Q2 Best Quarter and First Half ever – improved performance and growth continues
AKVA group continues with very good financial performance in Q2 2015 resulting in the best quarter and the best first half ever in AKVA groups’ history. The order backlog remains high. Total revenues in Q2 was 402 MNOK (301) with an EBITDA of 41 MNOK (24 MNOK). The order backlog at the end of the second quarter was 493 MNOK (478 MNOK) which is the highest order backlog ever at the end of a second quarter for AKVA group.
“We have completed another very good quarter in AKVA group where all segments are pulling in the right direction. High order backlog and continued high market activity gives us confidence and we consider ourselves to be well on track in 2015”, says CEO of AKVA group ASA Trond Williksen.
Cage Based Technology (CBT)
Nordic had a good start of the year, but with slightly different product mix compared to 2014. Sales of sensors and cameras are all time high, deliveries of plastic cages is slightly down year on year and sales of barges continues to be very good. Chile had a good start of the year with record high activity both on technology and on services. However, we are now facing a slow down in line with the local industry. Number of employees and cost base are reduced in Q2 to be prepared for expected reduced market activity in the second half of 2015. Canada continues the good performance in Q2 with the best 1H ever with a high order backlog. Our UK operation continues the good performance in Q2 resulting in the best first half with a high order backlog. Turkey had a very good Q2 and first half. There was low activity in Export to emerging markets in the second quarter. This area is dominated by few but large contracts and this gives variations in the P&L quarter by quarter.
AKVA group Software AS continues to deliver stable and high margins with improved revenue and margins year on year. Wise lausnir ehf had a good first half with improved performance compared to first half last year. Software continues to invest in new product modules, which are expected to strengthen the financial performance of the software segment further.
Land Based Technology (LBT)
Land based has experienced improved performance year on year and quarter on quarter. It has been a good recovery in the second quarter for AKVA group Denmark A/S after a slow start of the year. Plastsveis AS is on track with a profitable first half. Both companies ends the second quarter with a good order backlog.
Good market activity has materialized in a very good order inflow in Q2 and as a consequence the best order backlog ever at the end of a second quarter for AKVA group. The order inflow in Q2 2015 was 348 MNOK (327 MNOK). The order backlog at the end of Q2 2015 was 493 MNOK (478 MNOK).
The balance remains strong. Working capital in percentage of 12 months rolling revenue is improved YoY from 12.4% to 10.4%. We are able to maintain low working capital despite record high activity. Cash and unused credit facilities amounted to 157 MNOK (144 MNOK). Total assets and total equity amounted to 1.007 MNOK and 417 MNOK respectively, resulting in an equity ratio of 42% (46%) at the end of Q2 2015.
We have a strong overall short term outlook due to high market activity and order backlog. Our target remains to outperform 2014. The strong demand in the Nordic market is expected to continue, with a shift towards more investment in land based technology. Both UK and Canada are expected to continue to perform well in the next quarters with a significant order backlog and a large portion of recurring business. We have low expectations in Chile. Majority of our Chilean customers struggle with loss making operations and a need to restructure the industry. The situation is expected to last and we are well underway to adjust our resources, costs and activity level to the situation. The land based segment is expected to have a positive development with a growing order backlog and prospect mass. There is historically high market interest for Land Based Technology. Exports to emerging markets will continue to fluctuate short term, but improved project activity is expected in second half of the year. We continue our effort to build service and after sales as a key business element in all markets and segments.
About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 701 employees, offices in 8 countries and a total turnover of NOK 1.2 billion in 2014. We are a public listed company operating in one of the world’s fastest growing industries and supply everything from single components to complete installations, both for cage farming and land based aquaculture. AKVA group is recognized as a pioneer and technology leader through more than 30 years. The Corporate Headquarter is in Bryne, Norway.
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