AKVA group ASA: Q3 2022 financial reporting

04 Nov 2022 08:00 CET

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 sheet
Working 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 Backlog
The 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).

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.

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 group
AKVA 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 2022
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 (mailto:rmeinkohn@akvagroup.com)


This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

More information:
Access the news on Oslo Bors NewsWeb site

574766_2022 Q3 AKVA group report.pdf
574766_2022 Q3 AKVA group presentation.pdf