AKVA group ASA: Q3 2022 financial reporting
November 04 2022 - 3:00AM
AKVA group ASA: Q3 2022 financial reporting
High activity level but challenging
profitability
AKVA group delivered high revenue for Q3
of MNOK 840 (738), an increase of 14% compared to Q3
2021.
EBITDA decreased from MNOK 79 in Q3 2021
to MNOK 25 in Q3 2022. Excluding accruals for restructuring and
cost saving programs EBITDA was MNOK 83 in Q3 2022. The Net Profit
decreased from MNOK 14 last year to MNOK -93 in Q3
2022.
High financial costs in Q3 2022 due to
write down of loan to AquaCon of MNOK 28.
The order intake in the quarter was MNOK
650 with a backlog of BNOK 1.6 at the end of September
2022.
At the end of 2021 AKVA group experienced
challenging profit margins due to high cost inflations and global
supply chain restrictions. This has been further intensified in
2022 due to the war between Ukraine and Russia. Examples include
increased freight rates, high energy prices and increased price
level on raw materials and key components in general. The estimated
P&L impact from the high cost inflations in the first half year
was MNOK 57. Furthermore, the global instability has a negative
impact on the net working capital and inventory levels. The
increased inventory levels are partly related to higher price
levels and partly to secure supplies for our production facilities
and products. The situation has normalized somewhat in Q3 2022 but
is still considered to be uncertain going forward.
Sea Based Technology (SBT)SBT revenue for Q3
2022 ended at MNOK 681 (603). EBITDA and EBIT for the segment in Q3
ended at MNOK 79 (70) and MNOK 44 (29), respectively. The related
EBITDA and EBIT margins were 11.5% (11.6%) and 6.4% (4.7%),
respectively. EBIT was negative impacted from cost accruals related
to restructuring and cost savings programs of MNOK 11 in the
quarter.
Order intake in Q3 2022 was MNOK 450 compared to
MNOK 563 in Q3 2021. Order backlog ended at MNOK 672 compared to
MNOK 808 last year.
The Nordic region experienced an increase in
revenue from MNOK 338 in Q3 2021 to MNOK 381 in Q3 2022.
In the Americas region, the revenue was MNOK
186, which is an increase from 140 MNOK in the third quarter last
year.
Europe and Middle East (EME) had a revenue of
MNOK 114 in Q3 2022, compared to the revenue of MNOK 125 in the
third quarter last year.
Land Based Technology (LBT)Revenues for the
second quarter were MNOK 134 (115). EBITDA and EBIT ended at MNOK
-63 (7) and MNOK -106 (4), respectively. The related EBITDA and
EBIT margins were -46.6% (5.7%) and -78.9% (3.4%). EBIT was
negative impacted from cost accruals related to restructuring and
cost savings programs of MNOK 87 in the quarter.
Order intake in Q3 2022 was MNOK 167 compared to
MNOK 34 in Q3 2021. Order backlog ended at MNOK 812, compared to
MNOK 867 last year.
Digital (DI)The revenue in the segment was MNOK
25 (20) in Q3 2022. EBITDA and EBIT ended at MNOK 9 (3) and MNOK 3
(0), respectively. The related EBITDA and EBIT margins were 38%
(13%) and 11.5% (-1.6%).
Balance sheetWorking capital as a percentage of
12 months rolling revenue is 5.9% (12.1%). Cash and unused credit
facilities amounted to MNOK 793 (311) at the end of Q3. Total
assets and total equity amounted to MNOK 3,477 and MNOK 1,181
respectively, resulting in an equity ratio of 34% (30.8%) at the
end of Q3 2022.
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. Due to
the slow financial performance in 2022 the company has decided not
to pay any dividend in the second half of 2022.
Order BacklogThe order backlog at the end of Q3
was MNOK 1,579 (1,740). MNOK 812 or 51% of total order backlog at
the end of Q3 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. The global instability and uncertainty related to
supply chain restrictions and cost inflations may continue to
impact the profitability on short term.
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.
Based on the underlying demand for salmon the
Group believes in strong market growth long term. To meet the
future demand a significant part of the production will come from
land-based facilities or other unconventional production
methods.
Digital products are an important part of AKVA
groups total product offering and the company will continue to
invest and develop attractive solutions, both within Sea Based and
Land Based Technology.
About AKVA groupAKVA group is a technology and
service partner to the aquaculture industry worldwide. The company
has 1 499 employees, offices in 11 countries and had a total
turnover of NOK 3.1 billion in 2021. 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: 04 November 2022AKVA 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
- 2022 Q3 AKVA group report
- 2022 Q3 AKVA group presentation
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