AKVA group ASA (AKVA) issued a stock exchange notice 20 January 2020, which included information about the preliminary EBIT for Q4 to be in the range of minus 25 MNOK to minus 30 MNOK.
During the finalization of year-end reporting for AKVA’s two subsidiaries in the Land Based segment in Denmark, it has been uncovered serious breaches of company policies within project follow up and project accounting. Significant losses in projects have not been reflected in the P&L before reporting to AKVA’s headquarters, thus overstating the results. The consequence when correcting the results is additional losses of around 70 MNOK. After this the expected EBIT for Q4 is below minus 100 MNOK and for the full year 2019 the expectation is an EBIT of around 60 MNOK.
The loss in Q4 is significant, still AKVA is in a solid financial position with sound financing, reasonable leverage, solid equity, available cash and strategic long term majority owners.
The underlying causes of the losses is amongst others due to cost overruns in projects. An external review is about to be started to evaluate and identify gaps in competence, and then strengthen the organization. Further, a review has been conducted to benchmark the order book with regards to margin expectations. The conclusion is that it is reasonable to assume normal margins in the projects currently in the order book, which includes amongst others larger orders for RAS facilities in Norway and internationally.
The fourth quarter results will be presented at Bryggegata 9, Oslo, 10:00 February 14th.
Dated: 07 February 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