AKVA group ASA's Impressive Financial Results for Q3 2024
Strong Financial Performance Driven by Sea Based
AKVA group ASA has reported an impressive quarterly revenue for Q3 2024, reaching MNOK 1,011, which shows significant growth compared to last year's revenue of MNOK 817. After accounting for a one-time gain of MNOK 76 associated with the Observe transaction, the adjusted revenue stands at MNOK 936, marking a 14.5% increase over Q3 2023.
In this quarter, the company saw its EBITDA rise to MNOK 199. When adjusting for the net gain attributed to the Observe transaction, the EBITDA is noted as MNOK 128, in contrast to MNOK 78 for the same quarter last year. This remarkable growth indicates strong operational performance and strategic execution amidst evolving market conditions.
The total order intake reached MNOK 803, a notable increase from MNOK 600 in the previous year, while the order backlog as of the end of September 2024 was recorded at BNOK 2.4. This robust order backlog demonstrates AKVA's firm position in the market and indicates a positive trend going forward.
A significant milestone reached during this quarter was the completion of the acquisition of Observe Technologies, enhancing AKVA's ownership stake from 33.7% to 100%. This acquisition is expected to foster innovation and expand the company's technological capabilities.
Additionally, AKVA group secured a Letter of Intent (LOI) from Cermaq for a Recirculating Aquaculture System (RAS) contract intended for a new post-smolt facility in Chile, boasting an estimated contract value of MEUR 30. This anticipated project underlines the company’s growing presence in international markets.
The Sea Based business segment continues to drive high activity levels, evidenced by increasing demand in the Nordic market. Although the Land Based segment remains softer in terms of revenue, incremental increases are being observed. The LOI with Cermaq is expected to positively influence revenue trends for Q4 and beyond. Furthermore, while uncertainty persists in the post-smolt market in Norway, gradual improvement is anticipated leading into 2025.
Detailed Breakdown by Segment
Sea Based Technology (SBT)
In Q3 2024, the revenue from the Sea Based Technology segment reached MNOK 740, up from MNOK 660 previously. The EBITDA and EBIT for this segment stood at MNOK 112 and MNOK 75, respectively, showcasing a substantial rise from the past year where figures were at MNOK 79 and MNOK 41. The EBITDA and EBIT margins also reflect improvement, recorded at 15.2% and 10.1% respectively.
Order intake for SBT in Q3 2024 was MNOK 635, showcasing growth due to heightened project activity, while the order backlog totaled MNOK 711, slightly down from MNOK 731 year-on-year.
Land Based Technology (LBT)
The Land Based Technology segment observed an increase in revenue to MNOK 162, up from MNOK 124. Despite incurring an EBITDA of MNOK 5, which is an improvement from last year's loss, the profitability remains challenging. The order intake for LBT was MNOK 138 compared to MNOK 4 in the previous year.
Digital Segment Performance
The Digital segment reported revenue of MNOK 34 in Q3 2024, a slight rise from MNOK 33. EBITDA for the segment, after necessary adjustments, ended at MNOK 11, while EBIT was MNOK 1. The margin growth indicates the segment’s potential profitability dynamics, aligning with the broader trend of increasing digital transformation in aquaculture.
Financial Position and Future Outlook
The balance sheet reflects working capital at 7.3% of the rolling 12-month revenue, down from 8.6%. At the end of Q3, cash and credit facilities amounted to MNOK 448. The company's total assets and equity registered at MNOK 4,018 and MNOK 1,301, respectively, indicating a solid equity ratio of 32.4%.
AKVA group's primary goal remains to maximize shareholder value through both share price increase and dividend payments. However, the decision has been made to withhold any dividend payments for the latter half of 2024 considering overall strategic investments.
Looking ahead, AKVA is focusing on maintaining strong revenue, aiming to exceed BNOK 3.6 with an EBIT target of 5% in 2024, reflecting their confidence in the market's resilience.
About AKVA group
AKVA group has established itself as a leading technology and service partner within the global aquaculture industry. With a workforce of 1,409 employees and operations across 12 countries, the company achieved a total turnover of NOK 3.4 billion in the last fiscal year. Its extensive experience of over 40 years in the industry has positioned AKVA as a trusted provider of both individual components and comprehensive installations for sea farming and land-based aquaculture.
Frequently Asked Questions
What was AKVA group's total revenue for Q3 2024?
The total revenue for Q3 2024 was MNOK 1,011, which reflects a solid growth compared to previous periods.
How did the Sea Based Technology segment perform?
The Sea Based Technology segment reported revenues of MNOK 740 and significantly improved profitability indicators compared to last year.
What is the company’s outlook for the future?
AKVA group anticipates a gradual improvement in the post-smolt market and aims for a revenue target exceeding BNOK 3.6 in 2024.
Is AKVA group paying dividends in 2024?
AKVA group has decided to not distribute dividends for the second half of 2024 in favor of strategic reinvestment.
Who should I contact for more information about the company?
Contact Knut Nesse, CEO, or Ronny Meinkøhn, CFO, for additional inquiries via the provided contact information.
