Strong growth in the Nordic for Akva group

In the Cage Based Technology segment AKVA experienced strong growth in the Nordic segment in Q1. There was a decline in revenues in Chile in Q1 as expected. The decline is explained by low prices on salmon, trout and coho as well as financial and biological uncertainty in Chile. Canada and Scotland had a slow start of the year, impacted by local fish health issues. Delivery and revenue recognition of large Export projects is shifted into the second quarter, reports the company in a press release.

Software continues to deliver stable revenues and solid margins and we continue to invest in new product modules to be launched throughout 2013. It is expected that new product modules will strengthen the financial performance of the SW segment throughout the year.

The Land Based Technology experienced significant improvement in Q1 2013 compared to previous years, caused by improved margins and reduced cost base. Recirculation technology is on its way of becoming a mature technology. Growing prospect mass gives signals of increased interest in the market. The Land Based Technology segment is positioned for future profitable growth and strengthened through acquisition of 70% of Plastsveis AS in March 2013.

There has been a very good inflow of new orders in the quarter especially in the Nordic and Export regions. Compared to first quarter previous years the activity level in this market segment has increased significantly. Order backlog at the end of Q1 2013 was 327 MNOK (275 MNOK). The order inflow in Q1 2013 was 242 MNOK (235 MNOK).

Total assets and total equity amounted to 762.2 MNOK (736.5 MNOK) and 337.9 MNOK (341.5 MNOK) respectively, resulting in an equity ratio of 44.3% (46.4%).

We maintain our positive outlook in the Nordic market for the coming quarters. Significant growth in salmon prices into 2013 drives demand for technology and services. We see some positive signals in Chile after significant decline in volumes of sales and deliveries in Q1 compared to 2012. Industry and investments in Chile are influenced by financial and biological uncertainty, but strong increase in salmon prices is easing the situation. We are monitoring the market closely and adjusting according to the development. We have moderate expectations in 2013 in UK and Canada due to fish health issues. Performance in Export is expected to be good in the next quarters due to deliveries of large projects.