Aquaculture equipment orders at an all-time high

Despite a dip in EBITDA margins – falling from 10.8 percent to 7.8 percent – AKVA ended 2018 on a high, with an order backlog worth 1.4 billion kroner.

Work on the Atlantis Subsea Farming concept has been underway since 2014

AKVA's Nordic cage-based technology (CBT) segment reported lower margins “due to ongoing manufacturing issues at suppliers, which have caused increased barge costs and the implementation of new manufacturing lines at Helgeland Plast has led to lower efficiency”. 

However, they report “high market activity” in the Americas, after securing a feed barge sales and supply contract with Grieg NL. In Europe and the Middle East (EME) they say that their “operations in Turkey, Greece, Spain and Middle East are well positioned for taking part of future growth in the area”.

Their land-based technology (LBT) division signed a €15.6 million contract for a smolt plant operated by Ænes Inkubator and a €3 million contract with AKVA group Chile.

Atlantis Subsea Farming, their submersible fish-farming system which they jointly developed with Sinkaberg-Hansen and Egersund Net, is currently being tested following the award of a single development licence in Norway.

Outlook

The company has an optimistic outlook for the year ahead, based on a high order intake in the Nordic region; increased opportunities on the east coast of Canada; the signing of the large land-based contract with Ænes Inkubator – a segment that continues to be strong in the Nordics as well as the Americas; good demand for their products in Chile; and the successful integration of Egersund Net, allowing nets, cages and moorings to be sold in combination.