Good morning, and welcome to third quarter operations update from Nekkar. My name is Preben Liltved, and I'm the Interim CEO of Nekkar. We are glad to share with you today some business update and by help of our CFO, Kristoffer Lundeland, some Q3 key financial figures. As informed during our Q1 operational update, we continue to present financial update every six months and a more light operational update with some consolidated figures in Q1 and Q3. Please note that you can send in questions through the webcast, and we will have a Q&A session at the end of the presentation. Next slide. Let's start with some financial highlights. Again, we have had a strong financial quarter with solid growth both on top line and bottom line. As informed earlier, this year order intake will be lower than previous year.
However, we see a bit more activity in the market in this quarter than previous quarters this year. We also see good activity in the service and upgrade market. Our development projects are moving forward in accordance to our plans, and we will revert with some more details later on in the presentation. Subsequent to the quarter, we established a new joint venture company with Transocean and our daughter company, Intellilift. Next slide. This, on the next slide, is a recap from earlier presentations for new viewers just to make sure we are all fully up-to-date on the core of Nekkar. First of all, Shipyard Solutions by Syncrolift is still the main driver of our financials and continuing to deliver solid results. The foundation of Nekkar's new businesses is engineering, electrification, automation, and digitalization competence with the heritage from Drilling Bay in Kristiansand.
This is competence that have helped to convert global offshore drilling and lifting industry, which in the past relied on huge amount of manpower and manual operations to become a lean, automated, digitalized, and remote controlled business. Nekkar aim to apply this competence as levers to develop disruptive technology that can make high growth industries, such as aquaculture and renewables, even more sustainable, productive, and profitable. Next slide. Today, Nekkar consists of three main business areas: Shipyard Solutions with our brand Syncrolift, Aquaculture with our closed cage Starfish, and Renewables with our new lifting tool, SkyWalker. At the core of this business model is our digital solution, Intellilift, which apply world-leading digitalization and automation competence across all Nekkar business area. This is a unique combination of disruptive technology and digital competence will be the building block for solution for further offerings from Nekkar. Next slide.
Nekkar's entry into the digital solutions is through our daughter company, Intellilift. Intellilift was established in 2017 by a group of engineers with background from companies focused on software development for offshore lifting and drilling operations. Nekkar became main shareholder in Intellilift in 2019, and Intellilift has gradually become an integrated part of Nekkar. Next slide. In October, we announced an establishment of InteliWell, a joint venture between Transocean and Intellilift. The close cooperation with Transocean allows Intellilift and later on InteliWell to develop and test important measures for improved well and drilling automation, and maybe more important, access higher up in the rig value chain. Development of the technology and the digital platform has been ongoing for a long period, and software is under testing in simulators at the moment.
The intention is to package software technology into Intellilift and offer a complete solution to rig operators and oil companies. Next slide. The business model behind InteliWell is to offer oil companies and operators a digital system to enable more automated, efficient, and safe drilling operation. The background IP of Intellilift developed software will be licensed to InteliWell but remain in Intellilift. Intellilift have developed their platform and software for more than three years and have already tested the software in simulators for various operators and also within the renewable sectors. The software developed in InteliWell are made for both offshore floaters and derrick rigs. The market potential is huge with potential rig owners and operators all in all continents. InteliWell will offer solutions for drilling operators and not only Transocean, but all owners and operators of drilling rigs globally.
Offering will be based on a platform fee and a SaaS model with day rates towards operators and oil companies. The core of Intellilift software platform will also be used in our other market segments such as aquaculture and renewables. This will be a very interesting journey for Intellilift and Nekkar, and we really have good thoughts about further development within the Inteliwell system. Next slide. Let's jump to Shipyard Solutions. On the photo you see a new shiplift with transfer system recently delivered after commissioning for a project. By looking at it's impressive. Please note there are two persons with a yellow vest in front. This give you an idea of the size of such systems. Next slide. Order intake in this period was NOK 69 million, excluding some smaller service orders.
In July, we signed a nice upgrade job in Spain for drive and control system for a 30-year-old Syncrolift. This system will be designed and produced by our this daughter company, Intellilift. In August, we signed a major spare parts order in Singapore, and we sold a transfer system from stock from an earlier project. In September, we secured a new build order for a new transfer system. In general, we see more activity for new Syncrolift system, which basically stopped completely during the pandemic. Our bid and prospects list are getting more firm and increasing. However, the timing of this project are uncertain. Next slide. As earlier informed, we started a service project in 2019 to generate growth within the aftersales and service market. We have an installed base of more than 200 shiplift globally.
