On the move: In October, AKVA group carried out a share issue that they believe will accelerate the group's strategic agenda within all three business segments. Photo: AKVA group.

Reduced activity level and profitability for AKVA group

Revenue, operating profit and net profit all fell for aquaculture supplier AKVA group in the third quarter of 2021 compared to the same period last year.

Editors
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The group achieved revenues of NOK 738 million (£63.9m), a decrease of 8% compared to the NOK 806m earned in Q3 2020.

EBITDA decreased from NOK 105m in Q3 2020 to NOK 79m, and net profit fell from NOK 36m last year to 14m.

Order intake in the quarter was a healthy NOK 1.9 billion, but NOK 1.3bn related to AquaCon’s US on-land salmon farm project that is subject to financing.

AKVA finished the quarter with an order book worth NOK 3.1bn.

Aquacon wants to build three land-based salmon farms on the east coast of the United States with a cost framework of one billion dollars, and a total production capacity of 45,000 tonnes. The first plant is planned with a capacity of 16,000 tonnes. AKVA group has secured a RAS contract worth NOK 1.3 billion, subject to the facility being financed. Click on image to enlarge. Illustration: Aquacon.

Limited Covid effect

“Profitability in the third quarter is negatively affected by the lower level of activity in the sea-based business segment where revenues were NOK 91m lower in the third quarter of 2021 compared with the third quarter of 2020,” the company stated in a stock exchange release.

Covid-19 restrictions had a negative impact on operations in the first half of 2021.

“The negative implications were mainly related to travel restrictions and the use of foreign labour in ongoing operations. The travel restrictions were lifted at the end of the second quarter of 2021 and the effect of the restrictions was limited in the third quarter,” wrote AKVA.

Sea-based technology (SBT)

SBT revenues for the third quarter of 2021 ended at NOK 603m (694). EBITDA and EBIT for the segment in the third quarter ended at NOK 70m (100) and NOK 29m (60), respectively.

Order intake in the third quarter of 2021 was NOK 563m, compared with NOK 559m in Q3 2020. The order book at the end of Q3 was worth NOK 808m, compared with NOK 828m at the same time last year.

Turnover in the Nordic region in Q3 fell to NOK 338m from NOK 444m in Q3 2020, and in the Americas region, revenue was NOK 140m, down from NOK 187m.

Europe and the Middle East (EME) bucked the trend with revenue of NOK 125m, almost double the NOK 63m made in the third quarter last year.

Land-based technology (LBT)

Revenues for the third quarter were NOK 115m (NOK 96m).

EBITDA and EBIT ended at NOK 7m (0) and NOK 4m (-5m), respectively.

Order intake in the third quarter of 2021 was NOK 1.35bn (of which NOK 1.317bn related to AquaCon) against NOK 72 million in the third quarter of 2020. The order book was worth NOK 2.184bn against NOK 747m last year.

Outlook

At the end of the third quarter of 2021, the group announced a partnership with a new strategic investor.

“Israel Corp. is a reputable public investment company that owns and invests in high quality companies with established management and go-to markets,” stated AKVA.

“Israel Corp. completed the investment of NOK 636.9m in October 2021, consisting of a private placement of NOK 321.7m and the purchase of existing shares of NOK 315.2m. The private placement will accelerate the group’s strategic agenda within all three business segments.”

AKVA group and Israel Corp. will also establish an investment platform for investments in land-based projects worldwide that will facilitate the organic growth ambition within the land-based business segment.

The group stated that it is fully financed to implement the organic growth strategy.

Digital products are an important part of the AKVA group’s total product offering, and the company will continue to invest and develop attractive solutions, both in offshore and onshore technology.

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