Tuesday, 23 August 2016

AKVA - On-land Fish Farm Sales 'Exploding' Trond Williksen, CEO

AKVA, Norway, sells on-land fish farm components. It's Q2 results are the best ever and it says on-land sales are exploding. This means the rest of the world is putting nails in the coffin of fish farms that remain in the water, such as Marine Harvest, Cermaq and Grieg Seafood.

See its Q2 results: http://www.akvagroup.com/news/akva-group-asa-2q-2016-financial-reporting-.

Here is the beginning of their text: 'AKVA group is on track and has completed the second quarter with good overall performance. Revenue in second quarter 2016 ended on 408 MNOK (402 MNOK) with an EBITDA of 43 MNOK (41 MNOK). Second quarter EBITDA margin was 10.4% (10.2%). With the exception of Americas, all business segments and regions are performing well in the second quarter. AKVA group is ending the quarter with the highest order backlog ever of 822 MNOK.

"AKVA group continues to be on track and has completed the best second quarter and first half ever with regards of revenue, EBITDA and order backlog. The resent year's transformation of AKVA group to become a better performing and more diversified Group is reflected in the Q2 results. Operationally and financially AKVA group is well positioned for further growth. The half yearly dividend of 0.75 NOK per share to be paid out in Q3 underlines our solid financial position", says CEO of AKVA group ASA Trond Williksen.'"

From the financials about its global operations, it is clear that on-land is doing the best. This is further proof that the rest of the world, not tied to Norwegian-style fish farms in the ocean, is moving ahead with on-land production close to markets.

Here is their specific note: 'Land Based Technology (LBT). LBT have had a significant improved performance year on year in Q2. Both Plastsveis AS and Aquatec Solutions A/S had a good first half of 2016. AKVA group Denmark A/S had another decent quarter, but there is still potential for further improvements financially. The land based segment ended the quarter with a record high order backlog and has after Q2 2016 53% of the total order backlog in the Group. Land based increased its revenues year on year with 74% and was 23% of total revenues in Q2 2016, hence land based is becoming a significant part of AKVA group. '

Do note that AKVA also sells in-ocean components, and is developing sub-sea farms, something that oceans and humanity do not want to see.

In their outlook, they note that the Canadian market has been off and will be moderate going forward, meaning, we need to start buying on-land. The public in Canada is against in-ocean fish farms and wants them on land.

In a nutshell, AKVA is a technology and service partner to the aquaculture industry worldwide. The company has around 750 employees, offices in 8 countries and a total turnover of NOK 1.4 billion in 2015.

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