February 19, 2010

AKVA 4Q revenue down 25%

Norwegian aquaculture equipment and systems specialist, AKVA Group, has reported a 25% lower operating income than the same period last year in its fourth quarter results.

The company said that revenue was affected by restrictive investment policies in the salmon industry in general during 2009. Operating revenue in the fourth quarter was NOK143 million and the period's EBITDA showed a loss of NOK16.1 million (US$2.68 million).

Business volume continued at a low rate in the fourth quarter with correspondingly low underlying earnings. In addition to low business volume the results were severely affected by re-evaluation of projects, accounting adjustments and some other one-off items amounting in total to about NOK18 million (US$3 million) of which around half of it is related to accounting adjustments.

The re-evaluation of projects is primarily related to land based recirculation projects where actual costs and cost estimates for the deliveries have increased. Firm task have been implemented to secure improved project management operationally as well as financially going forward. The same applies regarding procedures on the accounting side.

The announced restructuring plan is advancing according to plan, aiming at reduced operating expenses and improved cost flexibility.

As a result of the restructuring implemented during the fourth quarter 2009, the financial reporting will be adapted to the new organisation in future reporting. This implies that the division into the business areas INTECH and OPTECH will be ended.