Aqualis ASA: Q3 2015 financial results

27 October 2015 - Offshore and marine engineering consultancy group Aqualis ASA (Aqualis) reported revenues of USD 9.5 million in the third quarter 2015. EBIT was negative USD 1.4 million. The company continued its rapid expansion through opening three new offices in Q3 as well as announcing plans to move into the solar energy sector.

"As guided in our Q2 report, we experienced a slight decrease in revenues in the third quarter, partly because of the effects of monsoon season offshore India. However, the underlying performance of the group remains solid, despite some weak oil and gas segments. In sum, we are operating on a solid platform while continuing to expand both our international presence and service offering," says David Wells, CEO of Aqualis ASA.

Operating revenues were USD 9.5 million in the third quarter 2015 (Q3 2014: USD 11.3 million). Earnings before interest and tax (EBIT) was negative USD 1.4 million (-1 million). Profit after tax was negative USD 1.5 million (-1.2 million). Cash flow in the quarter was negative USD 1.8 million.

Aqualis' order backlog from fixed contracts stood at USD 15.1 million at the end of September. This is the same level as the end of the previous quarter.

"Our strategic shift from new-build to the operations segment affects the size of our backlog. However, it is worth remembering that day-to-day service operations are managed by call-out contracts that do not get included in our backlog figures. Our pipeline of work from these types of contract continues to look solid," says David Wells.

Aqualis made two major strategic expansion moves during the third quarter. Firstly, the company continued its fast-paced geographical expansion and opened new offices in Germany, Malaysia and South Korea.

Secondly, in September Aqualis signed a MoU to acquire a 49.9 percent stake in Adler Solar - a Germany-based company specialising in the provision of engineering consultancy and testing services for all lifecycle phases of PV plants and PV modules. The transaction is expected to be closed in the fourth quarter.

Through the acquisition of Adler Solar, Aqualis will achieve its original strategy of operating as "energy consultants" across three main sectors: oil and gas (Aqualis Offshore), offshore renewables (Offshore Wind Consultants) and solar energy (Adler Solar).

"A key priority going forward is the consolidation of our recent fast-paced footprint growth. There are numerous opportunities within these countries which we aim to capitalise on. We will also continue to monitor possible structural add-on opportunities to enhance value for Aqualis' shareholders," says David Wells.

Please find enclosed the interim report and presentation for the third quarter 2015 or see www.newsweb.no.  

At 09:00 CET a live webcast with CEO David Wells and CFO Christian Opsahl presenting the Q3 financial results will be available from the following URL: http://webtv.hegnar.no/presentation.php?webcastId=25481094

ENDS

For further information, please contact:

Investors
Christian Opsahl, CFO, Aqualis ASA, tel: +47 901 101 53, email: christian.opsahl@aqualis.no.

Media
Endre Johansen, Corporate Communications AS, tel: +47 41 61 06 05, email: endre.johansen@corpcom.no.

About Aqualis ASA
Aqualis ASA (OSE: Aqua) is a public company that, through its subsidiaries, offers marine and engineering consultancy services to the offshore oil, gas and renewable sectors globally. The group employs 230 experienced consultants across 19 offices in 14 countries worldwide. Aqualis ASA operates under two different brands: Aqualis Offshore and Offshore Wind Consultants. Aqualis Offshore is a specialized offshore marine and engineering consultancy firm, focusing on the shallow and deep-water offshore segments of the oil and gas industry. Offshore Wind Consultants is a globally focused consultancy providing independent services to the offshore renewables industry.