It's a huge potential. Last year we had a service revenue of approximately NOK 30 million. This year we have an intake of nearly NOK 60 million end of Q3, and this will generate a solid growth for 2021 but also a good backlog for 2022. Since COVID allowed more travel after summer, we conducted 11 ship lift inspections globally, which is essential to grow the spare parts business. Growth of service business will continue, and we have gradually taken our share of this important market. We are also planning to increase our global footprint and to enable to fulfill commitments towards service contracts, targeting more annual recurring business. Next slide. Let's jump to aquaculture. This photo is taken a few weeks ago in Hidra, showing our downscaled prototype Starfish. As you can see, it's still floating nicely there.
If you look more closely, you can see three new water circulation units installed and on the backside of the Starfish. Next slide. We want to repeat our main target and goals for our aquaculture project. We do not want to have any sea lice inside Starfish, nor do we want any sea lice out to the environment around. We will collect minimum 60% of the waste, and we are targeting to collect more. We want the highest degree of safety against escapes. Our ultimate goal is an autonomous solution by use of intelligent controls and software systems. Next slide. The status today is that we have now tested the physical strength of our system for more than 8 months. The full-scale circulation system was tested now in Q3 and works well. More tests and monitoring will be done in this quarter.
We are also starting to test the filtering system and based on initial test, we are convinced that we are on the right track. We have also started production planning and procurement of our full-size Starfish and it's well underway. It's important to understand that fish welfare is the most important issue for us, and we will not do any compromise. Therefore, extensive testing with all biomass is necessary. Our cooperation with major players in the aquaculture sector is important and will ensure a system for the future. We are also following the market closely and in addition to a full-scale growth systems which we are developing for the moment, we are also focusing to develop system for post-smolt production because this will be a growing market going forward. Next slide. A short update on renewables and SkyWalker.
Design is still going on together with our innovation partners. In addition, we are working now closely to look at different business models and options on how to commercialize SkyWalker into the market. The devils are in the details is a well-known statement, and by involving our partners and potential end users of SkyWalker early in the project, our target is to tackle this prior to the prototype production. Next slide. The important design criteria still play a major role, and we have during the last months qualified our calculation related to efficiency, footprint, logistics towards major wind turbine companies. We also see that SkyWalker land version later can play an important role both on bottom fixed and floating windmill installation, and the interest for offshore applications are increasing. Next slide.
On the left of this slide, you see a photo of our downscaled model getting ready for testing. Our intention is to test the critical parts of the operation in real environment during the winter. Our engineer are now finishing outfitting with the electrical component and software for testing. The concept design is now complete, and detailed design of the full-scale version is ongoing. Production of the downscaled model, as you can see, are completed mechanically, and final assembly with electronic and software will be done in Q4 and testing in Q4 and Q1 next year. We'll test this outdoor and also probably testing do some test in the wind tunnel to qualify the software for controlling the machine. Development, manufacture, and test of the full-scale prototype in a wind park will be going on into 2023. Next slide.
Thank you, Roger. I ask you take over and give some financial update.
Thank you for that, Preben. I think we can move to the next slide. As this slide presents, we look at some key financial figures. As you can see on the left side, we have the quarter-over-quarter consolidated revenues and then the operational EBITDA and EBITDA margin on the right, presenting our development from the third quarter of 2020 to the third quarter of this year. As shown and as Preben has also said, we have experienced high activity over the last couple of quarters, but we have also realized strong operational margins following a more modest first quarter of this year.
The strong operational EBITDA are impacted by solid project execution in the new building business of Shipyard Solutions, where we have over the period also completed project more cost efficiently than previously estimated. As a result of that, we have delivered strong operational margins both in the third quarter and in the second quarter of 2021. Next page, please. There we have already been into the order intake and discussed the backlog. As you can see on the left-hand side, we had a significant intake of roughly around NOK 700 million in 2020 in the first half and second half combined, which was very strong and an all record high for our new building business in Shipyard Solutions.
The order intake, as Preben said in this third quarter, has been NOK 69 million. It's been a little bit on the low side in 2021. However, the pandemic has also contributed to contract awards being put on a hold for a long period of time. We have seen more activity in the market, and we are positive for the future going forward. The order backlog at the end of the third quarter was roughly around NOK 950 million, and that will provide solid and high activity also in future periods. Next slide, please. Then on to some key financial figures. This is presented on a consolidated basis.
