AKVA group ASA : 3Q 2013 financial reporting Published: 30 October, 2013
AKVA group had an order inflow of 271 MNOK in Q3 2013. This represents 82% growth compared to Q3 2012 resulting in an order backlog of 299 MNOK at the end of the quarter. The strong order inflow continues into Q4.
Financially this has been a rather slow quarter with revenues of 180 MNOK (202 MNOK) and an EBITDA of 8 MNOK (13 MNOK).
We have had a rather slow financial quarter due to a normal in-between seasons effect in the Nordic market, at the same time as Chile has slowed down. Outlooks are however positive, with strong order inflow in all our product segments and markets except Chile. The high market activity continues into the fourth quarter and is expected to fuel improved financial performance the quarters to come. We continue to focus on managing activity in the Nordic and the Export segments, at the same time as we are controlling and reducing our exposure in the Chilean market”, says CEO of AKVA group ASA Trond Williksen.
In the Cage Based Technology segment there has been high market activity this quarter resulting in good order inflow. However, financially this has been a slow quarter due to the Nordic market being in between seasons with low production and projects activity. At the same time our customers continue to face biological, operational and financial issues in Chile. This is slowing down our activities in this market. Significant adjustments have been implemented to maintain a profitable business in Chile. Both Scotland and Turkey is performing well in Q3 with improved margins and revenues. Export has good deliveries into emerging markets in Q3 with large projects in Russia and Saudi Arabia. Export signed the third contract with Russian Sea in October with a total contract value of 50 MNOK to be delivered in Q1 and Q2 2014.
Software continues to deliver stable revenues and solid margins and they continue to invest in new product modules to be launched throughout 2013. These product modules are strengthening the financial performance of the SW segment further. Our three software companies; AKVA group Software AS (Norway), Wise Ehf (Iceland) and Wise Dynamics Inc (Canada) are all continuing to contribute with positive margins.
In the Land Based Technology segment there have been increased revenues in AKVA group Denmark. Plastsveis AS being included from Q2 2013 also contributes to increased revenues in the land based area. Margins have however been influenced by too low volumes and delay in closing of significant new contract till the end of the quarter. Good order inflow at the end of the quarter is expected to materialize in increased financial performance going forward. The Land Based Technology segment is significantly strengthened through the acquisition of Plastsveis AS in Q1 2013.
High market activity has materialized in a good order inflow in Q3 with an 82% increase year on year. The order inflow in Q3 2013 was 271 MNOK (149 MNOK). The order backlog at the end of Q3 2013 was 299 MNOK (200 MNOK). The strong order inflow continues into Q4.
The balance sheet remains solid with good development in our balance sheet – KPIs; Net Interest Bearing Debt, Working Capital and Equity. Total assets and total equity amounted to 681.0 MNOK and 341.8 MNOK respectively, resulting in an equity ratio of 50.2% vs 51.9% at the end of Q3 2012.
We maintain our positive outlook in the Nordic market for the coming quarters. High salmon prices drive demand for technology and services. Last quarters increase in order backlog and continued high activity in the market into Q4 strengthen this assumption. In Chile the industry and investments are influenced by financial, operational and biological uncertainty. We are monitoring the market closely and adjusting our operation further according to the development. We have positive expectations for the quarters to come in the UK and Canadian market. Performance in Export is expected to be good in the next quarters due to deliveries of large projects, including the newly signed third contract with Russian Sea. A promising prospect mass also underlines our positive outlook in these markets. Land based is expected to have positive development in the next quarters due to increase in order backlog in Q3. Effort to build service and after sales as a key business element in all markets and segments continues to pay off.