AKVA order book strong despite Land Based disappointment

AKVA Group, one of the world’s leading aquaculture technology and service businesses, today announced a 10% reduction in first quarter revenues, with slow progress in its land based sector.

The EBITDA was up, however, and the company is reporting a strong order book.

AKVA said there was acceptable activity level in sea based farming with improved profitability, but activity in land based operations was still slow. The group did not expect to sign any significant new contracts in this area during the first half of this year.

The group, which has offices in 11 countries, including Inverness, Scotland, delivered 2024 Q1 revenues of NOK 784m (£56.8m) against NOK 874m (£63m) a year ago.

EBITDA (earnings before interest, depreciation and amortisation) increased from NOK 59m (£4.2m) last year to NOK 67m (almost £4.9m) this year.

AKVA said the total order intake between January and March was NOK 917m (£66.5m), supported by strong order intake of NOK 800m (£58m) in Sea Based farming. The group order backlog at the end of the quarter was NOK 2,599m (£187m).

EBIT, or operational profit, was NOK 20m (£1.45m) up from NOK 11m (£780,000).

The company added: “The outlook for the post smolt market in Norway is still challenging due to the resource tax but is expected to normalise during the second half of 2024. Profitability improved, compared to last year, but is still below expectations.

“The profit margin in the Land Based business is influenced by the low activity level and to some extent closing of old contracts. The profitability in Sea Based is acceptable supported by a healthy product mix.”

The profitability in Sea Based was described as “acceptable”, supported by a healthy product mix. Sea Based revenues were slightly down during the period at NOK 646m (£47m).

The group order intake in Q1 2024 was NOK 800m (£58m) compared to NOK 613m (£44m) in Q1 2023.

AKVA said salmon prices are expected to remain strong driven by reduced supply. It expects to see a normalisation of the post smolt market in Norway during the second half of 2024.

As previously announced, AKVA is aiming for a revenue of minimum NOK 3.6bn and an EBIT of 4-5% in 2024.

AKVA Polarcirkel workboat