Revenues in the third quarter was NOK 128 million, which was a significant growth of 30% compared to the same period last year. The third quarter, as I said previously, follow a strong second quarter. If you look at the year to date figures as per the third quarter, we have revenues sitting at NOK 342 million compared to NOK 228 million in the same period last year. Operational EBITDA, which excludes gains and losses from foreign exchange hedging contracts, ended at NOK 39 million in the third quarter with a very good operating EBITDA margin of close to 31%. If you look at the year to date operational EBITDA, NOK 95 million compared to NOK 33 million in the same period last year, and also NOK 71 million in the full year 2020.
Looking at our financials, year to date, we are already ahead of the full year 2020. As you saw on the previous slides, we delivered a quite strong fourth quarter of 2020, meaning that our last 12 months period, we have recognized revenue in the region of NOK 470 million and operational EBITDA of NOK 140 million, representing a margin of around 29%. As Preben Liltved has already been through our R&D, we continue the investment mainly into Starfish, the closed cage solution, and SkyWalker, along with product development in the digital solutions area.
The capitalized development cost in the third quarter was NOK 6 million and NOK 20 million year to date, compared to NOK 10 million in the same period last year. There it's important to note that these are gross figures, and we often strive to get soft funding from Innovation Norway and other funding schemes as part of our financing for new technology. These are normally in the region of 30%. That was a quick view on some key financials for the quarter. Next page, please.
Thank you, Kristoffer. To summarize where Nekkar is today. Again, we deliver solid financial results, and we have a healthy balance sheet with no interest-bearing debt. We have a unique competence that had automated digital assets and industrialized other industry sectors in the past. As we have explained, we are cooperating with strong industrial partners to fast-track the adoption of this unique competence into new industry sectors. In addition, we have a flexible business model, and we have a financing toolbox available to support us when or if required. Next slide. Some headlines at the end of the quarter. We deliver a strong financial quarter. Our balance sheet remains strong. Our backlog are healthy and give us security for further growth and cash. Order intake are improving compared to previous quarter, and our development projects are progressing in accordance to plan.
Related to outlook, within Shipyard Solutions, we have landed attractive and large service contracts this year, and this remains key focus going forward. We are also bidding attractive shiplift newbuilding contracts and believe we have a good chance of winning. We have a strong belief that we will land new contract soon. However, timing in these days are difficult. However, we have a backlog securing us for the next period. The interest for our aquaculture project are growing, and next year we hope to start harvest. In quarter four and quarter one next year, we will give us important knowledge related to how SkyWalker model will behave and operate in real life. In addition to our digital solution business area and a newly established joint venture with Transocean, we are entering into some very interesting quarters ahead.
This should be the start of Nekkar growing SaaS-generated revenue. By this, thank you for attending our presentation today, and we're opening up for a Q&A session. Thank you.
Good morning. We have received a couple of questions. First question to you, Preben Liltved. How has the lifting of travel restrictions affected Nekkar's operations, worldwide?
Travel restrictions have of course been extremely challenging for us during 2020 and also actually back to 2019. In a way, we have managed to send our commissioning engineers to complete the big ship lift and transfer system globally. Of course, our inspection services and normal service task has been suffering. We have been able now since after summer to send our people and to ship people between our branches and have executed, I think, 11 inspection job in quarter three compared to zero in the first half. This again will normally generate increased spare part sales coming after an inspection. It's positive.
I must thank all people both in Intellilift and Syncrolift during this very troublesome year with weeks in quarantine in different places around the world. We have been able to execute and deliver project also during COVID.
Thank you. Question to you, Kristoffer. Can you say anything about your expectations for the fourth quarter this year?
Yeah. Yeah. We normally don't present or guide on forecast figures. Having said that, we have a strong order backlog and a good portfolio of new building projects especially which provide us with good visibility in future revenues. As it for now, we do expect high activity and also healthy operating margins for the fourth quarter. However, it's also difficult to predict how which project will develop in an isolated quarter. We do expect high activity.
Thank you. Question to you, Preben, on the service part. Regarding the installed base of more than 200 shiplifts, how large share of them could you realistically service in the long term?
I mean, in the long term, we would like to service all of them. To capture this market, it takes time and we are in a build-up period. We have now offices in what we say are the most important places in the world. We have a service office in the U.S., one in Singapore, and one in Dubai, and we are planning to establish one more office next year. Our strategy and what we believe in is that we need to localize the service to be able to take a bigger share of the installed base. That's why we are developing our network. We have a strong team here in Norway with the competence and the engineering skills.
We will have people close to the most important sites where the installed base of the shiplift, saying 200 shiplifts, I think, Syncrolift as our brand, we have 160, 170 shiplifts in operation. Then there is some third-party shiplifts which also is possible for us to take a share of. We will of course, our target is to take 100%, but if it's realistic or not, we are not sure yet.
