Steady performance in slow market
"AKVA group achieved a steady operational and financial performance in a rather slow market in the second quarter of 2012. Overall, taken rather slow market conditions in to consideration, we are satisfied that we continue to deliver positive margins and results. Going forward we see positive signals in the market, especially in the Nordic region", says CEO of AKVA group ASA Trond Williksen.
Nordic and Chile were main drivers of group revenues in the second quarter of 2012. Nordic increased its revenues compared to first quarter of 2012. We see revenues in Chile stabilizing on a high level in the quarter. Exports pose an exciting opportunity despite relative low activity in emerging markets in the second quarter of 2012. Software continues to deliver solid margins.
Focus on balance sheet continues to show results and all key indicators have improved in the second quarter of 2012. AKVA group have increased its credit facility in Sandnes Sparebank by 25 MNOK to a total limit of 90 MNOK. This further improves our financial flexibility and ability to grow in the time to come.
Total assets and total equity amounted to 738.9 MNOK and 346.9 MNOK respectively, resulting in an equity ratio of 46.9% versus 44.9% at the beginning of the year.
Order backlog at the end of the second quarter was 253 MNOK (328 MNOK). The order backlog has been kept fairly stable since end of the third quarter of 2011 despite slower market.
There is an increased positive outlook in the Nordic market due to optimistic sentiment created by medium to long term prospects for the salmon industry. Chile is expected to stabilize on rather high business volumes for the rest of the year, but with more uncertainty for the quarters to come.
We expect improvements in our performance in UK and Canada in the rest of the year.
AKVA group continues to be hands on in second half of 2012 adjusting operations according to market development, focusing on long term performance, margins and customer relations. There will be continued focus on building service and after sales as a key business element. The financial situation is now comfortable. However, we will continue to have strong focus on working capital and cash management.
