AKVA group ASA: Q1 2023 financial reporting

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AKVA group ASA
AKVA group ASA

High activity despite challenging market conditions

AKVA group delivered revenue for Q1 of MNOK 874 (849), an increase of 3% compared to Q1 2022.

EBITDA decreased from MNOK 69 (excluding one-time gain of MNOK 33 from sale of shares in Atlantis Subsea Farming AS) in Q1 2022 to MNOK 59 in Q1 2023.

Acceptable order intake of MNOK 1,170 (1,048) in Q1 and order backlog of BNOK 2 at the end of March 2023.

Award of new RAS contract with NOAP for next 4,000 tonnes (phase 2). Estimated contract value of MEUR 40.

Market for post smolt project in Norway still on hold due to the resource tax.

Commercial breakthrough of deep sea farming concepts in April

The activity in the first quarter of 2023 was high and above last year. Overall, the order intake was sound with the newly awarded RAS contract for NOAP as the largest contributor. Profitability improved compared to previous quarters but is still below expectations. The Land Based business segment is still impacted by a high cost base compared to current activity level and by lower profitability in parts of the project portfolio. The profit margins in this part of the project portfolio were written down significantly in Q2 and Q3 2022 mainly due to cost inflations and will run at a lower profit margin until completion end of Q3 2023. Furthermore, the profitability in the Sea Based business segment was negative impacted by the product mix in the quarter.

The implications from the new resource tax remain uncertain. Most likely will the resource tax have a negative impact on activity level on short and medium term, especially within the post smolt market in Norway

Sea Based Technology (SBT)

SBT revenue for Q1 2023 ended at MNOK 655 (676). EBITDA and EBIT for the segment in Q1 ended at MNOK 55 (94) and MNOK 19 (58), respectively. The related EBITDA and EBIT margins were 8.5% (13.9%) and 2.9% (8.6%), respectively. Adjusted for sale of shares in Altantis Subsea Farming AS (“Atlantis”) of MNOK 33 the EBITDA and EBIT margins in Q1 2022 are 9,5% and 3,9%.

Order intake in Q1 2023 was MNOK 613 compared to MNOK 759 in Q1 2022. Order backlog ended at MNOK 861 compared to MNOK 935 last year.

The Nordic region experienced a decrease in revenue from MNOK 492 in Q1 2022 to MNOK 425 in Q1 2023.

In the Americas region, the revenue was MNOK 121, which is an increase from 97 MNOK in the first quarter last year.

Europe and Middle East (EME) had a revenue of MNOK 109 in Q1 2023, compared to the revenue of MNOK 87 in the first quarter last year.

Land Based Technology (LBT)
Revenues for the first quarter were MNOK 192 (151). EBITDA and EBIT ended at MNOK -2 (4) and MNOK -5 (0), respectively. The related EBITDA and EBIT margins were -1.3% (2.8%) and -2.4% (0.3%).