Good market activity across all regions
AKVA group completed first quarter with strong growth in order intake and revenue. The revenue in first quarter of 2017 ended on 510 MNOK (393 MNOK) with an EBITDA of 54 MNOK (40 MNOK). First quarter EBITDA margin was 10.6% (10.1%). The Net Profit increased to 20 MNOK compared to 13 MNOK in Q1 2016.
AKVA group is ending the quarter with an order backlog of approximately 1.1 BNOK.
A half-yearly dividend of 0.50 NOK per share was paid out in March 2017.
Cage Based Technology (CBT)We experienced increased revenue and margins in the cage based segment compared to the same period last year, with the Norwegian market as the main driver behind the growth. The acquisitions of AD Offshore and Sperre, done in Q2 and Q4 2016, is contributing to the growth in revenue and EBITDA. The market activity in Chile was good and this reflects an increase in revenue as well as an improved order backlog. Overall positive development for both Chile and Canada, although Canada had lower revenues, order intake improved.
For Export, Scotland increased revenues year on year with higher activity in the project market, which also contributing to building order backlog. Our Turkish operation is stable and we are ramping up activities in Spain, Greece and Iran.
Software (SW)The software segment had increased revenues compared to Q1 2016, but slightly reduced margins year on year. The margins in the Icelandic ERP business (Wise ehf) have been under pressure during the quarter causing the margin to decline. The Norwegian software business is about to launch further product modules as well as ramping up sales activities to improve financials going forward.
Land Based Technology (LBT)Revenues and margins are up year on year for the land based segment. The activity in the segment is high with both the order book and quote activity up compared to the end of Q1 2016. The restructuring of the Danish operations implemented in 2016 (AKVA group Denmark) has improved the cost position in the segment.
Balance sheetThe balance sheet remains strong. Working capital as a percentage of 12 months rolling revenue is 6.8% (4.3%). The twelve month average working capital is 5.7%, which is the lowest number in the last nine quarters other than Q4 2016. Cash and unused credit facilities amounted to 180 MNOK at the end of Q1 (230 MNOK).Total assets and total equity amounted to 1,425 MNOK (1,117 MNOK) and 446 MNOK (435 MNOK) respectively, resulting in an equity ratio of 31% (39%) at the end of Q1.
Atlantis Subsea Farming ASIn partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS, AKVA group ASA established the company Atlantis Subsea Farming AS on February 1st, 2016 with the purpose of developing submersible fish-farming facilities for salmon on an industrial scale. Atlantis Subsea Farming AS has applied for six development licenses to enable large-scale development and testing of the new technology and operational concept.
The Norwegian Directorate of Fisheries have informed the company that the concept has progressed another step in the process to get awarded development licenses. The Directorate will go ahead with processing the application limited to 2 licenses, but have rejected the application in terms of the other 4 permits applied for. On May 9th, 2017 the company appealed the decision. The appeal is limited to 2 of the 4 rejected licenses.
Dividend of NOK 0.50 per share was paid in Q1 2017The 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 the AKVA group ASAs' dividend policy a dividend of 0.50 NOK per share was paid in March 2017. Total dividend payout in March 2017 was 12.9 MNOK.
Order BacklogWe have experienced good market activity across all regions in the first quarter of 2017. The order intake in Q1 2017 was 589 MNOK (441 MNOK). The order backlog at the end of Q1 2017 was 1,077 MNOK (697 MNOK). MNOK 430 of total order backlog at end of Q1 is related to land based technology.
OutlookAs we continue to grow we are strengthening our organization and focus on improving our competitive position across all markets and the value chain.
We have in depth knowledge and competence across a wide range of potential export markets but are tending to focus our resources on those areas that we consider to offer the most substantial opportunities.
Within the Land Based segment we experience high quoting activity and expect activity to remain high in the coming quarters.
About AKVA groupAKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 842 employees, offices in 9 countries and a total turnover of NOK 1.6 billion in 2016. 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. The Corporate Headquarter is in Bryne Norway.
Dated: 11 May 2017AKVA group ASA