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AKVA Group Interim / Quarterly Report 2010
3532_rns_2010-08-19_584c6769-2386-493b-b683-9b01efb29dc2.pdf
Interim / Quarterly Report
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AKVA GROUP
Quarterly report Nr 2 – 2010
Second quarter report 2010
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AKVA GROUP
Highlights
- Operating revenues in 2Q were 176.3 MNOK versus 164.3 MNOK last year. Year to date operating revenues were 334.3 MNOK versus 316.7 MNOK last year.
- Operating loss of 11.9 MNOK in 2Q compared to a loss of 0.4 MNOK in same period last year. Restructuring charges of 6.3 MNOK impacted negatively.
- A waiver extending through 4Q 2010 agreed in 2Q with the group's main bank.
- Order backlog at the end of 2Q2010 was 316 MNOK versus 183 MNOK end of 2Q last year.
In the comments below on the financial accounts, the 2009 figures are presented in parentheses following the 2010 stated values when included. From the change in the group structure that was implemented in the second half last year with a flatter structure, the group does no longer operate according to the split between the two former operational segments OPTECH and INTECH.
AKVA group supply technology for complete cage based fish farms.
Operations and profit
Operating revenues in 2Q were 176.3 MNOK (164.3 MNOK) with an EBITA of -11.9 MNOK (0.4 MNOK) Last year's initiated downsizing of the organisation have not given the expected and necessary effects. Therefore, further restructuring of the organisation have started. The aim is to reduce the fixed cost base and at the same time improve precision and quality in the delivery of solutions to our customers. Restructuring charges of 6.3 MNOK have been booked in the quarter with an expected 10 MNOK of yearly cost reduction. In addition we have experienced cost overrun on some land based projects.
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AKVA GROUP
The depreciations in 2Q were 7.5 MNOK (7.8) which gave an EBIT of -19.5 MNOK (-7.4). Net financial items were 1.4 MNOK (3.0). The reduction is related to currency gain while the net interest bearing costs is somewhat higher than the year before. Profit before tax in 2Q was -20.9 MNOK (-10.4) and net loss -16.3 MNOK after allowing for taxes of -4.6 MNOK.
YTD operating revenues were 334.3 MNOK (316.7) with and EBITDA of -11.4 MNOK (-2.9). Depreciations and amortizations amounted to 15.0 MNOK (15.6) resulting in an EBIT of -26.4 MNOK (-18.5). YTD profit before tax was -30.0 MNOK (23.0) after allowing for net financial items of 3.6 MNOK (4.4). Net profit in the first half 2010 was -21.6 MNOK (-18.0).
Hardware includes Cages, barges, feed systems and other technology to operate fish farms. Recirc includes the delivery of systems for recirculation of water in land based farms. Software is software solutions and professional services related to this.
Balance sheet and cash flow
Working capital in the group balance sheet, defined as non-interest bearing current assets less non-interest bearing current liabilities was 112.6 MNOK down from 120.0 MNOK from the beginning of the year and down from 141.3 MNOK from end of 2Q last year. The increase in 2Q is part of a seasonal pattern. Focus is maintained on containing the working capital.
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AKVA GROUP
Net interest-bearing debt amounted to 156.3 MNOK at the end of 2Q versus 141.9 MNOK at the beginning of the year. Gross interest bearing debt amounted to 210.8 MNOK versus 198.3 MNOK at the beginning of the year. Cash and unused credit facilities amounted to 62.0 MNOK. Total assets and total equity amounted to 681.2 MNOK and 233.9 MNOK respectively, resulting in an equity ratio of 34.3%.
Investments in the first half amounted to 9.2 MNOK whereof 3.8 MNOK is capitalized R&D expenses in accordance with IFRS.
A waiver extending through 4Q 2010 relating to the financial covenants of the major credit facilities and loans was agreed with the company's main bank in 2Q.
AKVA group supply technology for complete land based fish farms.
Shareholder issues
Earnings per share for 2Q 2010 were -0.95 NOK (-0.53). The calculation is based on 17.222.869 shares average.
Subsequent of the closing of 1H Mr Knut Molaug asked the Board of Directors to be released from his position as CEO of AKVA group ASA which the Board accepted. The Board would like to thank Mr. Molaug for his efforts and contributions for the development of the company.
The search for a new CEO has started, meanwhile the CFO Morten Nærland will be the acting CEO of the group.
Market and future outlook
The market situation is fairly much the same as at the end of 1Q. UK and Canada are developing fairly well and there are some signs that the Chilean market is slowly improving although from very low level compared to the past. In April the group was awarded a major contract for Cromaris in Croatia for delivery of about 54 MNOK worth of equipment and technology. This is an important contract in positioning the group for cage based farming in the Mediterranean area. However in the Norwegian market, which by far is the most important, the visibility is less
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AKVA GROUP
clear. The investment activity is relative low despite the salmon industry enjoying high salmon prices and sound underlying earnings. In face of this the group is undergoing a restructuring process aiming at reducing the cost base as well as improving operations to restore profitability at lower revenue levels.
The order backlog was at the end of 2Q 316 MNOK versus 182 MNOK at the end of 2Q last year.
Statement from the Board and Chief Executive Officer
We confirm that, to the best of our knowledge, the condensed set of financial statements for 2Q 2010, which have been prepared in accordance with IAS 34 Interim Financial Statements gives a true and fair view of the Company's consolidated assets, liabilities, financial position and results of operations, and that the interim management report includes a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph.
Bryne, 18 August - 2010
Board of Directors, AKVA group ASA
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Hovedtall fra regnskapet
Main figures from financial accounts
| RESULTATBEGNSKAP / INCOME STATEMENT | |||||
|---|---|---|---|---|---|
| (RISK 1000) | 2010 | 2009 | 2010 | 2009 | 2008 |
| BO | 2Q | YTD | YTD | Total | |
| DRIFTSINNTEKTER / OPERATING REVENUES | 176 297 | 164 285 | 334 320 | 316 664 | 599 345 |
| Driftskostnader eks. avskrivninger / Operating costs ex depreciations | 188 217 | 163 898 | 345 720 | 319 560 | 610 872 |
| DRIFTSRES. FØR AVSKRIVN. / OPER. PROFIT BEFORE DEPR.(EBITDA) | -11 921 | 387 | -11 401 | -2 897 | -11 527 |
| Avskrivninger / Depreciation | 7 531 | 7 793 | 15 040 | 15 631 | 30 866 |
| DRIFTSRESULTAT / OPERATING PROFIT (EBIT) | -19 451 | -7 405 | -26 441 | -18 527 | -42 392 |
| Netto rentekostnad / Net interest expense | -2 853 | -2 431 | -5 212 | -4 254 | -8 781 |
| Andre finansielle poster / Other financial items | 1 426 | -568 | 1 613 | -191 | -830 |
| Sum finansielle poster / Net financial items | -1 427 | -2 999 | -3 600 | -4 445 | -9 611 |
| RESULTAT FØR SKATT / PROFIT BEFORE TAX | -20 878 | -10 405 | -30 041 | -22 972 | -52 003 |
| Skattekostnad / Taxes | -4 588 | -1 239 | -8 431 | -4 979 | -12 875 |
| RESULTAT ETTER SKATT / NET PROFIT | -16 290 | -9 165 | -21 610 | -17 993 | -39 128 |
| Resultat per aksje / Earnings per share | -0,95 | -0,53 | -1,25 | -1,04 | -2,27 |
| Gj.snitt antall utestående aksjer (i 1000) / Average number of shares outstanding (in 1 000) | 17 223 | 17 223 | 17 223 | 17 223 | 17 223 |
| BALANCE / BALANCE SHEET | 2010 | 2009 | 2008 | ||
| --- | --- | --- | --- | --- | |
| (RISK 1000) | 30,6 | 30,6 | 31,12 | ||
| Immaterielle eiendeler / Intangible fixed assets | 242 529 | 256 182 | 243 920 | ||
| Anleggsmidler / Fixed assets | 38 252 | 47 789 | 39 071 | ||
| Finansielle anleggsmidler/Long-term financial assets | 972 | 1 103 | 1 069 | ||
| ANLEGGSMIDLER / FIXED ASSETS | 281 753 | 305 075 | 284 061 | ||
| Varebeholdning / Stock | 138 263 | 121 855 | 116 248 | ||
| Kundefordringer / Trade receivables | 162 148 | 149 824 | 125 391 | ||
| Andre fordringer / Other receivables | 44 583 | 25 090 | 27 477 | ||
| Betalingsmidler / Cash and cash equivalents | 54 436 | 51 235 | 58 161 | ||
