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AKVA Group — Earnings Release 2019
Jan 20, 2020
3532_iss_2020-01-20_72eacf24-b839-4fd9-9e61-cf902dba1356.html
Earnings Release
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AKVA group ASA: Q4 preliminary result
AKVA group ASA: Q4 preliminary result
Based on a preliminary assessment of the results for the fourth quarter of
2019, AKVA group ASA ("The Company") is expecting to report a negative EBIT for
the period. The Company's current estimate is that the EBIT will be in the range
of minus 25 MNOK to minus 30 MNOK, and that the EBIT margin will be in the range
of -4% to -5%. This implies a full year EBIT of 136 MNOK (4.5%) to 141 MNOK
(4.7%), compared to 130 MNOK (5%) in 2018.
The preliminary revenue in the quarter was lower than expected, especially
within the Land Based segment, causing reduction in EBIT. The reduction was
mainly caused by delays in projects.
Other elements that have contributed to a shortfall of EBIT in the fourth
quarter are:
i. Guarantee costs related to certain deliveries of feed barges and nets
ii. Provisions for bad debt and guarantee cost related to specific projects
within the Land Based Segment
iii. Reduced margin expectations for a number of projects, specifically within
the Nordic Cage Based segment
The preliminary EBIT for Egersund Net for the full year of 2019 is in absolute
terms better than the (proforma) EBIT for 2018. Still, due to guarantee costs
and low activity levels, the preliminary EBIT for Egersund Net in the fourth
quarter of 2019 is negative, which represents a significant deterioration
compared to the EBIT of 20 MNOK in Q4 2018 (which was exceptionally strong, as
Q4 normally is the low season).
The fourth quarter results will be presented at Bryggegata 9, Oslo, 10:00
February 14th.
Dated: 20 January 2020
AKVA group ASA
Web: www.akvagroup.com
CONTACTS:
Knut Nesse Chief Executive Officer
Phone: +47 51 77 85 00
Mobile: +47 91 37 62 20
E-mail: [email protected]
Simon Nyquist Martinsen Chief Financial Officer
Phone: +47 51 77 85 00
Mobile: +47 91 63 00 42
E-mail: [email protected]
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act