleaned up. So contain, making sure it doesn’t spread even further and then to be a partner when remediating. Then in preparedness, of course, training, supporting the customers in building up credible preparedness capabilities is one part. And also building up, let’s say, stockpiles regionally or even with the customer is another area.

And not to forget that I don’t think that we’ve been talking too much about is that Lamour today, we’ve been providing up to, I think it’s more than 85% of equipment in built systems for Arctic conditions. So response vessels that are out there to in the Arctic region, icebreakers, I mean, Navy ships, coast guards in the Arctic region around the globe, we have delivered more than 85% of the equipment or inbuilt systems for that fleet of vessels globally. So that’s quite something that I feel that we can be very proud of, if we are talking about protecting the very sensitive Arctic region around the globe. Then I mentioned earlier about, let’s say, pre feasibility study in regarding landfill remediation in South America and then the MarPOL study that we are now supporting the customer in one at least one case in Middle East. And then pictures from the operations in Kuwait on the top.

And then on the bottom, we have the Bangladesh that is now going towards the final stage and ramp up of the production in end of Q2. So that is short. And Mikko, if you would like to say a couple of words about the financial side.

Mirko Forsell, CFO, Landmark: Thank you very much. All right. So good afternoon also from my side. So let’s have a look the key highlights from financial highlights from this morning’s report. So starting from the top line development as well as kind of commenting briefly on the profitability.

So the revenue development, which was kind of clearly below the kind of comparison period from the company perspective, it was expected. So in the comparison period, so still last year in Saudi Arabia, we still had the NCC service project ongoing, which were kind of missing from this year first quarter numbers. The second big factor in respect of the lower revenue is the kind of the revenue recognition in terms of the Kuwait project. So as we had some maintenance stops in the kind of the soil washing plants, so it also impacted then the revenue in Kuwait or revenue recognition in the Kuwait project. On the other hand, on a positive side, as we announced late last year that we had the kind of the Neom deliveries then partly split to last year, but they were also impacting positively the first quarter of this year.

And at the same time, if we briefly comment the kind of the profitability. So as you can see that starting from the last year beginning of last year first quarter, we have been able to constantly improve the profitability. So we are not yet there where we want to be in the long term perspective. So the targeted profitability or adjusted EBIT being 14%, but we’ve already reached 9% out of the margin itself driven by the, I would say, two main things. One being that if we on the next slide have a look on the kind of the revenue or kind of the sales split in respect of how much we have the service project and how much we have the equipment sales that is somewhat different than we had in the last year, which is then supporting then the profitability improvement.

And then other thing of course is the NEOM project, the revenue recognition as well as the high margin of the project itself is the other key driver for the good improved profitability for the first quarter. And then we have been able to keep tight kind of the cost control as well in place. As mentioned already earlier, so if we then look at the revenue in respect of the equipment and service sales, so there you can see that out of the €90,000,000 if we compare to last year where the kind of the three third three fourth of the overall business was kind of the service business. Now the share of that one is split half and half with the service and equipment sales. Then on the other hand also as Johan mentioned then the material recycling in respect of the overall revenue as the Bangladesh project is currently coming to the end during this first half of the year.

Then also the activities with the project finalization is having a relatively small impact on the revenue for the first quarter. And then if we look at then the order intake, as already commented, I think we are pleased to say that finally the order backlog has been turning to kind of the growth path. Then overall, the kind of the trend over the starting from the last year first quarter that we can start to see that the order intake is kind of developing positively. And for the first quarter, we had bit less than €28,000,000 worth of new orders and in comparison to kind of the last year 60,000,000 And in a way, we could say that the start for the year in respect of the orders has been strong. Then of course other important thing is the kind of the working capital development.

As a comparison to last year first quarter number, so we are currently operating approximately €20,000,000 lower net working capital level, where the kind of clearly the biggest area is the kind of the contract assets. They are very much connected to kind of the Kuwait project. And then as a comparison to kind of the year end, there was only kind of the marginal increase in overall operating net working capital. But at the same time, what we can be positively seeing in the numbers or this graph is that the kind of contract asset values continue to go downwards, which is then of course releasing then the working capital out of it. In overall, the net cash flow in the operations versus the previous year still a bit negative for the first quarter.

