AKVA reveals solid underlying operational performance in Q2 – Fishupdate.com

AKVA reveals solid underlying operational performance in Q2 Published:  16 August, 2013

AKVA group, a technology and service partner to the aquaculture industry, has announced that it achieved revenues of 270 MNOK (211 MNOK) in the second quarter of 2013 with an EBITDA of 20 MNOK (10 MNOK).

 “There has been strong underlying operational performance in Nordic, Scottish and Canadian market with improved top line and earnings in Q2. At the same time we have managed challenging times in the Chilean market with reduced activity, but positive earnings,” said CEO of AKVA group ASA Trond Williksen. 

“In the export segment large deliveries to emerging markets have been completed successfully. Outlooks, especially in the Nordic segment are strong, at the same time as opportunities in the Exports segment is growing,” he added.

In the cage-based technology segment there had been strong underlying operational performance in the Nordic segment with improved top line and earnings.

Chile had managed challenging times with reduced activity and had managed to take down the cost base significantly and in due time, which had materialized in positive margins in Q2 and year to date.

Both Canada and Scotland were performing well, said Williksen, with improved margins and revenues compared to Q1. Export had strong deliveries into emerging markets in Q2 with large projects in Russia and Saudi Arabia.

 Software continued to deliver stable revenues and solid margins and they continued to invest in new product modules to be launched throughout 2013, said AKVA’s report. It was expected that new product modules would strengthen the financial performance of the SW segment further. 

The land-based technology segment had experienced increased revenues in AKVA group Denmark in Q2. Plastsveis AS being included from Q2 2013 also contributed to increased revenues in the quarter. Margins had been influenced by a weak midseason for land based technologies.

Growing prospect mass gave signals of increased interest in the market. The Land Based Technology segment was positioned for future profitable growth and strengthened through the acquisition of 70% of Plastsveis AS in March 2013. 

The order backlog at the end of Q2 2013 was 208 MNOK (253 MNOK). The order inflow in Q2 2013 was 151 MNOK (190 MNOK).

The balance sheet was continuing to be improved, said AKVA, compared to previous quarters with positive development in its balance sheet – KPIs; Net Interest Bearing Debt, Working Capital and Equity.

Total assets and total equity amounted to 701.8 MNOK and 341.6 MNOK respectively, resulting in an equity ratio of 48.7% vs 46.9% at the end of Q2 2012.

 “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 and we are currently experiencing strong growth in prospect mass,” said the company’s Q2 report.

“We see some positive signals in Chile after significant decline in volumes of sales and deliveries in the first half of 2013 compared to 2012. Industry and investments are influenced by financial and biological uncertainty, but strong increase in salmon prices is easing the situation. We are monitoring the Chilean market closely and adjusting according to the development. We have increased our expectations for the second half of 2013 for the UK and Canadian market. Performance in Export is expected to be good in the next quarters due to deliveries of large projects and a promising prospect mass.

“Our effort to build service and after sales as a key business element in all markets and segments will continue to pay off.

 “Our strong focus on working capital and cash management continues.”