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AKVA Achieved Good Q1 Results

16 May 2013

NORWAY - AKVA group, a technology and service partner to the aquaculture industry, achieved revenues of 222.1 million NOK (243.7 MNOK) in the first quarter of 2013 with an EBITDA of 10.4 million NOK (39.7 MNOK). There was strong growth in the Nordic market whilst revenues in Chile declined.

"There has been strong growth in Nordic market with improved top line and earnings in Q1. At the same time there has been reduced top line and earnings in Chile, Canada and Scotland. Over all, the underlying operational performance is in line with Q1 2012. An important step in the emerging export market is achieved with the signed National Prawn Company contract in Saudi Arabia in Q1 and the general order inflow in the quarter is very good," says CEO of AKVA group ASA Trond Williksen.

In the Cage Based Technology segment AKVA experienced strong growth in the Nordic segment in Q1. There was a decline in revenues in Chile in Q1 as expected. The decline is explained by low prices on salmon, trout and coho as well as financial and biological uncertainty in Chile.

Canada and Scotland had a slow start of the year, impacted by local fish health issues. Delivery and revenue recognition of large Export projects is shifted into the second quarter.

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 strengthen the financial performance of the SW segment throughout the year.

The Land Based Technology experienced significant improvement in Q1 2013 compared to previous years, caused by improved margins and a reduced cost base. Recirculation technology is on its way of becoming a mature technology. Growing prospect mass gives signals of increased interest in the market. The Land Based Technology segment is positioned for future profitable growth and strengthened through acquisition of 70 per cent of Plastsveis AS in March 2013.

There has been a very good inflow of new orders in the quarter especially in the Nordic and Export regions. Compared to first quarter previous years the activity level in this market segment has increased significantly. Order backlog at the end of Q1 2013 was 327 MNOK (275 MNOK). The order inflow in Q1 2013 was 242 MNOK (235 MNOK).

Total assets and total equity amounted to 762.2 MNOK (736.5 MNOK) and 337.9 MNOK (341.5 MNOK) respectively, resulting in an equity ratio of 44.3 per cent (46.4 per cent).

The group maintains its positive outlook in the Nordic market for the coming quarters. Significant growth in salmon prices into 2013 drives demand for technology and services. The company sees some positive signals in Chile after significant decline in volumes of sales and deliveries in Q1 compared to 2012.

Industry and investments in Chile are influenced by financial and biological uncertainty, but strong increase in salmon prices is easing the situation. AKVA is monitoring the market closely and adjusting according to the development. The company has moderate expectations in 2013 in UK and Canada due to fish health issues. Performance in Export is expected to be good in the next quarters due to deliveries of large projects.

The continued effort to build service & aftersales is starting to pay off. This is a key business element in AKVA group going forward and applies in all of its regions as well as all technology business segments. A strong focus on working capital and cash management continues.

TheFishSite News Desk



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