Equity ratio, net gearing those numbers you can see there investments. Could shortly only comment that Kilpelahti project is the significant investment from the overall perspective and that has been then been the majority of the other investments that we have reported here on the Q1. So that was in sort kind of the financial key highlights out of it. So if I would ask then Johan to join again.

Johan Gronen, CEO, Landmark: Yes. So a couple of points regarding the outlook and also the key focuses for the full first quarter first half of this year. Globally, the global increased risk and awareness of the risk has not gone away. I mean the demand still for sustainable environmental solutions that we are working with globally, they are remaining. That situation has not changed.

If you talk about the geopolitical risks continued in all the, you could say, the all the major maritime hotspots around the globe, where, of course, the Baltic Sea is one of them, but also in the others. So that is still a risk factor that needs to be taken into consideration. And there is a continued also push for taking care of legacy and also production induced contamination challenges around the globe. And that is something that the governments and also corporations and also due to increased reporting responsibilities that needs to be taken care of. And this is something that where we see that there is also an increased demand for our kind of solutions.

And then if we are talking about the we all have heard about the urgent need to drastically increase recycling of plastics. And there are certain challenges in increasing the current way of utilizing only mechanical recycling of plastics or then also to incinerate the plastic that cannot be mechanically recycled. And here, the chemical recycling is not only by us, but it’s this is a global demand. It’s a demand from the oil refining companies. It’s a demand from the plastic users, for example, in packaging industry and so on.

But these three different areas have not changed. But what we, however, see is that currently, there is a certain uncertainty and volatility that has increased that we then we don’t have clear indications that it’s impacting the market, but this is something that can influence the decision making, the timing of the decision making can influence that. And that is something that we just wanted to highlight. So the market itself and the conditions in the market has not changed, but the volatility and uncertainty is something that we would like to highlight as something that we need to take into consideration. However, the guidance for full year 2025 is that it’s unchanged in respect to our guidance.

We do believe that this is something that we will stick to. And based on that, this is the guidance that we would like to proceed with. Then focuses for the first half of the year. Continue focus on the sales and efficient delivery. That is quite self evident and executing the current deliveries.

And also that we would like to highlight that complete and win targeted tenders of various size. And the various size, earlier, we talked about the three buckets, let’s say, the smaller type of equipment sales, the midsized type of equip of packages. And then we have the larger projects. So in these three different areas, you want to complete and win. So this is something that we would like to stick with and make sure that we are focusing on.

And then the profitability improvement. This is something that we are continuing with. We have in place operational efficiency programs to be able to make sure that this will also be will happen. And then continued focus on the cash in side. And that is something that where we now put in place a process to make sure that we this is on top of our minds, and this is something that we will continue with together with our customers and joint venture partners.

And then in circular, oil production preparations. We are continuing and preparing for ramping up the activities during this year. So

Tapio Bezeland, Webinar Moderator, Landmark: thank you, So we are ready to start our Q and A and we already have a number of questions waiting for us. So our first question comes from Antti Koski, the analyst from Danske Bank. And it’s about the potential future revenues from the oil spill in Ecuador and then the remediation project we mentioned in Latin America where we are doing the pre study. So let’s take the spill question first. So do we expect material further revenues from the major oil spill in Ecuador in the coming quarters?

Johan Gronen, CEO, Landmark: It’s a little bit early to take a stand on that at the moment. We know the current situation. What we can assume is that the current spill projects, they will develop into remediation activities. And we don’t have a full insight on that. And we would like to come back to that when we are talking about this in the next stage.

But there is activities ongoing, but how to take that into consideration? That goes into the future a little bit.

Tapio Bezeland, Webinar Moderator, Landmark: So we continue to work with the customer and let’s see how the project continues. Okay. Then the second question was about the revenue potential. Customers. Customers.

The second question was about the revenue potential in the remediation project we mentioned in Latin America, the landfills, where we are doing the pre study at the moment. So at the moment, it’s a pre study. So but what about the future potential?

