AKVA group ASA: Q4 2022 financial reporting
Maintaining revenue growth on the back of strong order intake but still challenging profitability in Land Based
AKVA group delivered revenue for Q4 of MNOK 779 (833), a decrease of 6% compared to Q4 2021.
EBITDA decreased from MNOK 61 in Q4 2021 to MNOK 27 in Q4 2022.
Strong order intake of MNOK 889 (742) in Q4 and order backlog of BNOK 1.7 at the end of December 2022.
Award of new RAS contract (February 2023) 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.
At the end of 2021 AKVA group experienced challenging profit margins due to costs from high inflation rates and global supply chain restrictions. This was further intensified during first half of 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. Furthermore, the global instability impacted the net working capital and especially inventory levels. The increased inventory levels are partly related to higher price levels and partly to secure supplies for our production facilities and products. AKVA group has implemented several mitigating measures and monitors the situation closely. The situation was normalized somewhat in the second half of 2022 but is still considered to be uncertain going forward.
Sea Based Technology (SBT)
SBT revenue for Q4 2022 ended at MNOK 592 (650). EBITDA and EBIT for the segment in Q4 ended at MNOK 50 (49) and MNOK 16 (14), respectively. The related EBITDA and EBIT margins were 8.4% (7.6%) and 2.7% (2.2%), respectively.
Strong order intake in Q4 2022 of MNOK 823 compared to MNOK 695 in Q4 2021. Order backlog ended at MNOK 902 compared to MNOK 852 last year.
The Nordic region experienced a decrease in revenue from MNOK 370 in Q4 2021 to MNOK 304 in Q4 2022.
In the Americas region, the revenue was MNOK 198, which is an increase from 157 MNOK in the fourth quarter last year.
Europe and Middle East (EME) had a revenue of MNOK 90 in Q4 2022, compared to the revenue of MNOK 124 in the fourth quarter last year.
Land Based Technology (LBT)
Revenues for the fourth quarter were MNOK 163 (161). EBITDA and EBIT ended at MNOK -27 (9) and MNOK -28 (5), respectively. The related EBITDA and EBIT margins were -16.8% (5.3%) and -17.5% (3.1%). The reduced profitability is related to high cost base compared to current activity level, and challenging project margins. Cost saving initiatives have been implemented and the profitability is expected to improve in Q1 2023.
Order intake in Q4 2022 was MNOK 34 compared to MNOK 21 in Q4 2021. Order backlog ended at MNOK 683, compared to MNOK 726 last year.
Digital (DI)
The revenue in the segment was MNOK 24 (21) in Q4 2022. EBITDA and EBIT ended at MNOK 5 (3) and MNOK -2 (0), respectively. The related EBITDA and EBIT margins were 19,7% (13,1%) and -7.8% (-1.4%).
Balance sheet
Working capital as a percentage of 12 months rolling revenue is 6% (11.6%). Cash and unused credit facilities amounted to MNOK 735 (603) at the end of Q4. Total assets and total equity amounted to MNOK 3,555 and MNOK 1,131 respectively, resulting in an equity ratio of 31.8% (37.6%) at the end of Q4 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 Backlog
The order backlog at the end of Q4 was MNOK 1,688 (1,650). MNOK 683 or 40% of total order backlog at the end of Q4 relates to Land Based Technology (LBT).
Outlook
The 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.
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 group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 1 469 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 February 2023
AKVA 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
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