Based on a preliminary assessment of the results for the fourth quarter of 2019, AKVA group ASA (“The Company”) is expecting to report a negative EBIT for the period. The Company's current estimate is that the EBIT will be in the range of minus 25 MNOK to minus 30 MNOK, and that the EBIT margin will be in the range of -4% to -5%. This implies a full year EBIT of 136 MNOK (4.5%) to 141 MNOK (4.7%), compared to 130 MNOK (5%) in 2018.
The preliminary revenue in the quarter was lower than expected, especially within the Land Based segment, causing reduction in EBIT. The reduction was mainly caused by delays in projects.
Other elements that have contributed to a shortfall of EBIT in the fourth quarter are:
- Guarantee costs related to certain deliveries of feed barges and nets
- Provisions for bad debt and guarantee cost related to specific projects within the Land Based Segment
- Reduced margin expectations for a number of projects, specifically within the Nordic Cage Based segment
The preliminary EBIT for Egersund Net for the full year of 2019 is in absolute terms better than the (proforma) EBIT for 2018. Still, due to guarantee costs and low activity levels, the preliminary EBIT for Egersund Net in the fourth quarter of 2019 is negative, which represents a significant deterioration compared to the EBIT of 20 MNOK in Q4 2018 (which was exceptionally strong, as Q4 normally is the low season).
The fourth quarter results will be presented at Bryggegata 9, Oslo, 10:00 February 14th.
Dated: 20 January 2020
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 |
| Simon Nyquist Martinsen | Chief Financial Officer |
| Phone: | +47 51 77 85 00 |
| Mobile: | +47 91 63 00 42 |
| E-mail: | snmartinsen@akvagroup.com |
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act