Bryne, Norway-based AKVA Group, a maker and supplier of aquaculture-related technology, reported higher order intake in the fourth quarter of 2018 but lower net profit for the year.
The company, which reported its quarterly and annual results on 15 February, recorded NOK 997 million (USD 115 million, EUR 102 million) in new orders in Q4 2018, the company’s best-ever quarter for new orders. It also announced a major land-based contract signed with Ænes Inkubator AS, a new smolt-farming project in Norway, that AKVA valued at EUR 15.6 million (USD 1.8 million, EUR 1.6 million). The company had a total order intake of NOK 2.56 billion in 2018, up from NOK 2.47 billion (USD 285 million, EUR 253 million) a year prior, and total revenue of NOK 2.58 billion (USD 298 million, EUR 264 million), up 24 percent from 2017.
Its acquisition of Egersund Net, an equipment producer for the aquaculture industry, resulted in higher orders but also a short-term hit on the cost of the transaction. AKVA announced paid NOK 750 million (USD 92.9 million, EUR 78 million) for the acquisition in May 2018. That transaction cost dragged down the company’s year-over-year profit from NOK 100 million (USD 11.5 million, EUR 10.2 million) in 2017 to NOK 90 million (USD 10.4, EUR 9.2 million) in 2018. However, AKVA said Egersund Net had contributed NOK 25 million (USD 2.9 million, EUR 2.6 million) of the company’s NOK 57 million (USD 6.6 million, EUR 5.8 million) in earnings before interest, tax, depreciation and amortization in Q4 2018.
The company reported a stronger market in Chile and it took over a larger share of the market in North America with a contract with Grieg NL Seafarms. AKVA’s revenues from its Americas market reached NOK 177 million (USD 20.4 million, EUR 18.1 million), up from NOK 127 million (USD 14.7 million, EUR 13 million) in Q4 2017.
“In general, the market activity is good in most markets and opportunities exists on a broad basis to further strengthen AKVA’s position,” the company said.
But it also said it struggled with an increasing backlog of projects due to “ongoing manufacturing challenges for barges and pipes,” which it said hurt its margins in 2018. As a strategic move, it said it is putting an increased focus into the development and sale of software, control systems, and ditigalization in 2019.
The company also gave a progress updated on its Atlantis Subsea Farming AS project, which it is developing jointly with Sinkaberg-Hansen AS. The project to create a submersible fish-farming pen for salmon on an industrial scale, was granted one license by the Norwegian Directorate of Fisheries. The project is now in a technology testing phase, part of what the company said is “required large-scale testing of [its] technological and operational solutions.”
Photo courtesy of AKVA Group