Johan Gronen, CEO, Landmark: Yes. I wouldn’t like to comment on the exact, let’s say, let’s say, the value of the full project. But it’s quite clear that pre study of this size is not done if it’s a small project. But this is something that where it’s very important to be diligent about what type of technologies, what will be the, let’s say, the costs developing with in respect to chemicals and the process overall, energy consumption and so on that needs to be taken into consideration to make the whole project viable and also that it’s predictable in respect to cost going forward. So that it takes quite some efforts to get that scoped in, but we wouldn’t like to take a stand on the value of the full project at this But

Tapio Bezeland, Webinar Moderator, Landmark: we remain in a good position for the future activities and tenderings potential tenderings. Okay. Then the next question let’s take from Thomas Westhehorn, the analyst from Indras and about Neon deliveries maybe for Mikko. So could you provide more color around the very strong Q1 gross margins? Were the Neon shipments more profitable compared to typical equipment sales?

Mirko Forsell, CFO, Landmark: Yes. It was let’s put it this way that the half of the deliveries for Q1 out of the Neon project was more or less conducted on Q1. Q1. So it has as we have said that it have a kind of good margin itself as it was kind of the equipment deal. So that’s kind of clearly one driver.

But I would still like to also highlight that we actually had a relatively good also progress in all other areas as well. So it wasn’t only Neom itself, which was kind of contributing the revenue and profitability development. And putting it other way around that I think in the comparison period, there were some service projects, which were kind of looking backwards. So typically they have a bit lower the margin itself. So that was also other profit driver for the Q1.

Tapio Bezeland, Webinar Moderator, Landmark: Thank you. Then let’s take another question from Antti actually regarding the service center in Saudi Arabia, which Johan talked about and costs associated. So how much of additional cost should we expect to arise from the new service center in Saudi Arabia?

Johan Gronen, CEO, Landmark: Yes. One thing that we’ve done with the service center network is that we have looked at where we have the stockpiles logistically that they are accessible to the market areas and also where we where are the focus markets that we need to be present. So there has been, you could say, parties of redistribution from a very well distributed network to more of a strategically more focused network. So that’s part of it. That, for sure, has a contribution in respect to what costs involved.

And also this is a part of building the business without this having this in place, the training capabilities we already have been doing training for our customers in Saudi Arabia. So we have the infrastructure for that in place. So it’s more now to package it into one location, also to redistribute, for example, manufacturing of or assembly of certain products that are essential for the market also into Saudi Arabia. So I would say that based on the impact that this will have on our presence and the market, it’s huge compared to the quite slim investments that you need to do to be able to have this in place. Then

Tapio Bezeland, Webinar Moderator, Landmark: let’s take another question from Antti, maybe for Mikko, this one about depreciation, which has been recently at a lower level. So the level of depreciation is down clearly both from previous year and the previous quarter. Is the Q1 level something that we should expect also from the coming quarters?

Mirko Forsell, CFO, Landmark: Yes. I think the biggest share of those kind of, let’s say, variable depreciations are mainly coming from the kind of the NCSC project, which ended up then during the last year. So that is, as you know, in the IFRS logic, then some of these lease contracts are kind of treated as a depreciation. That is the clear driver. So I would say the next bigger item that we foresee potentially is at least the kind of Gilpinati then the plant when we start to depreciate that at some point of time then later this year.

Tapio Bezeland, Webinar Moderator, Landmark: Okay. Thank you. Another from Antti on debt levels. So what is the what would you say is the level of net debt that we are comfortable with in the current operating environment? Maybe Mikko again.

Yes.

Mirko Forsell, CFO, Landmark: I think overall, of course, there need to be some leverage then to kind of continue to kind of conduct these our projects. We kind of foresee that the overall level of, let’s say, the net working capital slash tender debt will be continued to decrease as we are able to kind of operate the kind of the Kuwait or kind of the Kuwait project towards the end of it. So that will be then releasing the working capital. And at the same time, of course, I would say that the clear target also from the company perspective or from our side is to kind of continue focus on kind of the really managing then the kind of the working capital side. I believe firmly that we have still room to improve in terms of the inventories as well as in terms of kind of getting then the account receivables and contract assets on to be operating on the lower level.

Tapio Bezeland, Webinar Moderator, Landmark: Okay. Pilate was also mentioned, so maybe I’ll take the CapEx question next. So from Antti again, what is the level of CapEx that we expect to spend in 2025, around In respect of sorry. Overall CapEx spending for this year.

