AKVA group ASA

Q2 2023 financial reporting

Record high activity and improved profitability

AKVA group delivered revenue for Q2 of MNOK 940 (907), an increase of 4% compared to Q2 2022.

EBITDA increased from MNOK 3 in Q2 2022 to MNOK 86 in Q2 2023.

Strong order intake of MNOK 1,840 (827) in Q2 and record high order backlog of BNOK 2,9 at the end of June 2023.

Award of new post smolt contract with Cermaq Norway with estimated contract value of minimum MEUR 60

Commercial breakthrough of deep sea farming concepts in Q2 2023

The activity in the first two quarters of 2023 were high and above last year. Overall, the order intake was sound with the newly awarded RAS contract for Nordic Aqua Partners (MEUR 40) and the post smolt contract for Cermaq Norway (minimum MEUR 60) as the largest contracts. Profitability continuing to improve 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. The profitability in the Sea Based business segment was positively impacted by the product mix and the commercial breakthrough of deep sea farming concepts in the quarter.

Sea Based Technology (SBT)
SBT revenue for Q2 2023 ended at MNOK 733 (736). EBITDA and EBIT for the segment in Q2 ended at MNOK 82 (40) and MNOK 46 (3), respectively. The related EBITDA and EBIT margins were 11.2% (5.5%) and 6.3% (0.5%), respectively.

Order intake in Q2 2023 was MNOK 690 compared to MNOK 704 in Q2 2022. Order backlog ended at MNOK 817 compared to MNOK 902 last year.

The Nordic region experienced an increase in revenue from MNOK 453 in Q2 2022 to MNOK 475 in Q2 2023.

In the Americas region, the revenue was MNOK 158, which is a decrease from 179 MNOK in the second quarter last year.

Europe and Middle East (EME) had a revenue of MNOK 100 in Q2 2023, compared to the revenue of MNOK 104 in the second quarter last year.

Land Based Technology (LBT)
Revenues for the second quarter were MNOK 174 (145). EBITDA and EBIT ended at MNOK -4 (-41) and MNOK -6 (-45), respectively. The related EBITDA and EBIT margins were -2.3% (-28.5%) and -3.7% (-31.2%).
Strong order intake in Q2 2023 of MNOK 1,062 compared to MNOK 96 in Q2 2022. Order backlog ended at MNOK 1,905, compared to MNOK 779 last year.

Digital (DI)
The revenue in the segment was MNOK 33 (26) in Q2 2023. EBITDA and EBIT ended at MNOK 8 (5) and MNOK -2 (1), respectively. The related EBITDA and EBIT margins were 23.8% (17.8%) and -5.3% (2.1%). The order intake was high of MNOK 89 (28) in the quarter.