Brighter outlook for AKVA group

Aquaculture technology service company AKVA has reported a strong increase in revenues and operating profits for last year.

AKVA recorded an EBIT of NOK 68m (£5m) against an operating loss of NOK 56m (£4m) in 2022.

Revenues increased by 2% to NOK 3,432m (£254m) and it also has a strong order intake last year of NOK 4,328m (£320m) last year.

CEO Knut Nesse said the group entered 2023 with an excited pipeline of new projects, expectations of growth in activity level and improved profitability. However, the activity level in 2023 was at the same level as in 2022.

He reports: “Overall, the order intake was sound with the award of the post smolt contract for Cermaq Norway (EUR 60m) and the RAS contract for Nordic Aqua Partners (EUR 40m) as the largest contracts.

“But the introduction of the resource tax had a negative impact on the activity level both for Land Based and parts of our Sea Based business as our customers postponed their investment plans.

“The market for post smolt in Norway is still challenging and uncertain, but we expect the market to normalize during the second half of 2024.

“Due to [a] change in market conditions AKVA announced a new cost saving programme in Q3 2023 to adapt the organization to the current and expected activity level.”

He said the programme was completed in the final quarter of 2023, achieving an estimated NOK 45m (£3.3m) in annual cost savings. The profitability improved in 2023 compared to 2022 but was still below expectations.

“Profitability in Sea Based was acceptable supported by a healthy product mix, while the profitability in Land Based was low due to high cost base compared to current activity level, and due to low profitability on parts of the project portfolio,” he added.

AKVA CEO Knut Nesse