AKVA group ASA: 4Q 2020 financial reporting
Increased activity and order intake but challenging quarter for the Cage Based business
AKVA group delivered revenue for Q4 of 770 MNOK (655 MNOK), an increase of 18% compared to Q4 2019. EBITDA increased from -40 MNOK in Q4 2019 to 53 MNOK in Q4 2020. The Net Profit increased from -85 MNOK last year to 3 MNOK in Q4 2020.
The order intake in the quarter was 1.0 BNOK with a backlog of 1.9 BNOK at the end of December 2020. AKVA group was awarded contract for full grow-out RAS-project from Nordic Aqua Ningbo and two engineering and design contracts for full grow-out facilities in the quarter.
A dividend of NOK 1.00 per share to be 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. With regards to the Cage Based segment the impact is mixed as our portfolio of offerings are more diversified in regards of geography and customer needs.
Cage Based Technology (CBT)
CBT revenue for Q4 2020 ended at 593 MNOK (529). EBITDA for the segment in Q4 came out at 37 MNOK (31). The EBITDA margin was 6.3% (5.9%). EBIT and EBIT margin ended at -4 MNOK (-26%) and -0.7% (-4.9%), respectively.
The revenue in the Nordic region ended at 363 MNOK (323).
In the Nordic region, the order intake was 350 MNOK (382) in the fourth quarter, and the order backlog was 497 MNOK (494) at the end of December 2020.
In the Americas region, the activity remained relatively high with revenue of 141 MNOK, which is an increase from 123 MNOK in fourth quarter last year.
Europe and Middle East (EME) were on par with Q4 2019, delivering a revenue of 89 MNOK in the quarter.
Land Based Technology (LBT)
Revenues for the fourth quarter were 157 MNOK (110). EBITDA for Q4 2020 was
8 MNOK (-77) and EBIT was 9 MNOK (-82). EBITDA margin was 5.0% (-69.8%) and EBIT margin was 5.7% (-74.6%).
Order intake in Q4 2020 was 385 MNOK compared to 218 MNOK in Q4 2019. Order backlog ended at 975 MNOK compared to 677 MNOK last year.
Digital Solutions (DS)
The revenue in the segment was 20 MNOK (16) in Q4 2020. EBITDA and EBIT ended at 7 MNOK (5) and 5 MNOK (3), respectively. The related EBITDA and EBIT margins were 37.5% (33.6%) and 23.4% (18.4%).
Balance sheet
AKVA group’s financial position remains strong. Working capital as a percentage of 12 months rolling revenue is 8.5% (9.3%). Cash and unused credit facilities amounted to 521 MNOK (565) at the end of Q4. Total assets and total equity amounted to 3,258 MNOK (3,034 MNOK) and 1,022 MNOK (991) respectively, resulting in an equity ratio of 31.4% (32.7%) at the end of Q4 2020.
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 is to be paid in April 2020.
Order Backlog
The order backlog at the end of Q4 was 1,864 MNOK (1,694). 975 MNOK or 52% of total order backlog at the end of Q4 relates to Land Based Technology (LBT).
Outlook
In the short term, the company expects some headwind both in relation to the ongoing COVID-19 restrictions and costs related to cyber-attack. Long term fundamentals remain however unchanged as presented in the Capital Markets Day in November 2020.
Financial profile is strong, and the company is fully financed to execute on the organic growth strategy.
About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 1 437 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.
Dated: 12 March 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: | [email protected] |
| Rony Meinkøhn | Chief Financial Officer |
| Phone: | +47 51 77 85 00 |
| Mobile: | +47 98 20 67 76 |
| E-mail: | [email protected] |
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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