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AKVA's land-based segment is in the process of delivering more profitable orders won this year. Photo: Sisomar
AKVA's land-based segment is in the process of delivering more profitable orders won this year. Photo: Sisomar

The Inverness-based division of aquaculture industry supplier AKVA, which covers much of Europe and the Middle East, had a strong third quarter, according to the Norwegian company's Q3 report to the Oslo stock exchange.

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Europe & Middle East (EME) saw a positive development in order intake, revenue and operating profit compared to last year, the aquaculture industry supplier said. "Our Turkish operation is stable and we are ramping up activities in Spain, Greece and Iran," added the report.

AKVA Scotland cage ring construction in Alicante, Spain. Photo: AKVA
AKVA Scotland cage ring construction in Alicante, Spain. Photo: AKVA

For the company as a whole, AKVA Group reported strong growth in order intake and revenue. Order intake amounted to NOK 546 million (NOK 417m Q3 2016). Third quarter revenue was NOK 484m (NOK 354m) with an operating profit of NOK 61m (NOK 38m). Third quarter operating profit margin was 12.6 per cent (10.8 per cent). Net profit increased to NOK 26m compared to NOK 11m in Q3 2016.

AKVA Group ended the quarter with an order book worth more than NOK 1.38 billion, an increase of 56 per cent compared to the same period last year. NOK 629m of the total order book at the end of Q3 is related to land-based technology, said the company. "Revenues and EBITDA are up year on year for the land-based segment. Plastsveis and Aquatec Solutions had a good quarter and the cost reduction initiated in AKVA group Denmark in 2016 has given positive effect."

Positive development in Americas

The company said it also experienced increased revenue and margins in the cage-based segment compared to the same period last year, with the Norwegian market as the main driver of growth. The acquisitions of AD Offshore and Sperre, made in Q2 and Q4 2016, is contributing to the growth in revenue and EBITDA.

AKVA said its positive development in the Americas continued with a quarterly revenue of NOK 97m, up from NOK 39m last year. "All our entities in Americas had a stronger quarter than last year in terms of revenue, and order intake ended at a very strong NOK 91m compared to NOK 37m in Q3 last year."

The report concluded: "The market situation is expected to continue to be strong. Our order backlog is high and the land-based segment is in the process of delivering more profitable orders won this year, as well as continuing to see further opportunities in this segment coming.

"We have strengthened our presence and hence our ability to win significant contracts around the Mediterranean area as well as on the east coast of Canada."

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