AKVA revenue and earnings increase in Q2

Aquaculture industry supplier AKVA group has reported an increase in revenue and a near-doubling of EBITDA for the second quarter of this year compared to the same period in 2018.

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The Norway-based company had revenue of NOK 798 million (£74.3m), up by 27% on Q2 2018, and an EBITDA of NOK 101m (Q2 2018: NOK 52m), and ended the quarter with an order book worth NOK 1.6 billion.  

Shareholders will be paid a half-yearly dividend of NOK 1.00 per share in September.

Click on image to enlarge. Illustration: AKVA.

Cage-based technology

Second-quarter revenue for AKVA’s cage-based technology (CBT) section was NOK 664m (467m) and EBITDA was 85 NOKm (35m). The EBITDA margin increased to 12.8% (7.5%) and EBIT was NOK 46m (17m).

In its Q2 and first-half report, AKVA said there had been improved margins in the Norwegian barge business compared to H2 2018 and Q1 2019, but there was still fierce competition and operational improvement potential.

There was strong improvement in Q2 from Sperre and AKVA Marine services (sale of ROVs and net washers, and net cleaning in sea). Order intake in the Nordic region ended on NOK 379m (219m).

In the Americas, revenue increased to NOK 124m (118m). Order intake in AKVA group Chile increased from NOK 87m to NOK 125m within the cage-based segment.

Sales and supply contract

“Our presence on the east coast of Canada is being built on the sales and supply contract entered into with Grieg NL in Q3 2018 for the delivery of barges,” wrote AKVA. “The contract secures a good platform for further development in the area. In Q2 a letter of intent has been agreed with a local partner to form a joint venture to explore service offerings on land and in sea.”

CBT revenue from Europe and the Middle East (EME) fell from NOK 90m in Q2 2018 to NOK 58m. “The operations in Greece, Spain and Middle East are well positioned for the anticipated growth in the region,” wrote AKVA.

“Turkey had good order intake in Q2, signing orders for NOK 64m in total. The Turkish joint venture Emel Balik is being ramped up to partly serve as capacity back up for our net assembly in Lithuania.”

Land-based technology

Q2 revenues for the land-based technology (LBT) section were NOK 95m (117m). EBITDA ended at NOK 12m (12) and EBIT was NOK 7m (9m). Order intake was NOK 77m compared to NOK 87m in Q2 2018.

AKVA said a major land-based contract awarded by Russian Sea of €11.9m, expected in Q3/Q4, is not yet in the order backlog.

It added that the pipeline of projects continues to be good, and the LBT order book stood at NOK 611m compared to NOK 449m last year.