AKVA group registered a significant increase in cage based segment orders in the last three months of 2018.

AKVA obtained lower profits in Q4 2018, despite strong increase in orders

NORWAY
Saturday, February 16, 2019, 00:50 (GMT + 9)

The AKVA group closed the fourth quarter of 2018 with a growth of 32 percent in revenues and 79 percent in orders, but with lower profits than in the same period of 2017.

Record high order intake – 1 billion NOK

Revenue in the fourth quarter of 2018 reached NOK 726 million (USD 83.9 million), compared to NOK 550 million OK (USD 63.6 million) in the same period of 2017.

EBITDA of 57 MNOK in the quarter, including 25 MNOK from Egersund Net

EBITDA was NOK 57 million (USD 6.6 million), compared to NOK 60 million (USD 6.9 million) in the fourth quarter of last year.

The group's net profit decreased from NOK 27 million (USD 3.1 million) to NOK 19 million (USD 2.2 million) in the fourth quarter of 2018.

Revenue up 30% - driven by acquisition of Egersund Net

Egersund Net contributed NOK 152 million revenue and EBITDA of NOK 25 million in the quarter. Compared to 2017, ASA Nordic margins were lower, due to some problems with suppliers, which caused an increase in barge costs, since the implementation of new manufacturing lines in Helgeland Plast led to lower efficiency .

The American market continued to have a high activity, with orders for NOK 171 million in the quarter, compared to NOK 138 million in the fourth quarter of 2017.

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Revenues for the fourth quarter of 2018 in America reached NOK 177 million, compared to NOK 127 million in the fourth quarter of the previous year.

The Europe and the Middle East (EME) region continued with high activity, although its revenues decreased compared to the fourth quarter of 2017. According to AKVA, operations in Turkey, Greece, Spain and the Middle East are well positioned to participate in the future growth in the area.

As regards the Software segment (SW), its revenues in the fourth quarter were NOK 44 million (NOK 46 million in the same quarter of 2017).

Regarding the technology division for ground facilities (LBT), its revenues reached NOK 130 million (NOK 124 million in 2017).

In partnership with Sinkaberg-Hansen AS and Egersund Net AS, the AKVA ASA group established Atlantis Subsea Farming AS on February 1, 2016, with the objective of developing submersible facilities for salmon farming on an industrial scale. Atlantis Subsea Farming AS applied for six development licenses to conduct large-scale testing of the new technology and operational concept.

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On February 22, 2018, the Fisheries Directorate announced that the company received a license. At this moment, Atlantis Subsea Farming AS is in a testing phase of the technology in regards to the execution of the project.

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With respect to AKVA's results for the entire year 2018, the group highlighted that its revenues grew 24 percent year-on-year, to NOK 2,579 million. Its net profit was NOK 90 million, below the NOK 100 million it obtained in 2017, due to the impact of transaction costs of NOK 9 million.

The company also highlighted the successful completion of the acquisition of Egersund Net.

(NOK 1 = USD 0.11558)

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