Stable results in a challenging global situation

AKVA group delivered revenue for Q1 of 752 MNOK (852 MNOK), down 12% from Q1 2019. EBITDA decreased from 97 MNOK in Q1 2019 to 86 MNOK in Q1 2020. The Net Profit decreased from 36 MNOK last year to 21 MNOK in Q1 2020.

The order intake in the quarter was 709 MNOK with a backlog of 1.65 BNOK at the end of March 2020. Two RAS deliveries were cancelled April 2020.

Dividend of NOK 1.00 per share paid on 3 March 2020, before the main outbreak of Covid-19 in Norway.

Acquisition of 70% of the shares in Newfoundland Aqua Services Ltd. completed in February 2020.

AKVA group signed a strategically important Tube Net contract in April 2020.

On a global scale the whole quarter has been affected by the outbreak of the Covid-19 virus. In AKVA group we recognized early on the need for action. The Group implemented several measures to ensure the health and safety of our employees and customers, to monitor and optimize the overall liquidity in the company, to maintain the security of supply during the crisis and a steady order intake to ensure work for all in AKVA group. Although it is too early to tell the overall outcome of this crisis, AKVA group has seen moderate effects on ongoing business and have a high order backlog at the end of Q1 2020 when correcting for the cancellation of two major RAS deliveries.

Cage Based Technology (CBT)
CBT revenue for Q1 2020 ended at 657 MNOK (689). EBITDA for the segment in Q1 came out at 81 MNOK (77). The EBITDA margin was 12,3% (11,1%). EBIT and EBIT margin ended at 38 MNOK (36) and 5,8% (5,3%), respectively.

The revenue in the Nordic region ended at 404 MNOK (493).

In the Nordic region, the order intake ended at 269 MNOK (372) in the first quarter, and despite a decrease from same period last year the region continues to experience high activity with a strong pipeline.

In the Americas region, the activity is still on a relatively high level and the order book is increasing. The region had revenue of 122 MNOK, which is on same level as first quarter last year.

EME achieved revenue of 131 MNOK in Q1 2020, an increase from 73 MNOK in the same quarter last year. The operations in Scotland, Turkey and export out of Norway came in well above Q1 2019 revenue.

Software (SW)
The revenue in the segment was 17 MNOK (44). EBITDA and EBIT ended at 2 MNOK (8) and -1 MNOK (4), respectively. The related EBITDA and EBIT margins were 13.1% (18.6%) and -3.5% (9.8%). Last year the sold business Wise ehf, was included in revenue and EBITDA with 29 MNOK and 4 MNOK respectively.

Land Based Technology (LBT)
Revenues for the fourth quarter were 79 MNOK (119). EBITDA for Q1 2020 was
3 MNOK (12) and EBIT was 0 MNOK (8). EBITDA margin was 3.7% (10.1%) and EBIT margin -0.1% (6.8%).

Order intake in Q1 2020 was 10 MNOK compared to 300 MNOK in Q1 2019. The pipeline of projects continues to be strong, despite two RAS projects being cancelled in Q1. Order backlog ended at 605 MNOK compared to 629 MNOK last year.

Atlantis Subsea Farming AS
In January 2016, AKVA group, together with Sinkaberg-Hansen AS and Egersund Net AS, established Atlantis Subsea Farming AS for the purpose of developing submersible fish-farming facilities for salmon on an industrial scale, which will both enable better and more sustainable utilization of today's locations, and also open up the opportunity for farming at more exposed locations.

The Atlantis Subsea Farming project requires large-scale testing of the technological and operational solutions. On 22 February 2018, the Norwegian Directorate of Fisheries announced that the company has been granted one license. Atlantis Subsea Farming AS is now in a technology testing phase with regards to execution of the project, including testing with fish in the pen.

Dividend of NOK 1.00 per share was paid in Q1 2020
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. According to AKVA group ASAs’ dividend policy a dividend of 1.00 NOK per share was paid on 3 March 2020, before the main outbreak of Covid-19 in Norway.

Order Backlog
The order backlog at the end of Q1 was 1,650 MNOK (1,611). 605 MNOK or 37% of total order backlog at the end of Q1 is related to Land Based Technology (LBT).

AKVA group maintains focus on full grow out RAS facilities, despite temporary setback on China project.

Our net service businesses are about to be expanded, as a new service station is to be built in northern Norway with a partner and plans for additional stations are underway.

A new generation of Tube Nets have been launched. There is strong interest in the market for this product and AKVA group have signed a contract of 100 MNOK in April 2020 for several deliveries to one customer.

Establishment of net services internationally is proceeding as planned with the acquisition 70% of the shares in Newfoundland Aqua Service Ltd, a net service business in Canada.

Within the digital segment the interest for our precision feeding solution (Observe) is increasing and pipeline is growing.

About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 1 444 employees, offices in 10 countries and a total turnover of NOK 3.1 billion in 2019. 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 cage farming and land based aquaculture. AKVA group is recognized as a pioneer and technology leader through more than 40 years.

The presentation will be webcasted on 08 May 2020 at 10:00 CET. To join in on the presentation viewers can register trough the following link:

Dated: 8 May 2020
AKVA group ASA



Knut Nesse Chief Executive Officer
Phone:+47 51 77 85 00
Mobile:+47 91 37 62 20

Andreas Pierre HatjoullisChief Financial Officer
Phone:+47 51 77 85 00
Mobile:+47 92 69 99 33

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