Mirko Forsell, CFO, Landmark: Yes. Well, I would say that depending if we say that I think we have a relatively clear understanding in respect of the Kilpillati now in order to kind of get the kind of the completion of the project. We will continue to invest on the Kilpillati that we have already said that that will be the primary investment target for us. Otherwise, I think, of course, depends what kind of the project might be coming up from the customer side, if they will need some investments, but those are quite dependent on the development of the business in general terms.

Tapio Bezeland, Webinar Moderator, Landmark: Yes. Thank you. Then maybe a more broad question on profitability and our projects. So this is from Antti again, so and maybe for both of you. Does the profitability of Lammo’s projects vary over the lifespan of the project?

Are there typically differences in the beginning, middle or end of project in terms of EBIT margin? I suppose that differs a lot from this regarding the what kind of project it is. But any kind of how we can kind of get some flavor on that?

Johan Gronen, CEO, Landmark: I would say it of course, the easy answer is that it varies. But if you take, for example, Kuwait project, now we need to consider that this was the first project in this scale that we conducted.

Tapio Bezeland, Webinar Moderator, Landmark: Oh, in the world.

Johan Gronen, CEO, Landmark: Yes. And however, I think that now we have a really good understanding on how the cost will develop throughout the project. And in that sense, I don’t think that the variability should be that large. Of course, there will be changes, might be some seasonal changes depending on where you are, but not in a large scale. Then if you think about, for example, NCC project, I

Mirko Forsell, CFO, Landmark: think

Johan Gronen, CEO, Landmark: or, let’s say, preparedness project overall, it’s also very well should be very well foreseeable how the costs are developing and how the, let’s say, the invoicing is happening throughout the project. So I see it would be that large of a variation.

Tapio Bezeland, Webinar Moderator, Landmark: Anything you

Mirko Forsell, CFO, Landmark: want to I think it depends so much on project itself or what is then the kind of how well it is, how simple or complex the project is that, of course, we need to kind of do the pre calculation for the project itself. And then depending on the size and the length of the project, it may have some impact if surprises will come positive or negative.

Johan Gronen, CEO, Landmark: And you always have a mobilization phase and then you have the operational phase.

Tapio Bezeland, Webinar Moderator, Landmark: Yes. Thank you. Then a question about market uncertainty, which obviously was a topic we also addressed in our presentation, which could impact tender schedules also. Here’s a question from both Antti and Thomas have asked about this basically. Thomas asked, have you noticed a change in customer behavior along with the increased geopolitical tensions?

And then Antti asked a similar question, but also added, do we see a potential risk going forward? So two questions in a way. Have we seen a change in customer behavior? And then also looking forward, do we see a potential risk of changes or delays going forward? So how would we comment on that?

Johan Gronen, CEO, Landmark: We can’t say exactly, we can’t pinpoint that what has changed. But there is a concern right now. But we know that the situation that how long will this continue. It’s very, very unpredictable in that sense. So I have to say that we haven’t seen a change in the behavior yet, but we noticed that there is uncertainty and of course the volatility in the market overall.

But then of course the behavior of wind oil price. But the market that we are in that oil companies they have to be if there is not only oil companies, but there are certain players, stakeholders that needs to be prepared. And the risk geopolitical risk is still on a high level. And then the, let’s say, the legacy challenges that are out in respect to environmental pollutions and so on, there is a higher intensity or awareness that they have to be addressed. So it’s very, very hard to say.

Mirko Forsell, CFO, Landmark: So in a way, could we say that the fundaments have not changed, but it is the uncertainty or volatility has now, at least at this point of time, looks to be increased.

Johan Gronen, CEO, Landmark: Yes. And that’s why we wanted to, let’s say, pinpoint it.

Tapio Bezeland, Webinar Moderator, Landmark: Yes. And we continue to follow the market how it develops in the coming months and the rest of the year. Okay. At this moment, there are no further questions. So I think that we will conclude this Q and A and our webinar.

We thank you for joining us today and look forward to talking to you again during summer when we come out with our Q2 results. That’s the latest. Thank you. Thank you.

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