In the fourth quarter of 2012, AKVA group achieved revenues of NOK174.3 million (US$30.34 million) with an EBITDA of NOK-4.4 million (US$-766,000).
"Fourth quarter has, as normal been a low season quarter for AKVA group. The quarter is characterised by low activity on deliveries to cage based aquaculture. However, we have experienced strong order intake for deliveries in 2013 and see positive signals in the market, especially in the Nordic region. With the acquisition of 70% of Plastsveis AS, the Land Based Technology segment is significantly strengthened and well positioned for future profitable growth" says CEO of AKVA group ASA Trond Williksen.
The Cage Based Technology segment was influenced by slow market conditions during the year and a low order backlog at the beginning of the fourth quarter. Fourth quarter is low season for deliveries of technology and service in the Nordic market which is the largest of our market segments. During the quarter the activity level in Chile was reduced somewhat compared to last year, explained by slower activity in the market as customers are influenced by low prices on salmon, trout and coho.
In emerging markets (Export outside Scotland and Turkey) there have been limited deliveries in fourth quartr. The interest from new markets is increasing and our efforts to develop emerging markets continue and still pose an exciting potential going forward.
Software continues to deliver stable revenues and solid margins and we continue to invest in new product modules to be launched throughout 2013. It is expected that new product modules will further strengthen the financial performance of the SW segment throughout the year.
The Land Based Technology segment is positioned for future profitable growth and significantly strengthened through acquisition of 70% of Plastsveis AS in first quarter 2013. Plastsveis AS is a leading player in instalment of land based facilities in Norway. The acquisition is a natural step to strengthen the land based area in the Group and will give AKVA group a strong position in the market place when it comes to delivering a range of solutions for land based facilities to aquaculture. Plastsveis AS is a well-managed company with strong competence and operational capability in its field. The company holds significant synergies with our existing land based activity as well as with our existing activities in Helgeland Plast AS.
There has been strong inflow of new orders in the quarter especially in the Nordic region. Compared to fourth quarter 2011 the activity level in this market segment has increased significantly. Order backlog at the end of the third quarter was NOK306 million (US$53.24 million). The order inflow was NOK279 million (US$48.5 million). Total assets and total equity amounted to NOK672.6 million (US$117 million) and NOK325.3 million (US$57 million) respectively, resulting in an equity ratio of 48.4% versus 44.9% at the beginning of the year.
There is a positive outlook in Nordic market in 2013 due high salmon prices and an optimistic outlook in the medium to long term for the salmon industry. We have experienced high activity level in the market going into the New Year. In the longer term the outlook in the Chilean markets remains good and AKVA holds a strong position as a leading technology and service partner in the Chilean industry. AKVA have opened a new office in Tasmania in first 2013. This is a careful entry into the Australian and New Zealand market. We expect improvements of activities in emerging export markets. A new contract with Russian Sea-Aquaculture LLC for delivering of a complete AKVA Cage Farm to be installed in the Murmansk region was signed late December 2012.
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has more than 650 employees, offices in 9 countries and a total turnover of NOK832 million (US$145 million) in 2012.
