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AKVA group ASA: 3Q 2020 financial reporting

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AKVA group ASA
·6-min read
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Solid quarter for the Cage Based business – total Group EBITDA of 105 MNOK in Q3

AKVA group delivered revenue for Q3 of 806 MNOK (771 MNOK), an increase of 4% compared to Q3 2019. EBITDA decreased from 115 MNOK in Q3 2019 to 105 MNOK in Q3 2020. The Net Profit decreased from 42 MNOK last year to 36 MNOK in Q3 2020. A net gain of 18 MNOK from the sale of Wise lausnir ehf was included in the 2019 revenue, EBITDA and net profit.

The order intake in the quarter was 647 MNOK with a backlog of 1.63 BNOK at the end of September 2020. AKVA group have signed engineering and design contracts for full grow-out facilities in the quarter.

AKVA group have decided to conduct a strategic review of AKVA Marine Services.

The COVID-19 pandemic has had limited impact on AKVA group in the quarter.

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. In the first half of 2020 the pandemic impacted our Land Based segment the most with cancellation and postponement of contracts. With regards to the Cage Based segment the impact was mixed as our portfolio of offerings are more diversified in regards of customer needs.

Cage Based Technology (CBT)
CBT revenue for Q3 2020 ended at 694 MNOK (651). EBITDA for the segment in Q3 came out at 100 MNOK (98). The EBITDA margin was 14,4% (15,0%). EBIT and EBIT margin ended at 60 MNOK (58) and 8,6% (8,8%), respectively. A net gain of 18 MNOK of the sale of Wise lausnir ehf is included in the abovementioned amounts in Q3 2019.

The revenue in the Nordic region ended at 444 MNOK (436).

In the Nordic region, the order intake was 434 MNOK (375) in the third quarter, and the order backlog was 509 MNOK (435) at the end of September 2020.

In the Americas region, the activity is relatively high with revenue of 187 MNOK, which is an increase from 142 MNOK third quarter last year.

Europe and Middle East (EME) had a decrease in revenue, down from 74 MNOK in Q3 2019 to 63 MNOK in Q3 2020. The region had a solid order intake in the quarter resulting in an order backlog of 152 MNOK (128) end of September 2020.

Software (SW)
The revenue in the segment was 16 MNOK (28). EBITDA and EBIT ended at 5 MNOK (8) and 2 MNOK (4), respectively. The related EBITDA and EBIT margins were 31.6% (27.5%) and 14.3% (15.3%). Last year the sold business Wise lausnir ehf, was included in revenue and EBITDA with 12 MNOK and 0.5 MNOK respectively.

Land Based Technology (LBT)
Revenues for the third quarter were 96 MNOK (92). EBITDA for Q3 2020 was
0.2 MNOK (9) and EBIT was -5 MNOK (4). EBITDA margin was 0.2% (10.0%) and EBIT margin was -4.7% (4.0%).

The COVID-19 outbreak is still a challenge for our Land Based business, but activity has picked up from second quarter this year.

Order intake in Q3 2020 was 72 MNOK in LBT compared to 50 MNOK in Q3 2019. Order backlog ended at 747 MNOK compared to 569 MNOK last year.

Balance sheet
AKVA group’s financial position remains strong. Working capital as a percentage of 12 months rolling revenue is 10.3% (14.8%). Cash and unused credit facilities amounted to 562 MNOK (535) at the end of Q3. Total assets and total equity amounted to 3,302 MNOK (3,175 MNOK) and 1,074 MNOK (1,096) respectively, resulting in an equity ratio of 33% (35%) at the end of Q3.

Atlantis Subsea Farming AS
In January 2016, AKVA group, together with Sinkaberg-Hansen AS and Egersund Net AS, established Atlantis Subsea Farming AS for the purpose of developing submersible fish-farming facilities for salmon on an industrial scale, which will both enable better and more sustainable utilization of today's locations, and also open up the opportunity for farming at more exposed locations.

The Atlantis Subsea Farming project requires large-scale testing of the technological and operational solutions. On 22 February 2018, the Norwegian Directorate of Fisheries announced that the company was granted one license.

Atlantis Subsea Farming AS is now in a technology testing phase with regards to execution of the project, including testing with fish in the pen. During June 2020 the fish from the second batch in Atlantis were harvested and we are planning the next batch at an even more exposed site for 2020/2021.

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 1.00 NOK per share was paid on 3 March 2020, before the main outbreak of Covid-19 in Norway. Due to the overall uncertainty caused by COVID-19 the company has decided not to pay any dividend in the second half of 2020.

Order Backlog
The order backlog at the end of Q3 was 1,625 MNOK (1,524). 747 MNOK or 46% of total order backlog at the end of Q3 is related to Land Based Technology (LBT).

AKVA group maintains focus on full grow out RAS facilities, and have signed several engineering and design contracts. The last one with the Norwegian company Ecofisk AS with potential delivery contract and equity participation from AKVA group.

The interest for the patented TubenetTM solution remains strong, and delivery of the 100 MNOK contract signed in April 2020 is still ongoing.

AKVA group remain focused on developing digital solutions as integrated part of our product offerings.

The low salmon price causes some uncertainty on the customers willingness to invest.

AKVA group will host a webcasted Capital Markets Day on 24 November 2020.

About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 1 449 employees, offices in 10 countries and a total turnover of NOK 3.1 billion in 2019. 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.

Dated: 6 November 2020
AKVA group ASA



Knut Nesse

Chief Executive Officer


+47 51 77 85 00


+47 91 37 62 20


Rony Meinkøhn

Chief Financial Officer


+47 51 77 85 00


+47 98 20 67 76


This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act