AKVA group ASA

2Q and 1H 2020 financial reporting

Stable results in a challenging global situation – 93 MNOK EBITDA in Q2

AKVA group delivered revenue for Q2 of 862 MNOK (798 MNOK), an increase of 8% compared to Q2 2019. EBITDA decreased from 101 MNOK in Q2 2019 to 93 MNOK in Q2 2020. The Net Profit decreased from 58 MNOK last year to 47 MNOK in Q2 2020.

The order intake in the quarter was 994 MNOK with a backlog of 1.78 BNOK at the end of June 2020. AKVA group signed a strategically important Tubenet^TM contract in April 2020.

AKVA group exercised the option to acquire the remaining shares in Sperre AS in May 2020.

AKVA group have remained focused on the implemented measures started after the COVID-19 outbreak in March 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. So far, the pandemic has 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 customer needs.

Cage Based Technology (CBT)
CBT revenue for Q2 2020 ended at 775 MNOK (664). EBITDA for the segment in Q2 came out at 111 MNOK (85). The EBITDA margin was 14,3% (12,8%). EBIT and EBIT margin ended at 68 MNOK (46) and 8,8% (6,9%), respectively.

The revenue in the Nordic region ended at 532 MNOK (482).

In the Nordic region, the order intake ended at 304 MNOK (204) in the second quarter, the region continues to experience high activity with a strong pipeline.

In the Americas region, the activity is on a relatively high level and the order book is increasing. The region had revenue of 171 MNOK, which is an increase from 124 MNOK second quarter last year.

EME achieved revenue of 72 MNOK in Q2 2020, an increase from 58 MNOK in the same quarter last year. The operations in Scotland, Turkey and export out of Norway came in well above Q2 2019 revenue.

Software (SW)
The revenue in the segment was 16 MNOK (39). EBITDA and EBIT ended at 3 MNOK (4) and 0 MNOK (0), respectively. The related EBITDA and EBIT margins were 19.5% (9.6%) and 2.5% (-0.5%). Last year the sold business Wise ehf, was included in revenue and EBITDA with 23 MNOK and 0.3 MNOK respectively.

Land Based Technology (LBT)
Revenues for the second quarter were 70 MNOK (95). EBITDA for Q2 2020 was
-21 MNOK (12) and EBIT was -26 MNOK (7). EBITDA margin was -29.9% (12.2%) and EBIT margin -36.9% (7.5%).