Klepp, Norway-based AKVA Group received orders in the third quarter of 2021 worth almost three times as much as the orders it received in Q3 2020, but saw its revenue and profits slip.
AKVA received orders totaling NOK 1.9 billion (USD 221.1 million, EUR 191.7 million) in the third quarter of this year, almost trebling the NOK 647 million (USD 73.3 million, EUR 65.3 million) it achieved in the corresponding period of 2020, with NOK 1.35 billion (USD 157.2 million, EUR 136.3 million) worth of orders placed with its Land-Based Technology (LBT) segment. In Q3 2020, it had NOK 72 million (USD 8.4 million, EUR 7.3 million) worth of orders placed with LBT.
According to AKVA’s Q3 report, the group had an order backlog of NOK 3.1 billion (USD 360.9 million, EUR 312.9 million) at the end of September, with a significant part of the order intake in LBT related to the newly awarded full grow-out recirculating aquaculture system (RAS) contract with AquaCon AS – the largest contract in the group’s history.
The quarter ended with revenues of NOK 738 million (USD 85.9 million, EUR 74.5 million), down 8 percent from NOK 806 million (USD 93.8 million, EUR 81.4 million) in Q3 2020. In terms of species, salmon farming accounted for the majority of the revenues generated.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by NOK 26 million (USD 3 million, EUR 2.6 million) to NOK 79 million (USD 9.2 million, EUR 8 million), while net profit fell from NOK 36 million (USD 4.2 million, EUR 3.6 million) to NOK 14 million (USD 1.6 million, EUR 1.4 million).
AKVA’s Sea-Based Technology (SBT) division reported Q3 revenues of NOK 603 million (USD 70.2 million, EUR 60.9 million), down from NOK 694 million (USD 80.8 million, EUR 70.1 million) a year previously. The segment’s EBITDA was NOK 70 million (USD 8.2 million, EUR 7.1 million), compared with NOK 100 million (USD 11.6 million, EUR 10.1 million), while its order intake was up NOK 4 million (USD 466,000, EUR 404,000) year-on-year to NOK 563 million (USD 65.5 million, EUR 56.8 million).
SBT’s revenue in the Nordic region ended at NOK 338 million (USD 39.3 million, EUR 34.1 million), a year-on-year increase of NOK 106 million (USD 12.3 million, EUR 10.7 million). The Americas region, meanwhile, achieved revenues of NOK 140 million (USD 16.3 million, EUR 14.1 million), a decrease of NOK 47 million (USD 5.5 million, EUR 4.7 million). AKVA's Europe and Middle East division nearly doubled its revenue to NOK 125 million (USD 14.6 million, EUR 12.6 million).
LBT’s revenues for the third-quarter totaled NOK 115 million (USD 13.4 million, EUR 11.6 million), an increase of NOK 19 million (USD 2.2 million, EUR 1.9 million). EBITDA for the period was NOK 7 million (USD 814,882, EUR 706,555).
Revenues for AKVA’s Digital (DI) segment amounted to NOK 20 million (USD 2.3 million, EUR 2 million), some NOK 4 million (USD 465,690, EUR 403,786) more than in Q3 2020. Its EBITDA was NOK 3 million (USD 349,000, EUR 303,000).
At the end of the third-quarter, AKVA entered into a partnership with new strategic investor, Israel Corp., which invested a total NOK 636.9 million (USD 74.2 million, EUR 64.3 million) in both a private-share placement and the purchase of existing shares.
AKVA’s Q3 report confirmed the private placement will accelerate its strategic agenda within all three business segments, and that AKVA and Israel Corp. will also establish an investment platform for investments in land-based projects worldwide.
Photo courtesy of AKVA Group
