Aqualis ASA: Q2 2015 financial results

26 August 2015 - Marine and offshore engineering consultancy group Aqualis ASA (Aqualis) reported revenues of USD 11.4 million in the second quarter of 2015, a 65 % increase from the corresponding quarter in 2014. The group continues its rapid expansion plan with two new office openings in the quarter. Three further office openings will follow during the third quarter.

"Despite the general downturn in the offshore oil and gas market, we have maintained a record high revenue level. This demonstrates that we are succeeding in shifting our focus to offshore operations of existing assets - a market that is less volatile than the new-build segment. Additionally, the offshore wind market remains healthy for us," says David Wells, CEO of Aqualis ASA.

Operating revenues were USD 11.4 million in the second quarter 2015 (Q2 2014: USD 6.9 million). Earnings before interest and tax (EBIT) was USD 0.0 million (USD 0.3 million). Profit after tax was negative at USD -0.4 million (USD -0.3 million), including unrealised foreign exchange loss of USD 0.4 million. Cash flow was negative at USD -0.3 million.

Aqualis' order backlog from fixed contracts stood at USD 15.1 million at the end of June.

Aqualis continues to follow its rapid international expansion plan. Two new offices were opened during the second quarter - in Aberdeen, UK, and Doha, Qatar. The company's aggressive expansion continues in the third quarter, with forthcoming office openings in South Korea, Germany and Malaysia. Following this, Aqualis will have 19 offices in 14 countries worldwide.

"Our strategy is very clear; we will continue to grow the business, both in terms of new offices and personnel. From a market perspective, we will maintain our strategy of supporting clients on day-to-day offshore operations, with focus on operations and niche engineering including upgrades, modification and conversion of existing assets," says David Wells.

He adds: "For our shareholders it is also worth noticing that most of the costs associated with new offices and growth of workforce are expensed and not yet capitalized. Additionally, all critical company infrastructure and shared functions are now in place".

In addition to continued organic growth and increased market share in key segments, Aqualis continues to evaluate a number of acquisitions that could complement its business geographically and/or add new service lines to the company's customers. A key decision criteria is that the acquisitions will add to shareholder value.

Please find enclosed the interim report and presentation for the second quarter 2015 or see www.newsweb.no.  A webcast with CEO David Wells and CFO Christian Opsahl presenting the Q2 financial results is available at the following URL: http://webtv.hegnar.no/presentation.php?webcastId=22971706      

ENDS

For further information, please contact:

Investors
Christian Opsahl, CFO, 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 16 offices in 11 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.