Continued strong growth
AKVA group completed third quarter with strong growth in order intake and revenue. Order intake came out at 546 MNOK (417 MNOK). The revenue in third quarter of 2017 ended on 484 MNOK (354 MNOK) with an EBITDA of 61 MNOK (38 MNOK). Third quarter EBITDA margin was 12.6% (10.8%). The Net Profit increased to 26 MNOK compared to 11 MNOK in Q3 2016.
AKVA group is ending the quarter with an order backlog of more than 1.38 BNOK, an increase of 56% compared to the same period last year.
A half-yearly dividend of 0.75 NOK per share was paid out in September 2017. Cage Based Technology (CBT)As in the first and second quarter, we experienced increased revenue and margins in the cage based segment compared to the same period last year, with the Norwegian market as the main driver to the growth. The acquisitions of AD Offshore and Sperre, done in Q2 and Q4 2016, is contributing to the growth in revenue and EBITDA. The positive development in the Americas region continues with a quarterly revenue of 97 MNOK, up from 39 MNOK last year. All our entities in Americas has a stronger quarter than last year in terms of revenue, and order intake ended at a very strong 91 MNOK compared to 37 MNOK in Q3 last year.
For EME (Europe & Middle East), our entity in Scotland had a strong Q3, with a positive development in order intake, revenue and EBITDA compared to last year. Our Turkish operation is stable and we are ramping up activities in Spain, Greece and Iran.
Software (SW)In the software segment the margins continue to be lower than last year mainly due to cost pressure in the Icelandic business, but this have improved during the year and Q3 has higher margins than Q1 and Q2. We are currently carrying out a strategic evaluation of Wise ehf in order to realize the potential of the business going forward.
Land Based Technology (LBT)Revenues and EBITDA are up year on year for the land based segment. Plastsveis and Aquatec Solutions had a good quarter and the cost reduction initiated in AKVA group Denmark in 2016 has given positive effect.Balance sheetThe balance sheet remains strong. Working capital as a percentage of 12 months rolling revenue is 6.2 % (8.8 %). The twelve months average working capital is 5.0 %. Cash and unused credit facilities amounted to 206 MNOK at the end of Q3 (165 MNOK). Total assets and total equity amounted to 1,521 MNOK (1,179 MNOK) and 476 MNOK (438 MNOK) respectively, resulting in an equity ratio of 31 % (37 %) at the end of Q3.
Atlantis Subsea Farming ASIn partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS, AKVA group ASA established Atlantis Subsea Farming AS on February 1st, 2016 with the purpose of developing submersible fish-farming facilities for salmon on an industrial scale. Atlantis Subsea Farming AS applied for six development licenses to enable large-scale development and testing of the new technology and operational concept.
The Norwegian Directorate of Fisheries did inform the company that the concept has progressed another step in the process to be awarded development licenses. The Directorate will go ahead with processing the application limited to 2 licenses, but have rejected the application in terms of the other 4 permits applied for. On May 9th, 2017 the company appealed the decision for 2 of the 4 rejected licenses. On June 16th 2017 the Directorate forwarded the appeal to the Norwegian Ministry of Trade, Industry and Fisheries, for their final decision.
Dividend of NOK 0.75 per share was paid out in September 2017The Company's main objective is to maximize the return on the investment made by its shareholders through both increased share prices and dividend payments. According to the AKVA group ASAs' dividend policy a dividend of 0.75 NOK per share was paid out in September 2017. Total dividend payout in September 2017 was 19.4 MNOK.
Order BacklogWe have experienced good market activity across all regions in the third quarter of 2017. The order intake in Q3 2017 was 546 MNOK (417 MNOK). The order backlog at the end of Q3 2017 was 1,380 MNOK (886 MNOK). MNOK 629 of total order backlog at end of Q3 is related to land based technology.
OutlookThe market situation is expected to continue to be strong. Our order backlog is high and the Land Based segment is in the process of delivering more profitable orders won this year, as well as continuing to see further opportunities in this segment coming.
We have strengthened our presence and hence our ability to win significant contracts around the Mediterranean area as well as on the east coast of Canada.
Improvement projects across the Group are being addressed and a Group wide strategy process is to be concluded in Q4.
About AKVA groupAKVA group is a technology and service partner to the aquaculture industry worldwide. The company has 927 employees, offices in 11 countries and a total turnover of NOK 1.6 billion in 2016. 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 40 years. The Corporate Headquarter is in Bryne Norway. Dated: 3 November 2017AKVA group ASA