AKVA group ASA: 1Q 2018 financial reporting
High activity across all regions
AKVA group completed first quarter with growth in order intake and revenue. The revenue in first quarter of 2018 ended on 589 MNOK (510 MNOK) with an EBITDA of 59 MNOK (54 MNOK). First quarter EBITDA margin was 10.0% (10.6%). The Net Profit increased to 24 MNOK compared to 20 MNOK in Q1 2017.
AKVA group is ending the quarter with an order backlog of 1.43 BNOK.
A half-yearly dividend of 0.75 NOK per share was paid out in March 2018.
Cage Based Technology (CBT)
In the Nordic region, the order intake ended at 293 MNOK (244 MNOK) in the first quarter. ASA Nordic, Helgeland Plast and Sperre are strong contributors to the growth. AKVA Marine Services had a slower start of the year than expected due to weather conditions in Norway.
Americas had a strong quarter in terms of EBITDA with 6 MNOK compared to 1 MNOK in Q1 2017. All entities in the region had a stronger EBITDA than in the same period last year. The market activity is high in Americas and the region had an order intake of 187 MNOK (117 MNOK) in the quarter.
EME (Europe & Middle East) more than doubled the revenue from Q1 2017, with Scotland and deliveries to Russia through AKVA group ASA Export as the main contributors. Our new offices in Spain, Middle East and Greece has started to yield results and Spain had a strong quarter with an order intake of 8 MNOK.
Both AKVA group Software and Wise lausnir Ehf ends the quarter with stronger margins and EBITDA compared to the same quarter last year. As noted in a stock notice of January 19th, we are currently conducting a strategic evaluation of Wise lausnir Ehf with the objective to realize the potential of the business going forward. No conclusions have yet been made.
Land Based Technology (LBT)
Revenues and margins are up year on year for the land based segment. The order intake in Q1 2018 was 51 MNOK compared to 103 MNOK in Q1 2017. The low order intake in the quarter was a function of some projects has pushed out in time. The revenue increases as projects in the order book are starting to be delivered and margins have improved compared to the same quarter last year.
The balance sheet remains strong. Working capital as a percentage of 12 months rolling revenue is 5.8% (6.8%). The twelve month average working capital is 6.3%. Cash and unused credit facilities amounted to 462 MNOK at the end of Q1 (180 MNOK). Total assets and total equity amounted to 1,755 MNOK (1,425 MNOK) and 491 MNOK (446 MNOK) respectively, resulting in an equity ratio of 28% (31%) at the end of Q1.
Atlantis Subsea Farming AS
In partnership with Sinkaberg-Hansen AS and Egersund Net AS, AKVA group ASA established Atlantis Subsea Farming AS on February 1st, 2016 with the purpose of developing submersible fish-farming facilities for salmon on an industrial scale. Atlantis Subsea Farming AS applied for six development licenses to enable large-scale development and testing of the new technology and operational concept.
On February 22nd 2018 The Directorate announced that the Company has been granted one license, and the Atlantis Subsea Farming AS is now in a planning phase with regards to execution of the project.
Dividend of NOK 0.75 per share was paid in Q1 2018
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 0.75 NOK per share was paid in March 2018. Total dividend payout in March 2018 was 19.4 MNOK.
We have experienced continued high market activity across all regions and segments in the first quarter of 2018. The order intake in Q1 2018 was 639 MNOK (589 MNOK). The order backlog at the end of Q1 2018 was 1,430 MNOK (1,077 MNOK). MNOK 479 of total order backlog at end of Q1 relates to land based technology.
Following a significant increase in order intake and order backlog in 2017, the outlook for AKVA group is positive for 2018.
The activity in the Nordic cage based segment as well as within services continue to be good. Services and after sales are high priority in our strategy.
The market conditions in Chile are expected to remain favorable and we have implemented improvements in the operations and product portfolio, which further strengthen our competitive position and presence in that market.
The salmon farming industry expects growth in eastern Canada and Iceland and we are in the process of positioning ourselves better to participate in the expected growth in these markets.
The strategy to focus on the "Non-Salmon" activities around the Mediterranean Sea, has yielded good results in 2017 and in the first quarter of 2018. We will continue to develop and invest in these markets going forward.
The land based organization was re-organized during 2017 and at the beginning of 2018 is in even better shape to compete in this segment, where we see increased demand and investments from our customers.
The positive financial development has strengthened the Group, and during 2017 we have also carried out an extensive strategic review process, focusing on all aspects of the business to further improve our cost position, product offerings and ability to deliver sustainable aquaculture solutions to our customers.
About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 998 employees, offices in 11 countries and a total turnover of NOK 2.1 billion in 2017. 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
Corporate Headquarter is in Bryne Norway.
Dated: 15 May 2018
AKVA group ASA
|Hallvard Muri||Chief Executive Officer|
|Phone:||+47 51 77 85 00|
|Mobile:||+47 91 58 07 50|
|Simon Nyquist Martinsen||Chief Financial Officer|
|Phone:||+47 51 77 85 00|
|Mobile:||+47 91 63 00 42|