AKVA group ASA

Q4 2023 financial reporting

Acceptable activity level but challenging profitability.

AKVA group delivered revenue for Q4 of MNOK 800 (779), an increase of 3% compared to Q4 2022.

EBITDA increased from MNOK 27 in Q4 2022 to MNOK 41 in Q4 2023. Adjusted for MNOK 10 in costs related to the rightsizing process EBITDA was MNOK 51 in Q4 2023.

The rightsizing process, with estimated MNOK 45 in annual cost savings, was completed in Q4.

Order intake of MNOK 718 (889) in Q4 and order backlog of BNOK 2,4 at the end of December 2023.

The medium-term financial targets are revised and AKVA is aiming for revenue of minimum BNOK 3,6 and EBIT of 4-5% in 2024.

The activity in 2023 was at the same level as last year. Overall, the order intake was sound with the award of RAS contract for Nordic Aqua Partners (MEUR 40) and the post smolt contract for Cermaq Norway (minimum MEUR 60) as the largest contracts. However, the introduction of the resource tax has a negative impact on the activity level both in Land Based and parts of the Sea Based business. The market outlook for the post smolt market in Norway is still challenging and uncertain but is expected to normalize during the second half of 2024.

Profitability in 2023 is improved compared to last year 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 profitability in the Sea Based business segment is acceptable with a healthy product mix. A rightsizing process, with annual estimated cost savings of MNOK 45, was completed in Q4 2023. The costs related to the process was MNOK 10 and had a negative impact on the profitability in the quarter.

Sea Based Technology (SBT)
SBT revenue for Q4 2023 ended at MNOK 618 (592). EBITDA and EBIT for the segment in Q4 ended at MNOK 55 (50) and MNOK 17 (16), respectively. The related EBITDA and EBIT margins were 8.8% (8.4%) and 2.8% (2.7%), respectively.

Order intake in Q4 2023 was MNOK 679 compared to MNOK 823 in Q4 2022. Order backlog ended at MNOK 792 compared to MNOK 902 last year.

The Nordic region experienced an increase in revenue from MNOK 304 in Q4 2022 to MNOK 359 in Q4 2023.

In the Americas region, the revenue was MNOK 166, which is a decrease from 198 MNOK in the fourth quarter last year.

Europe and Middle East (EME) had a revenue of MNOK 92 in Q4 2023, compared to the revenue of MNOK 90 in the fourth quarter last year.