AKVA group ASA: Q3 2023 financial reporting
November 10 2023 - 1:00AM
AKVA group ASA: Q3 2023 financial reporting
Acceptable activity level and
profitability in Sea Based but challenging post smolt market in
Norway
AKVA group delivered revenue for Q3 of
MNOK 817 (840), a decrease of 3% compared to Q3 2022.
EBITDA increased from MNOK 25 in Q3 2022
to MNOK 78 in Q3 2023.
Order intake of MNOK 600 (650) in Q3 and
order backlog of BNOK 2,6 at the end of September
2023.
Acquisition of 51% of the shares in
Submerged AS was completed in Q3 with the option to increase the
ownership to 100% in 2028 based on certain conditions
Ownership in Newfoundland Aqua Service
Ltd was increased from 70% to 98,5% in October through execution of
option
A rightsizing process, targeting MNOK 45
in annual cost savings, will be carried out in Q4 to adapt the
organization to the current and expected activity
level
Due to change in market conditions AKVA
will revise the medium-term financial targets during
Q4
The activity in the first three quarters of 2023
were somewhat higher compared to last year. Overall, the order
intake was sound with the award of RAS contract for Nordic Aqua
Partners (MEUR 40) and the post smolt contract for Cermaq Norway
(minimum MEUR 60) as the largest contracts. However, the
introduction of the resource tax has a negative impact on the
activity level both in Land Based and parts of the Sea Based
business, and the market outlook is challenging and uncertain.
Profitability is continuing to improve compared to last year 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
profitability in the Sea Based business segment is acceptable with
a healthy product mix supported by the commercial breakthrough of
deep farming concepts.
Due to change in market conditions a rightsizing
process, targeting MNOK 45 in annual cost savings, will be executed
during Q4 to adapt the organization to the current and expected
activity level.
Sea Based Technology (SBT)SBT revenue for Q3
2023 ended at MNOK 660 (681). EBITDA and EBIT for the segment in Q3
ended at MNOK 79 (79) and MNOK 41 (44), respectively. The related
EBITDA and EBIT margins were 11.9% (11.5%) and 6.3% (6.4%),
respectively.
Order intake in Q3 2023 was MNOK 574 compared to
MNOK 450 in Q3 2022. Order backlog ended at MNOK 731 compared to
MNOK 672 last year.
The Nordic region experienced an increase in
revenue from MNOK 417 in Q3 2022 to MNOK 381 in Q3 2023.
In the Americas region, the revenue was MNOK
171, which is a decrease from 186 MNOK in the third quarter last
year.
Europe and Middle East (EME) had a revenue of
MNOK 73 in Q3 2023, compared to the revenue of MNOK 114 in the
third quarter last year.
Land Based Technology (LBT)Revenues for the
third quarter were MNOK 124 (134). EBITDA and EBIT ended at MNOK
-11 (-63) and MNOK -13 (-106), respectively. The related EBITDA and
EBIT margins were -8.5% (-46.6%) and -10.4% (-78.9%). EBITDA and
EBIT in Q3 2022 was significantly impacted by cost accruals for
restructuring and cost saving programs.
Order intake in Q3 2023 of MNOK 4 compared to
MNOK 167 in Q3 2022. Order backlog ended at MNOK 1,728, compared to
MNOK 812 last year.
Digital (DI)The revenue in the segment was MNOK
33 (25) in Q3 2023. EBITDA and EBIT ended at MNOK 10 (9) and MNOK 0
(3), respectively. The related EBITDA and EBIT margins were 29.9%
(38.0%) and 0.8% (11.5%). The order intake was MNOK 21 (32) in the
quarter.
Balance sheetWorking capital as a percentage of
12 months rolling revenue is 8.6% (5.9%). Cash and unused credit
facilities amounted to MNOK 526 (793) at the end of Q3. Total
assets and total equity amounted to MNOK 3,732 and MNOK 1,176
respectively, resulting in an equity ratio of 31.8% (34.0%) at the
end of Q3 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 2023.
Order BacklogThe order backlog at the end of Q2
was MNOK 2,609 (1,579). MNOK 1,728 or 66% of total order backlog at
the end of Q3 relates to Land Based Technology (LBT).
OutlookSalmon prices expected to remain strong
driven by reduced supply
The implications from the introduction of new
resource tax in Norway are negative both for Land Based business
and parts of Sea Based business
Measures will be taken in Q4 23 to adopt the
cost base to the current and expected activity level
Due to change in market conditions AKVA will
revise the medium-term financial targets during Q4
About AKVA groupAKVA group is a technology and
service partner to the aquaculture industry worldwide. The company
has 1 410 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: 10 November 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 Q3 AKVA group report
- 2023 Q3 AKVA group presentation
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