Norwegian aquaculture services and equipment provider AKVA Group reported big spikes in EBITDA and profits during the third quarter of 2024.
Delivering the group’s Q3 2024 results on 7 November 2024, AKVA CEO Knut Nesse confirmed that the firm received orders totaling NOK 803 million (USD 73.4 million, EUR 68.2 million) in Q3 2024, representing a year-over-year increase of NOK 203 million (USD 18.5 million, EUR 17.2 million). At the end of the period, it had an order backlog of NOK 2.4 billion (USD 219.3 million, EUR 203.8 million).
AKVA’s EBITDA climbed NOK 50 million (USD 4.6 million, EUR 4.2 million) to NOK 128 million (USD 11.7 million, EUR 10.9 million). Its net profit for the period was NOK 88 million (USD 8 million, EUR 7.5 million), versus a loss of NOK 3 million (USD 274,197, EUR 254,826) in Q3 2023.
Nesse added that for the year to date, the group’s revenues stood at more than NOK 2.7 billion (USD 246.8 million, EUR 229.3 million), while its EBIDTA was NOK 305 million (USD 27.9 million, EUR 25.9 million). Those totals compare to revenue of NOK 2.6 billion (USD 237.6 million, EUR 220.8 million) and an EBITDA of NOK 223 million (USD 20.4 million, EUR 18.9 million) in the corresponding period of 2023.
“I am pleased with this positive development in the financial performance following the last few troublesome years,” he said. “Also, we expect a very strong order intake because we have very strong momentum going into Q4.”
Revenues earned by AKVA’s Sea-Based Technology (SBT) segment in Q3 2024 totaled NOK 740 million (USD 67.6 million, EUR 62.8 million), up from NOK 660 million (USD 60.3 million, EUR 56 million) a year previously.
The segment’s EBITDA and EBIT ended at NOK 112 million (USD 10.2 million, EUR 9.5 million) and NOK 75 million (USD 6.9 million, EUR 6.4 million), compared with NOK 79 million (USD 7.2 million, EUR 6.7 million) and NOK 41 million (USD 3.7 million, EUR 3.5 million), while its order intake was up NOK 61 million (USD 5.6 million, EUR 5.2 million) year-on-year to NOK 635 million (USD 58 million, EUR 53.9 million).
SBT’s revenue in the Nordic region ended the quarter at NOK 528 million (USD 48.2 million, EUR 44.8 million), a year-over-year increase of NOK 111 million (USD 10.1 million, EUR 9.4 million). The Americas region, meanwhile, achieved revenues of NOK 156 million (USD 14.2 million, EUR 13.2 million) – a decrease of NOK 15 million (USD 1.4 million, EUR 1.3 million). Europe and the Middle East (EME) saw revenues fall NOK 18 million (USD 1.6 million, EUR 1.5 million) to NOK 55 million (USD 5 million, EUR 4.7 million).
The firm’s Land-Based Technology (LBT) segment saw its revenues for Q3 2024 total NOK 162 million (USD 14.8 million, EUR 13.7 million), up NOK 38 million (USD 3.5 million, EUR 3.2 million) year over year.
Its EBITDA and EBIT ended the period at NOK 5 million (USD 456,483, EUR 424,401) and NOK 3 million (USD 273,975, EUR 254,640), respectively, versus NOK -11 million (USD -1 million, EUR -933,805) and NOK -13 million (USD -1.2 million, EUR -1.1 million) in Q3 2023. Its order intake increased by NOK 134 million (USD 12.2 million, EUR 11.4 million) to NOK 138 million (USD 12.6 million, EUR 11.7 million).
The firm’s Digital (DI) segment saw its Q3 2024 revenues total NOK 34 million (USD 3.1 million, EUR 2.9 million), which was NOK 1 million (USD 91,321, EUR 84,862) more than a year previously. Its EBITDA and EBIT ended at NOK 11 million (USD 1 million, EUR 933,805) and NOK 1 million, while its order intake rose NOK 9 million (USD 821,000, EUR 763,833) to NOK 30 million (USD 2.7 million, EUR 2.5 million).
For the full-year 2024, AKVA is aiming to achieve minimum revenues of NOK 3.6 billion (USD 328.7 million, EUR 305.5 million) across its three business segments, which would represent a growth of 5 percent and an EBIT of approximately NOK 185 million (USD 16.9 million, EUR 15.7 million). For next year, it is guiding 10 percent growth in revenues to NOK 4 billion (USD 365.2 million, EUR 339.5 million) and a minimum 6 percent growth in EBIT.
“What’s behind the very good step up in EBIT from the last few years – from underperforming to more acceptable in 2024 – is our operational excellence program, the cost and right-sizing program that we implemented at the end of last year, and now, the scaling of the digital and land-based business. The sum of this has been an enabler for us to step up our profitability,” Nesse said.
Nesse added that the market for land-based business is still soft, but revenue levels are gradually increasing. He also said that the recent award of a EUR 30 million (USD 32.3 million) contract from Cermaq Chile to deliver a recirculating aquaculture system post-smolt facility would have a positive effect on LBT's revenue level in Q4 and onward.
While the post-smolt market in Norway is currently seeing “relatively slow momentum,” Nesse said he expects to see more impetus going into 2025. At the same time, the expectation is that more contracts will come out of China.
Meanwhile, the DI segment has been further boosted with the Q3 acquisition of 100 percent ownership in Observe Technologies, an AI software that automates and optimizes aquaculture feeding processes. The solution has already been installed at 112 farming sites.
Elsewhere, Nesse noted the broad outlook for the industry and also the consensus among analysts and farmers is that salmon prices are expected to remain strong in the next few years, driven by a relatively low supply increase.
“We think this calls for positive momentum from our customers – the salmon farmers – to invest in sea-based, digital and land-based technology,” he said.
