News
Court grants Barramundi time to fix its finances
A Singapore court has granted fish farming business the Barramundi Group four months’ protection from creditors, allowing it to get its financial house in order. The company had asked for more time.
Read MoreMilestone for Stirling’s new aquaculture Hub
A steel signing event today has marked the beginning of the final phase construction for a new sustainable aquaculture research facility at the University of Stirling.
The National Aquaculture Technology and Innovation Hub (NATIH) is intended to drive the UK’s ambition to be a world leader in modern aquaculture practice.
Read MoreAKVA reports strong financial performance
Positive momentum in the Nordic markets has helped aquaculture technology services group AKVA deliver a bullish set of financial results for the third quarter of this year.
The company said the outlook is good, with salmon prices expected to remain strong driven by reduced supply.
AKVA has reported revenue in Q3 2024 of NOK 1,011m (£71.5m) compared with NOK 817m (£58m) in the same period last year. Adjusted for the gain of MNOK 76 related to AKVA’s acquisition of Observe Technologies, the revenue was NOK 936 (£66.2), 14.5% higher compared to Q3 2023.
EBITDA or operating profit was NOK 199m (£14m) in Q3 2024. Adjusted for the net gain of NOK 71m related to the Observe transaction, EBITDA for Q3 2024 was NOK 128m (£9m) compared to NOK 78 (£5.5m) in Q3 2023.
The company said the high activity has driven by the Sea Based business segment and “continued positive momentum” in the Nordic market. The market for Land Based is still soft but the revenue level is gradually increasing.
The award of the “letter of intent” from Cermaq at the beginning of Q4, in relation to a planned smolt facility in Chile with an estimated contract value of €30m (£25m), is expected to have a positive effect on the revenue level in Q4 and onwards.
The company said the outlook for the post smolt market in Norway is still uncertain but is expected to improve gradually into 2025.
Strong performance in the Sea Based business also contributed to a significant improvement in profitability in the third quarter compared to last year. The profitability in Land Based business is improving partly due to the higher activity level and partly due to improved project margins. The Digital business segment has experienced great revenue growth in the last few years but the current cost base is still high compared to the current activity level resulting in soft profit margins.
The group recorded a total order intake of NOK 803m (£56.8m) compared with NOK 600m (£42.4m) in Q3 2023 and the order backlog was NOK 2.4bn (£170m) at the end of September 2024.
Broken down by divisions:
• Sea Based Technology saw revenue of NOK 740 (£52.3m), up 12% year-on-year. EBITDA was NOK 112 (£7.9m), up 42%.
• Land Based Technology recorded revenue of NOK 162 (£11.4m), up 31%. EBITDA was NOK 5m (£0.35m) compared with a loss of NOK 11m (£0.77m) last year.
• The Digital segment recorded revenue of NOK 34m (£2.4m), up just 3%. EBITDA for the segment was NOK 11m (£0.77m) up 10%.
AKVA said it is aiming for revenue of minimum NOK 3.6bn (£254m) and EBIT of 5% in 2024. The company has decided not to pay any dividend for the second half of 2024.
US chef shortage may be boosting demand for salmon fillets
Is a shortage of restaurant staff in the United States leading to an increase in the export of salmon fillets from Norway?
This is one theory from the Norwegian Seafood Council in its October seafood export announcement yesterday.
Read MoreOtter Ferry’s latest chapter
The expertise at a long-established fish farm is now being put to use in a collaboration aimed at benefiting the whole industry.
Read MoreTrump re-election sparks fear among seafood exporters
Nervousness has set in among Norway’s salmon exporters following Donald Trump’s re-election as US president yesterday.
During the election campaign Trump promised to impose a 20% tariff on imports including seafood which is worth around £10bn a year to Norway – most of it in the form of salmon.
The United States is Norway’s largest single market for seafood. There are also similar fears among UK, Icelandic, Norwegian and Faroese seafood companies.
Read MoreAquaculture UK set for new venue in 2026
The next edition of leading trade show Aquaculture UK is moving to Glasgow, it has been announced. The organisers, Diversified Communications, said the show, which has been held in the Highland resort of Aviemore for many years, will take place at the SEC, Glasgow over June 16-17, 2026. The 2026 Aquaculture Awards are scheduled for…
Read MoreKingfish Company sees revenue – and losses – up in Q3
Land-based aquaculture business The Kingfish Company has continued to ramp up its production, with volume up and revenue up year-on-year and the capacity of its plant revised upwards from 3,500 tonnes to 4,000 tonnes. Its operating profit moved in the wrong direction, however.
Read MoreUpbeat outlook
Trout producers in the UK and around the world are confident that they have a great story to tell.
Read MoreMowi Scotland Q3 profits up by almost 40%
Mowi Scotland enjoyed one of its best periods for at least two years, with profits jumping by almost 40% between July and September this year.
The division, which has been battling biological issues over the past few quarters, produced an operational EBIT or profit of €12.7m (£10.6m) against €9.2m (£7.6m) a year ago.
Read More