AKVA group ASA: Q1 2023 financial reporting
High activity despite challenging market
conditions
AKVA group delivered revenue for Q1 of
MNOK 874 (849), an increase of 3% compared to Q1 2022.
EBITDA decreased from MNOK 69 (excluding
one-time gain of MNOK 33 from sale of shares in Atlantis Subsea
Farming AS) in Q1 2022 to MNOK 59 in Q1 2023.
Acceptable order intake of MNOK 1,170
(1,048) in Q1 and order backlog of BNOK 2 at the end of March
2023.
Award of new RAS contract with NOAP for
next 4,000 tonnes (phase 2). Estimated contract value of MEUR
40.
Market for post smolt project in Norway
still on hold due to the resource tax.
Commercial breakthrough of deep sea
farming concepts in April
The activity in the first quarter of 2023 was
high and above last year. Overall, the order intake was sound with
the newly awarded RAS contract for NOAP as the largest contributor.
Profitability improved compared to previous quarters but is still
below expectations. The Land Based business segment is still
impacted by a high cost base compared to current activity level and
by lower profitability in parts of the project portfolio. The
profit margins in this part of the project portfolio were written
down significantly in Q2 and Q3 2022 mainly due to cost inflations
and will run at a lower profit margin until completion end of Q3
2023. Furthermore, the profitability in the Sea Based business
segment was negative impacted by the product mix in the
quarter.
The implications from the new resource tax
remain uncertain. Most likely will the resource tax have a negative
impact on activity level on short and medium term, especially
within the post smolt market in Norway
Sea Based Technology (SBT)
SBT revenue for Q1 2023 ended at MNOK 655 (676).
EBITDA and EBIT for the segment in Q1 ended at MNOK 55 (94) and
MNOK 19 (58), respectively. The related EBITDA and EBIT margins
were 8.5% (13.9%) and 2.9% (8.6%), respectively. Adjusted for sale
of shares in Altantis Subsea Farming AS (“Atlantis”) of MNOK 33 the
EBITDA and EBIT margins in Q1 2022 are 9,5% and 3,9%.
Order intake in Q1 2023 was MNOK 613 compared to
MNOK 759 in Q1 2022. Order backlog ended at MNOK 861 compared to
MNOK 935 last year.
The Nordic region experienced a decrease in
revenue from MNOK 492 in Q1 2022 to MNOK 425 in Q1 2023.
In the Americas region, the revenue was MNOK
121, which is an increase from 97 MNOK in the first quarter last
year.
Europe and Middle East (EME) had a revenue of
MNOK 109 in Q1 2023, compared to the revenue of MNOK 87 in the
first quarter last year.
Land Based Technology (LBT)Revenues for the
first quarter were MNOK 192 (151). EBITDA and EBIT ended at MNOK -2
(4) and MNOK -5 (0), respectively. The related EBITDA and EBIT
margins were -1.3% (2.8%) and -2.4% (0.3%).
Order intake in Q1 2023 was MNOK 527 compared to
MNOK 254 in Q1 2022. Order backlog ended at MNOK 1,018, compared to
MNOK 829 last year.
Digital (DI)
The revenue in the segment was MNOK 27 (21) in
Q1 2023. EBITDA and EBIT ended at MNOK 6 (4) and MNOK -4 (0),
respectively. The related EBITDA and EBIT margins were 21,8%
(20,2%) and -13.3% (1.4%).
Balance sheetWorking capital as a percentage of
12 months rolling revenue is 8.2% (12.6%). Cash and unused credit
facilities amounted to MNOK 629 (561) at the end of Q1. Total
assets and total equity amounted to MNOK 3,654 and MNOK 1,198
respectively, resulting in an equity ratio of 32.8% (36.4%) at the
end of Q1 2023.
Dividend The Company’s main objective is to
maximize the return on the investment made by its shareholders
through both increased share prices and dividend payments. The
company has decided not to pay any dividend in the first half of
2023.
Order BacklogThe order backlog at the end of Q1
was MNOK 1,984 (1,849). MNOK 1,018 or 51% of total order backlog at
the end of Q1 relates to Land Based Technology (LBT).
OutlookThe order backlog and financial position
remains sound and forms a good foundation to execute the organic
growth strategy.
Salmon prices are expected to remain strong
driven by reduced supply.
The implications from the introduction of new
resource tax are uncertain. Most likely this will have a negative
impact on the activity level on short and medium term, especially
in the post smolt market in Norway.
Medium financial targets remain unchanged and
AKVA is targeting minimum BNOK 4 in revenue and minimum 8% EBIT in
2024.
AKVA will continue to invest and improve their
solutions, both within Sea Based, Digital and Land Based
Technology.
About AKVA groupAKVA group is a technology and
service partner to the aquaculture industry worldwide. The company
has 1 429 employees, offices in 11 countries and had a total
turnover of NOK 3.4 billion in 2022. We are a public listed company
operating in one of the world’s fastest growing industries and
supply everything from single components to complete installations,
both for sea farming and land based aquaculture. AKVA group is
recognized as a pioneer and technology leader through more than 40
years.
Dated: 12 May 2023AKVA group ASA
Web: www.akvagroup.com
CONTACTS:
Knut Nesse |
Chief Executive
Officer |
Phone: |
+47 51 77 85 00 |
Mobile: |
+47 91 37 62 20 |
E-mail: |
knesse@akvagroup.com |
Rony Meinkøhn |
Chief Financial
Officer |
Phone: |
+47 51 77 85
00 |
Mobile: |
+47 98 20 67
76 |
E-mail: |
rmeinkohn@akvagroup.com |
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
- 2023 Q1 AKVA group report
- 2023 Q1 AKVA group presentation
Akva Group Asa (LSE:0DIP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Akva Group Asa (LSE:0DIP)
Historical Stock Chart
From Apr 2023 to Apr 2024