Disclaimer: So, i am trying to learn and get better. I am doing some analysis with my friends and we present it to each others to do some practice and i though i could share it here and have some opinions or help to get better, some advice or something. More experienced people or specialists here that want to leave some critique on my “aNaLySiS” on Norwegian Air Shuttle??

COMPANY PROFILE

Norwegian Air Shuttle ASA, known also as Norwegian, it is a Norwegian low cost air travel company that operates nationally and internationally with its headquarters in Oslo-Gardermoen.

Founded in 22nd January 1993, Oslo

It is the fourth low-cost company after Wizz Air, EasyJet e Ryanair, and the second largest in Scandinavia. It is the ninth in Europe for passenger volume.

The company has a certified 4-Star Low-Cost Airline for their quality of its airports, onboard product and staff service (both on board and ground staff). The rating include also seats, amenities, food and beverage, cleanliness.

The company operates mainly in Northern Europe

Sector's Risks

The current COVID-19 Pandemic is struggling Airlines Companies by lowering their income volume and of passengers volume.

During 2019 and 2020, passenger volume decrease by 73%, with the lift of some COVID restrictions and the circulation of the vaccine, we shall an increase of passengers volume, still way low from pre Pandemic levels.

PASSENGER STATISTICS

October 2021 to January 2022

Time	Observed Year	Year before
October 2021	1,203,205	319,477
November 2021	1 005 380	124,481
December 2021	931,917	129,664
January 2022	637,376	74,224

We can clearly see an increase of passengers traffic from the last year and the last period, due to the release of covid restrictions, there are more national and international travels. We shall expect an increased revenue in comparison to the last commercial cycle.

FINANCE

Main Key Points of the last crisis management during COVID-19

• Successful conversion of debts into equity
• Public offering added 15.2 Billion NOK in equity
• 0.5 Billion NOK loss from operations
• 3 Billion NOK loan guarantee aid from Norwegian State
• 330 million from associated private banks

In million of NOK	Q3 2021	Q3 2020
OPERATING REVENUE	1,927	1,288
EBITDA	21	-1,263
EBIT	-295	-2,813
NET	169	-980

A clear signal of recover from the 2020 pandemic is reflected on the financial statement of the company, with an increasing influx of earnings and progressively positive financials.

BALANCE SHEET

In million of NOK	30 SEP 2021	30 SEP 2020
Total non-current assets	7,973	68,291
Total current assets	10,648	9,660
ASSETS	18,621	77,951
EQUITY	2,526	11,110
LIABILITIES	16,095	66,841
EQUITY & LIABILITIES	18,621	77,951

A clear point of its positive balances is due to the restructuring of its finance structures and debts by selling assets and equities. We can see a reduced financial debt too, a positive point for the company and free cash for disposal. The liquidation of inventory helped to stabilize the company finance. The company had to reduce its size and possessions to become financially stable in the long run.

2022 PROSPECTIVE

• Signed LOI* for lease of up to 13 Boeing 737-800 NG aircraft at favorable terms with PBH for the winter seasons 2021/22 and 2022/23
• Currently, 51 aircraft in operation with PBH through winter 2021 above a minimum operation equivalent to 10 aircraft
• In negotiations for additional aircraft to be added to the fleet by summer 2022 subject to favorable terms

subject to approvals and documentation. Norwegian has the right, under some of the leases, to substitute the subject 737-800 NG aircraft for new technology narrow-body aircraft from either Boeing or Airbus*

[Would like to add some technicals too but i can't upload imagines here.]

The company has room to grow, but yet it is still unprofitable in the short-mid term, I expect a modest bull trend to 14-16 per share at EOY, due to the reopening from lockdown. The increase in travel demand shall increase revenues of Norwegian, but there are a lot of road to cover and many inefficiencies to fix.

Modest Buy, Long Hold.

​

Let me know what do you think please c: