Annual Report 2023
- Pioneering a better future
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AKVA group in brief
AKVA group is the leading technology and service partner to the aquaculture industry worldwide. The company has 1 425 employees, offices in 11 countries and a total turnover of NOK 3.4 billion in 2023.
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 sea based farming and land based aquaculture. AKVA group is recognized as a pioneer and technology leader through more than 40 years.
Highlights 2023
- EBIT of 68 MNOK in 2023 is up from MNOK -56 in 2022*
- Strong order intake of MNOK 4,328 in 2023, increase from MNOK 3,414 in 2022
- Revenue in 2023 of MNOK 3,432 - a 2% increase compared to revenue in 2022
- Net profit in 2023 of MNOK -19 - a increase from MNOK -131 in net profit in 2022
- Order backlog of MNOK 2,396, 42% increase compared to end of Q4 2022
- Commercial breakthrough for deep sea farming concepts
- Award of new RAS contract with NOAP for next 4,000 tonnes (phase 2) and new post smolt contract with Cermaq Norway. Contract values estimated at MEUR 40 and MEUR 60, respectively
- Acquisition of 51% of the shares in Submerged AS was completed in Q3 with the option to increase the ownership to 100% in 2028 based on certain conditions
*EBIT in 2022 was impacted by restructuring costs of MNOK 98
CEO's report
Group management | |
Board of directors' report | |
Board of directors | Financial key figures |
Consolidated financial statements and notes - AKVA group
Financial statements and notes - AKVA group ASA
Auditor's report
Responsibility statement
Alternative performance measures - non ifrs financial measures
Environmental, social & governance (ESG)
EU Taxonomy
Corporate governance in AKVA group ASA
GRI context index
(in NOK 1 000) | 2023 | 2022 | 2021 | 2020 | 2019 | |
PROFITABILITY | ||||||
Revenues | 3 432 262 | 3 376 320 | 3 121 737 | 3 176 852 | 3 076 740 | |
EBITDA | 263 407 | 158 270 | 252 467 | 338 091 | 271 910 | |
EBIT | 67 603 | -56 493 | 69 805 | 147 163 | 62 316 | |
Profit before tax | -29 309 | -151 864 | 2 549 | 121 475 | 13 476 | |
Net profit | -18 527 | -131 075 | 11 458 | 90 698 | 16 604 | |
NET PROFIT (LOSS) ATTRIBUTABLE TO: | ||||||
Non-Controlling interests | -692 | 134 | -18 | 25 | 1 971 | |
Equity holders of AKVA group ASA | -17 835 | -131 209 | 11 476 | 90 673 | 14 633 | |
Cash flow from operations | 193 397 | 218 163 | 60 751 | 346 592 | 210 768 | |
EBITDA margin | 7,7 % | 4,7 % | 8,1 % | 10,6 % | 8,8 % | |
EBIT margin | 2,0 % | -1,7 % | 2,2 % | 4,6 % | 2,0 % | |
Return on capital employed | 2,1 % | -2,0 % | 2,6 % | 6,9 % | 2,9 % | |
Return on equity | -1,6 % | -11,5 % | 0,9 % | 8,7 % | 1,7 % | |
FINANCIAL POSITION | ||||||
Non-current assets | 2 214 341 | 1 983 547 | 1 930 149 | 1 951 784 | 1 883 496 | |
Current assets | 1 469 591 | 1 596 899 | 1 515 397 | 1 274 910 | 1 150 138 | |
Total assets | 3 683 933 | 3 580 446 | 3 445 546 | 3 226 694 | 3 033 634 | |
Equity attributable to equity holders of AKVA group ASA | 1 142 451 | 1 144 000 | 1 296 885 | 1 041 538 | 986 340 | |
Non-controlling interests | 10 225 | 336 | 140 | 158 | 4 165 | |
Total equity | 1 152 676 | 1 144 337 | 1 297 025 | 1 041 696 | 990 505 | |
Long-term debt | 1 358 554 | 1 160 700 | 918 981 | 1 301 792 | 1 163 545 | |
Short-term debt | 1 172 701 | 1 275 410 | 1 229 541 | 883 207 | 879 584 | |
Total equity and liabilities | 3 683 933 | 3 580 446 | 3 445 546 | 3 226 694 | 3 033 634 | |
Gross interest-bearing debt | 1 395 843 | 1 265 540 | 1 232 874 | 1 332 100 | 1 217 447 | |
Cash and cash equivalents | 219 394 | 277 988 | 303 442 | 224 884 | 160 999 | |
Net interest-bearing debt | 1 176 449 | 987 552 | 929 432 | 1 107 215 | 1 056 448 | |
Working capital | 205 556 | 203 221 | 361 478 | 261 484 | 286 691 | |
Equity ratio | 31,3 % | 32,0 % | 37,6 % | 32,3 % | 32,7 % | |
Debt to equity ratio | 121,1 % | 110,6 % | 97,9 % | 127,9 % | 122,9 % | |
121,1 % | 110,6 % | 97,9 % | 127,9 % | 122,9 % | ||
(in NOK) | 2023 | 2022 | 2021 | 2020 | 2019 | |
SHARE DATA | ||||||
Earnings per share | -0,49 | -3,61 | 0,34 | 2,74 | 0,44 | |
Diluted earnings per share | -0,49 | -3,61 | 0,34 | 2,74 | 0,44 | |
Cash flow per share | -1,60 | -0,78 | 6,03 | 1,92 | 0,12 | |
Dividend per share | - | 1,00 | 1,00 | 1,00 | 1,75 | |
Shareholders´equity per share at year-end | 31,16 | 31,20 | 35,37 | 31,25 | 29,59 | |
Share price at year-end | 58,00 | 57,00 | 88,20 | 105,00 | 74,00 | |
Market capitalization at year-end | 2 126 729 | 2 090 061 | 3 234 094 | 3 500 102 | 2 466 738 | |
Number of shares outstanding at year-end | 36 667 733 | 36 667 733 | 36 667 733 | 33 334 303 | 33 334 303 | |
Weighted average number of ordinary shares | 36 415 864 | 36 369 400 | 33 813 103 | 33 116 506 | 33 204 736 | 5 |
CEO's report
Group management
Board of directors' report
Board of directors
Consolidated financial statements and notes - AKVA group
Financial statements and notes - AKVA group ASA
Auditor's report
Responsibility statement
Alternative performance measures - non ifrs financial measures
Environmental, social & governance (ESG)
EU Taxonomy
Corporate governance in AKVA group ASA
GRI context index
Share Price Development
120 | ||
110 | ||
100 | ||
90 | ||
80 | ||
70 | ||
60 | ||
50 | ||
40 | ||
30 | ||
20 | ||
10 | ||
0 | - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | |
01-2002-2003-2004-2005-2006-2007-20 | 08-2009-2010-2011-2012-2001-2102-2103-2104-2105-2106-2107-2108-2109-2110-2111-2112-2101-2202-2203-2204-2205-2206-2207-2208-2209-2210-2211-2212-2201-2302-2303-2304-2305-2306-2307-2308-2309-2310-2311-2312-23 | |
Revenue | Geographic segents* |
Land Based 18 % | Australas 7 % | |
Digital 4 % | Americas 19 % | |
Nordic 60 % |
Sea Based 78 %
Europe &
Middle East 14 %
*Based on customer location
6
CEO's report
Group management
Board of directors' report
Board of directors
Consolidated financial statements and notes - AKVA group
Financial statements and notes - AKVA group ASA
Auditor's report
Responsibility statement
Alternative performance measures - non ifrs financial measures
Environmental, social & governance (ESG)
EU Taxonomy
Corporate governance in AKVA group ASA
GRI context index
Revenues | EBITDA | ||||||||
3 500 | 275 | ||||||||
250 | |||||||||
225 | |||||||||
3 000 | 200 | ||||||||
175 | |||||||||
150 | |||||||||
2 500 | 125 | ||||||||
100 | |||||||||
2020 | 2021 | 2022 | 2023 | 2020 | 2021 | 2022 | 2023 |
Earnings per share | OPEX based revenue | ||||||||
3,5 | 1 000 | ||||||||
3,0 | 900 | ||||||||
2,5 | |||||||||
800 | |||||||||
2,0 | |||||||||
1,5 | 700 | ||||||||
1,0 | |||||||||
600 | |||||||||
0,5 | |||||||||
0 | 500 | ||||||||
- 0,5 | |||||||||
400 | |||||||||
- 1,0 | |||||||||
- 1,5 | 300 | ||||||||
- 2,0 | |||||||||
200 | |||||||||
- 2,5 | |||||||||
- 3,0 | 100 | ||||||||
- 3,5 | |||||||||
0 | |||||||||
- 4,0 | |||||||||
2020 | 2021 | 2022 | 2023 | 2020 | 2021 | 2022 | 2023 |
7
- CEO's report
- Group Management
- Board of Directors' report
- Board of Directors
CEO's report
Group management
Board of directors' report
Board of directors
Consolidated financial statements and notes - AKVA group
Financial statements and notes - AKVA group ASA
Auditor's report
Responsibility statement
Alternative performance measures - non ifrs financial measures
Environmental, social & governance (ESG)
EU Taxonomy
Corporate governance in AKVA group ASA
GRI context index
CEO's report
DEAR STAKEHOLDERS AND SHAREHOLDERS
AKVA group entered 2023 with an excited pipeline of new projects, expectations of growth in activity level and improved profitability.
However, the activity level in 2023 was at the same level as in 2022. Overall, the order intake was sound with the award of the post smolt contract for Cermaq Nor- way (MEUR 60) and the RAS contract for Nordic Aqua Partners (MEUR 40) as the largest contracts. But the introduction of the resource tax had a negative impact on the activity level both for Land Based and parts of our Sea Based business as our customers postponed their investment plans. The market for post smolt in Norway is still challenging and uncertain, but we expect the market to normalize during the second half of 2024.
Due to change in market conditions AKVA announced a new cost saving program in Q3 2023 to adapt the organization to the current and expected activity level. The cost saving program was completed in Q4 2023 with estimated MNOK 45 in annual cost savings.
The profitability improved in 2023 compared to 2022 but is still below expectations. The profitability in Sea Based was acceptable supported by a healthy product mix, while the profitability in Land Based was low due to high cost base compared to current activity level, and due to low profitability on parts of the project portfolio.
- Revenue increased by 2% to MNOK 3,431 in 2023.
- EBIT increased from negative MNOK 56 in 2022 to MNOK 68 in 2023.
- Net profit negative MNOK 19, up from negative MNOK 131 in 2022.
MARKET
AKVA group is the global market leader of solutions and services to the fish farming industry, whereof approx. 90% of our deliveries are to the salmon industry. Salmon prices have over the past years been high due to high demand and constraints on supply. AKVA believes salmon prices to remain strong the coming years.
The resource tax had a negative impact on the market activity in Norway in 2023. We expect that the market for post smolt in Norway to gradually normalize during 2024.
During 2023 AKVA group had a commercial breakthrough of the deep farming concept Nautilus with awards of several contracts. The Nautilus solution has a documented positive impact on fish health and reduced sea lice pressure. We expect the Nautilus solution and other deep farming concepts to be highly relevant for the market in the years to come.
Market intelligence implies a significant demand growth for salmon by 2030 driven by increased focus on environment and health, and distribution of salmon to new markets. This increase in demand will be partly covered by technological advances for improved utilization of existing licenses but there is a common understanding in the market that the increased demand will not be covered through conventional farming alone. A significant part of the demand will come from unconventional supply sources and AKVA group believes that full grow out facilities on land will play an important role in the future.
Our focus is to make sure that AKVA group strengthens the position as an attractive global supplier so that the salmon industry can meet the expected demand growth worldwide.
INNOVATION AND DIGITALIZATION
To sharpen the innovation focus, we have divided our Centre of Excellence into three separate innovations agendas for Sea Based, Land Based and Digital. We have increased the innovation spending significantly the past years to support our organic growth ambitions and to strengthen our position as the global market leader.
Within Sea Based we have made good progress in 2023, especially within our deep farming concepts and new products were commercialized during 2023. We believe the deep farming concepts to be important for improving utilization of existing farming licenses and reduce the production costs to the farmers, and we will continue to improve our solutions.
The focus in Land Based is to further improve and document our technology. Our RAS concept is validated and well perceived in the marketplace. An important milestone in 2024 is to complete the first phase of the full grow out project for Nordic Aqua Partners in China.
We have achieved great progress in further developing and improving our Digital products: AKVAconnect, AKVA Observe and Fishtalk. We achieved important milestones in 2023 with regards to new sales and continued with a strong revenue growth of approx. 30%. In Q3 2023 we also acquired a controlling interest in Submerged AS which has developed a camera solution which can be used
for sea lice counting and biomass estimation. We will continue to invest in our digital capabilities to support the future growth of the Digital business segment.
SUSTAINABILITY
In 2023 we developed the world's first recycled pen based on discarded pens from fish farming. We established an innovation project with the aim of developing circular
9
CEO's report
Group management
Board of directors' report
Board of directors
Consolidated financial statements and notes - AKVA group
Financial statements and notes - AKVA group ASA
Auditor's report
Responsibility statement
Alternative performance measures - non ifrs financial measures
Environmental, social & governance (ESG)
EU Taxonomy
Corporate governance in AKVA group ASA
GRI context index
farming nets using recycled nylon and ropes from discarded nets from fish farmers.
In 2023 AKVA group succeeded in commercializing the deep farming solution Nautilus for lower lice pressure and better fish health. We have further developed our waterborne feeding systems with effective energy systems for new and existing feed barges. An important priority for AKVA group has also been to strengthen our digital agenda for more sustainable solutions and developing the first phase of a land based full grow-out facility in China based on RAS and our Zero Water Concept.
OPERATIONAL EXCELLENCE
We have a strong focus to improve the performance culture in AKVA group. During 2023 several initiatives and training sessions have been executed to further develop the commercial awareness in the entire AKVA organiza- tion.
An important part to improve our project execution capabilities and increase customer satisfaction is to implement a new global ERP system supporting standardization of business processes and increase visibility. We have entered a partnership with a global and strong ERP supplier and will go live with the ERP system in some of our legal entities during first half of 2024.
supply constraints. The high demand for salmon will push for new technological advances to improve utilization of existing licenses in the sea but will also require scale-up of new farming technologies.
During Q4 2023 we revised our medium-term financial targets, and we are aiming a revenue of minimum BNOK 3,6 in 2024 and an EBIT margin of 4-5%.
My role is to make sure we make the right priorities and execute our innovation agendas to the best for AKVA, our customers, shareholders, and stakeholders.
An important part of everything we do is ensuring our values - Customer focus, Aquaculture knowledge, Reliability, Enthusiasm - remains crucial in the further development of AKVA group.
THE FUTURE
AKVA group is well positioned for future profitable growth. | Klepp, Norway |
We have an acceptable order backlog and a solid pipeline | |
of potential new projects which forms a good foundation to | 14 March 2024 |
execute our organic growth strategy. | Knut Nesse |
Salmon prices are expected to remain strong driven by | Chief Executive Officer |
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Disclaimer
AKVA Group ASA published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 07:33:01 UTC.