AKVA group upbeat as it unveils record Q2 revenues
The AKVA aquaculture technology services group delivered a record high quarterly revenue in Q2 of NOK 1,014 million (£73.4m). This represents an increase of 8% on a year ago.
The EBITDA or operating profit increased from NOK 86 million (£6m) in Q2 2023 to NOK 110 million (£8m) in Q2 this year.
The total order intake of NOK 888 million (£64m) in Q2 2024 was supported by acceptable order intake of NOK 713 million (£52m) in sea-based activity. The order backlog was NOK 2.4 billion (£174m) at the end of June 2024.
The group said the acquisition of 100% ownership in Observe Technologies was completed at the start of Q3.
The report continued: “The activity level in the second quarter was high with record high quarterly revenue and acceptable order intake.
“The high activity level is driven by the Sea Based business segment and positive momentum in the Nordic market.
“The market for Land Based is still slow and AKVA has not been awarded any new significant contracts so far in 2024.
“The outlook for the post smolt market in Norway is still slow due to the resource tax but is expected to improve gradually going forward.
“Profitability improved significantly in the second quarter compared to last year, and the improved profitability is primarily related to the Sea Based business. “
Looking ahead, AKVA said salmon prices are expected to remain strong driven by reduced supply.
AKVA expects to see a normalisation of the post-smolt market in Norway during the second half of 2024 and in 2025. It is aiming for revenues of at least NOK 3.6 billion (£260m) and an EBIT of 4-5% in 2024.