Okay, thank you. There is second other question regarding order intake on Shipyard Solutions. Have you lost any bids for projects in the third quarter, or have the bids just not been materialized or been pushed back in time?
No, we have not lost any big tenders in quarter three. There has just not been any. There is tenders out for the moment, but they are not. It takes time and there is international and national tenders out. We are following closely. As I said, our bid and prospect list are getting longer and more firm.
Thank you. Question about Starfish. When can we expect revenue from Starfish? I think you have already touched upon this in the presentation, Preben, but just to reiterate the point, when can we expect revenue from Starfish?
It's a relevant question. When we started this project two years ago, our target and our plan was actually to test Starfish full scale in 2022. This is still our target and we will do that for sure. We also see, as I said earlier in the presentation, that we are putting live salmon into our cage, and we are not compromising and take any risk related to fish health. We need to spend time testing without biomass until we are 100% comfortable and sure that the minute we put salmon inside, they will have a good life. We think that it's realistic to have revenue on Starfish in 2022.
Thank you. Another question about Intellilift. Do you have any plans to acquire the remaining shares of Intellilift?
Yes. First of all, now we have integrated. We have spent two years now integrated Intellilift into Nekkar business. They have taken a big share of all Syncrolift new build project, and they are also instrumental in both Starfish and SkyWalker. For me, as the CEO, this is the most important thing. The shareholder matters is for the shareholders. Also now we have settled the Transocean deal and the joint venture, and it will of course be very interesting to see how it develops. For me, this is shareholder matters and is not so important, and it's of course up to the existing shareholders.
Another question about Intellilift and specifically about InteliWell. Can you say anything about the market potential for the InteliWell offering that you have now created together with Transocean?
Now the potential market is huge. It's basically all advanced drilling ships, semis, and jackup rigs in the world. What we're trying to do and are developing and actually have been developing for a long time is to make the operation of the drilling rigs more efficient and safe, and thereby cheaper to operate and a more competitive solution towards other rigs without InteliWell system. Again, the market is huge. There has not been built any new drilling ships or drilling rigs now for years. Of course to do an upgrade and both these rigs are and will be important for the future.
Thank you. A couple of questions about Starfish. Regarding the sludge treatment on the Starfish, is the idea to sell sludge as base for fertilizer products?
Yeah, it could be, and there is other companies working with such a technology. What we do in Starfish is actually we have developed a filter which are able to segregate what we call solid waste from water because the new permits coming has a quite strict requirement of collection. I mean, what we will enable with Starfish is to collect the solid waste and in a reasonable amount because the amount of water going through Starfish is large, so we are not able to filter all the water because then it will be an impossible task. The filter design we are working on now is will segregate the solid waste and make the amount of filter needed.
Other companies working with separation and eventually transfer it into fertilizer or other things. They have a volume of solid waste to handle and not a lot of water.
Thank you, Preben. Question to you, Kristoffer. I know we're not going to answer this question specifically, but maybe you can provide a generic comment on, could you give some info on cash flow in the quarter?
Yeah. As perhaps you've probably seen in the first half presentation, we had a negative cash flow in the first half. The reason for that is that we got a lot of prepayments for those projects in 2020. Normally we get the cash first, and then we book the revenues afterwards once the projects are moving forward. That's also the case for this quarter. The cash flow is slightly on the negative side, but it's for the right reasons. We have gotten the cash before, and now we are booking revenues on the projects.
Thank you. Question on Shipyard Solutions. Again, on the service side, what is the market potential for the service part of that and market and revenue potential for the service part of the Shipyard Solutions? I guess that's to you, Preben.
It's hard to say the full potential because there is a global market and lots of local competition, and it's hard to beat all local competition as a global company because whatever is available locally, some owners or operators of shipyards will buy locally. However, our strategy is to tie up more and more of our users of shiplift into a long-term service agreement, which mean that we will be a regular at the shipyard, maintaining and servicing the system and also then supplying necessary spares. With the local footprint we now established globally, this is definitely the strategy to capture more of the day-to-day spares and supply. It's hard.
Local competition is tough to beat as a global company, but by localize it the way we do now and keep key competence here in the competence center in Norway, we will take. Back to your question, the total market, this is just guessing, but I guess the total market will be in the range NOK 200 million.
That, that's for your specific installed base, not the total global market, right?
Mm-mm.
Yeah. Okay. I think, I mean, there are a couple of other questions, but we have either touched upon them in the Q&A sessions, or through the presentation. I think, with that, we will conclude today's Q&A session and presentation. Thank you everyone for attending.