AKVA group ASA: Q2 2021 financial reporting

Klepp stasjon, NORWAY


Acceptable activity and order intake but challenging profitability

AKVA group delivered revenue for Q2 of 832 MNOK (862 MNOK), a decrease of 3% compared to Q2 2020. EBITDA decreased from 93 MNOK in Q2 2020 to 79 MNOK in Q2 2021. The Net Profit decreased from 26 MNOK last year to 16 MNOK in Q2 2021.

The order intake in the quarter was 0.9 BNOK with a backlog of 1.9 BNOK at the end of June 2021.

Negative impact on profitability of approx. 25 MNOK related to final commercial clean-up and provisions for old land-based projects.

Negative P&L effect of approx. 5 MNOK in Q2 2021 related to COVID-19 restrictions.

A dividend of NOK 1.00 per share paid in April 2021.

AKVA group have maintained a strong focus on the measures implemented after the COVID-19 outbreak in March 2020 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. In the first half of 2020 the pandemic impacted our Land Based segment the most with cancellation and postponement of contracts. In 2021 the pandemic hit the Cage Based segment with restrictions on import of foreign labor to Norway.

Cage Based Technology (CBT)
CBT revenue for Q2 2021 ended at 716 MNOK (775). EBITDA and EBIT for the segment in Q2 ended at 95 MNOK (111) and 55 MNOK (68), respectively. The related EBITDA and EBIT margins were 13.3% (14.3%) and 7.7% (8.8%), respectively.

Order intake in Q2 2021 was 735 MNOK compared to 738 MNOK in Q2 2020. Order backlog ended at 848 MNOK compared to 963 MNOK last year.

The revenue in the Nordic region ended at 490 MNOK (536).

In the Nordic region, the order intake was 444 MNOK (484) in the second quarter, and the order backlog was 406 MNOK (484) at the end of June 2021.

In the Americas region, the revenue was 123 MNOK, which is a decrease from 166 MNOK in the second quarter last year.

Europe and Middle East (EME) had a revenue of 104 MNOK in Q2 2021, an increase from 72 MNOK in the second quarter last year.

Land Based Technology (LBT)
Revenues for the first quarter were 97 MNOK (74). EBITDA and EBIT ended at -20 MNOK (-17) and -23 MNOK (-22), respectively. The related EBITDA and EBIT margins were -20.8% (-23.0%) and -23.3% (-29.6%).

Order intake in Q2 2021 was 116 MNOK compared to 235 MNOK in Q2 2020. Order backlog ended at 948 MNOK compared to 771 MNOK last year.

Digital Solutions (DS)
The revenue in the segment was 18 MNOK (16) in Q2 2021. EBITDA and EBIT ended at 4 MNOK (3) and 0 MNOK (0), respectively. The related EBITDA and EBIT margins were 22.3% (19.5%) and -2.2% (2.5%).

Balance sheet
Working capital as a percentage of 12 months rolling revenue is 12.1% (9.0%). Cash and unused credit facilities amounted to 322 MNOK (516) at the end of Q2. Total assets and total equity amounted to 3,310 MNOK and 986 MNOK respectively, resulting in an equity ratio of 29.8% (31.5%) at the end of Q2 2021.

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. According to AKVA group ASAs’ dividend policy a dividend of 1.00 NOK per share was paid in April 2021.

Order Backlog
The order backlog at the end of Q2 was 1,862 MNOK (1,783). 948 MNOK or 51% of total order backlog at the end of Q2 relates to Land Based Technology (LBT).

Outlook
In the short term, the company expects the negative impact from the COVID-19 restrictions to continue. Long term fundamentals remain however unchanged as presented in the Capital Markets Day in November 2020.

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 Cage Based and Land Based Technology.

About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 1 489 employees, offices in 10 countries and had a total turnover of NOK 3.2 billion in 2020. 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.

Dated: 13 August 2021
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 MeinkøhnChief 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

Attachments



Attachments

2021 Q2 AKVA group presentation 2021 Q2 AKVA group report