Patria Group’s Interim Report for 1 January – 30 September 2020: Patria Group´s operations performed well despite COVID-19
The first three quarters 2020 in figures
- Patria Group’s net sales for the first three quarters was EUR 361.0 million (EUR 341.6 million in 2019).
- Operating profit was EUR 16.8 million (0.8). The impacts of the pandemic so far have been moderate.
- Equity ratio was 38.3% (41.9%) and net gearing 92.7% (71.9%).
Main events during the 3rd quarter 2020
- In July Patria announced to consolidate its helicopter maintenance operations in Norway for better customer support and efficiency by selling its Bardufoss operations (Patria Helicopters AS) to Kongsberg Aviation Maintenance Services (KAMS) of which Patria owns 49,9% of the shares.
- The development of Patria’s Heavy Unmanned Ground Vehicles reached a level where the Patria AMV 8x8 vehicle can be operated remotely beyond visual line of sight utilizing 5G and 4G networks. The demonstration was made in cooperation with the University of Tampere as a part of the RemoteFeel project.
- Patria joined AeroSpace and Defence Association of Europe (ASD) as a Direct Company Member.
Main events in October 2020
- Patria’s subsidiary Millog signed an agreement to acquire entire share capital of Oy Western Shipyard Ltd (WSY) from APX Metalli Ltd.
- Patria's armoured combat vehicle AMVXP was selected for the second phase of Bulgarian vehicle acquisition program based on a tender phase.
- Millog’s subsidiary Senop Oy will provide night vision devices for the Finnish Defence Forces. The contract, with a total value of more than 13 million euros, includes a 209 million euros option for the next five years.
- Patria signed a five-year agreement with Qatar Airways to train their new pilots.
- Finland and Latvia together with Patria, signed a research and development agreement for a common armoured vehicle system. This is a next step in the collaborative programme after the countries last spring signed a joint technical arrangement.
- Patria has entered into an agreement with the U.S. Army to conduct a turreted mortar feasibility study in the form of Foreign Comparative Testing (FCT).
- Co-operation negotiations were started in Aerostructures’ metal unit.
Outlook for the rest of the year
Patria’s financial and operative performance has been at a good level, and the performance is expected to continue satisfactory going forward despite the pandemic. Patria’s reliable and cost-effective lifecycle support services and top-notch products have a key role also in the future to maintain the required performance of customers’ fleets in all conditions. The HX Program for replacing Finland´s current Hornet fleet with new fighters continues. Patria 6x6 vehicle programme proceeds as planned, and the programme will also be of interest to other countries wishing to improve mobility of their armed forces.
COVID-19 pandemic has had a significant impact on commercial aviation. This has a continued negative impact on the demand of civil aviation components and civil pilot training.
Ville Jaakonsalo, Chief Financial Officer, tel. +358 500 881 070, [email protected]
Patria is an international provider of defence, security and aviation life cycle support services, pilot training and technology solutions. Patria provides its aerospace and military customers with equipment availability, continuous performance development as well as selected intelligence, surveillance and management system products and services. Patria’s mission is to give its customers confidence in all conditions, and the vision is to be the #1 partner for critical operations on land, sea and air. Patria has several locations including Finland, Sweden, Norway, Belgium, Estonia and Spain. Patria employs 3,000 professionals. Patria is owned by the State of Finland (50.1%) and Norwegian Kongsberg Defence & Aerospace AS (49.9%). Patria owns 50% of Norwegian Nammo, and together these three companies form a leading Nordic defence partnership.