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Akva's results lifted by strong order intake in the Nordic region

The company continues to struggle in European and Middle Eastern regions.

Norwegian equipment supplier Akva group's earnings soared in the second quarter largely because of better cage-based technology sales and doubling sales in the Nordic region.

Earnings before interest, tax, depreciation and amortization (EBITDA) doubled to NOK 101 million (€10.1 million/$11.3 million) compared with the same period last year.

The group's overall revenues also grew 27 percent to NOK 798 million (€80.1 million/$89.6 million), according to the latest second quarter results.

Cage-based division

Earnings and revenues for the cage-based technology strengthened in the second quarter across all operating regions except the Middle East and Europe.

EBITDA for the division jumped more than 42 percent to NOK 664 million (€66.7 million/$74.5 million), compared to the same quarter last year, while revenues more than doubled to NOK 85 million (€8.5 million/$9.5 million), owing to an 85 percent surge in sales from the Nordic region.

The company reported better margins in the area, however, the Nordic region remains victim of fierce industry battle and competition, but there is leeway for operational improvement in the coming future.

Several improvement programs in the Nordic area have started and new products will launch this month to strengthen the company's position in the area.

The cage-based technology division was also positive in the Americas, with revenues growing 5 percent to NOK 124 million (€12.4 million/$13.9 million).

The revenues do not consider the latest sales and supply with Grieg for the delivery of barges, which may portray itself in the next financial reporting results.

Unlike the rest of the regions, the European and Middle Eastern side of the business saw revenues slip 36 percent to NOK 58 million (€5.8 million/$6.5 million), but the company announced Greece, Spain and the Middle East are currently well positioned for upcoming growth potential.

Land-based technology division

Unlike the former section, revenues in the land-based supply division went down 19 percent to NOK 95 million (€9.5 million/$10.7 million), while earnings remained flat at NOK 12 million (€1.2 million/$1.3 million) compared to the second quarter last year.

However, the company anticipates better results following the recent land-based contract signed with Russian Sea for €11.9 million ($13.3 million) as part of the company's larger investment in land-based smolt production in the area.

The order backlog for projects is strong for all geographic regions. The company also worked on project execution but the timing of the improvement is reliant upon the planning and execution of infrastructure works at customers.

Software division

Revenues and earnings in this part of the business saw a slight decrease of 7 percent to NOK 39 million (€3.9 million/$4.4 million) and 20 percent to NOK 4 million (€401,520/$448,952), respectively.

This comes after Akva called off the sale of its Icelandic software arms Wise to Advania in a deal which was worth ISK 1 billion (€8.2 million/$9.5 million) due to challenges in obtaining the approval of the transaction by Icelandic regulators.

The company also partnered with the artificial intelligence specialists Observe Technologies and the first module with feeding assistants has already kicked off in the market.

The agreement materialized with 15 customers using the solution.

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