| OMLØPSMIDLER / CURRENT ASSETS | 399 431 | 348 004 | 327 277 | ||
| SUM EIENDELER / TOTAL ASSETS | 681 183 | 653 078 | 611 338 | ||
| Innskutt egenkapital / Paid in capital | 267 087 | 267 087 | 267 087 | ||
| Opptjent egenkapital / Retained equity | -33 162 | 26 527 | -10 447 | ||
| SUM EGENKAPITAL / TOTAL EQUITY | 233 925 | 293 614 | 256 640 | ||
| Annen langsiktig gjeld / Other long term debt | 4 057 | 10 109 | 5 561 | ||
| Langsiktig rentebærende gjeld / Long-term interest bearing debt | 148 295 | 107 568 | 150 651 | ||
| LANGSIKTIG GJELD / LONG-TERM DEBT | 152 352 | 117 677 | 156 212 | ||
| Kortsiktig rentebærende gjeld / Short-term interest bearing debt | 62 470 | 86 323 | 49 364 | ||
| Annen kortsiktig gjeld / Other current liabilities | 232 437 | 155 463 | 149 123 | ||
| KORTSIKTIG GJELD / SHORT-TERM DEBT | 294 906 | 241 787 | 198 487 | ||
| SUM EGENKAPITAL OG GJELD / TOTAL EQUITY AND DEBT | 681 183 | 653 078 | 611 338 |
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| ENDRING EGENKAPITAL / CHANGES IN EQUITY
(Note 1000) | 2010
2Q | 2009
2Q | 2010
YTD | 2009
YTD | 2009
Total |
| --- | --- | --- | --- | --- | --- |
| Bokført egenkapital ved periodens begynnelse / Book equity at the beginning of the period | 250 436 | 299 843 | 256 640 | 309 595 | 309 595 |
| Periodens resultat / The period's net profit | -16 290 | -9 165 | -21 610 | -17 993 | -39 128 |
| Endring i virkelig verdi av sikringsinstrumentet ved kontantstrømskring / Gains/(losses) on | -681 | 2 143 | -2 216 | 386 | 20 |
| Endring i pensjonsforpliktelse ført mot egenkapitalen / Change in pension liability recorded | - | - | - | - | 1 005 |
| Bokføring av opsjonsavtale / Recording of option agreement | - | - | - | - | -223 |
| Omregningsdifferanser / Translation differences | 460 | 794 | 1 111 | 1 627 | -14 630 |
| Bokført egenkapital ved periodens slutt / Book equity at the end of the period | 233 925 | 293 615 | 233 925 | 293 615 | 256 640 |
| KONTANTSTRØM OPPSTILLING / CASH FLOW STATEMENT
(Note 1000) | 2010
2Q | 2009
2Q | 2010
YTD | 2009
YTD | 2009
Total |
| --- | --- | --- | --- | --- | --- |
| Netto kontanstrøm fra operasjonelle aktiviteter / Net cash flow from operational activities | -16 428 | 26 034 | -4 667 | 19 689 | 32 656 |
| Netto kontanstrøm fra investeringsaktiviteter / Net cash flow from investment activities | -4 706 | -10 909 | -8 901 | -15 947 | -24 095 |
| Netto kontanstrøm fra finansieringsaktiviteter / Net cash flow from financial activities | 31 998 | -3 673 | 9 843 | -391 | 1 717 |
| Netto kontanstrøm / Net cash flow | 10 864 | 11 451 | -3 725 | 3 351 | 10 277 |
| Betalingsmidler ved periodens begynnelse / Cash and cash equivalents at the beginning of t | 43 571 | 39 783 | 58 161 | 47 883 | 47 883 |
| Betalingsmidler ved periodens slutt / Cash and cash equivalents at the end of the period | 54 436 | 51 235 | 54 436 | 51 235 | 58 161 |
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AKVA GROUP
AKVA group ASA,
Nordlysvn.4
P.O. Box 271,
N-4349 Bryne
Norway
Tel +47 51 77 85 00.
Fax +47 51 77 85 01.
E-mail: [email protected]
www.akvagroup.com
Other AKVA group offices:
| AKVA group, Trondheim | Tel (+47) 73 84 28 00 |
|---|---|
| AKVA group, Brønnøysund | Tel (+47) 75 00 66 00 |
| AKVA group, Sandstad | Tel (+47) 72 44 11 00 |
| AKVA group, Mo i Rana | Tel (+47) 75 13 95 00 |
| AKVA group, Averøy | Tel (+47) 71 51 73 00 |
| AKVA group, Denmark | Tel (+45) 755 13 211 |
| AKVA group Chile, Puerto Montt. | Tel (+56) 65 250 250 |
| AKVA group UK, Inverness. | Tel (+44) 1463 221 444 |
| AKVA group North America, Campbell River, Canada | Tel (+1) 250 286 8802 |
| AKVA group North America, Halifax, Canada | Tel (+1) 902 482 2663 |
| AKVA group SEA, Bangkok, Thailand | Tel (+66) 2 960 3835 / 55 |
| AKVA group Turkey, Bodrum | Tel (+90) 252 374 6434 |
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