Seeing improvement in the land-based market
The market for land-based is improving, and order intake and revenue levels have gradually increased throughout 2024. The recently awarded contracts with Cermaq and Laxey will have a positive effect on revenue levels in 2025, according to the AKVA group in its fourth-quarter report.
The company presented its fourth-quarter results on Friday.
They report that the company's profitability improved in the fourth quarter compared to the previous year, and the improvement is mainly linked to the results within land-based operations.
"Increased revenue and better project margins resulted in an acceptable performance for land-based in the fourth quarter," it states.
However, they point out that the market for post-smolt in Norway is still weak, but it is expected to gradually improve into 2025, and they expect a normalisation of the post-smolt market in Norway during the year.
Highlights from the land-based segment in Q4
- EBITDA improved by NOK 29m in Q4 2024 (52.8%) compared to Q4 2023, due to increased activity levels and higher project margins.
- The revenue for the fourth quarter was NOK 217m (142m). EBITDA and EBIT ended at NOK 14m (-15m) and NOK 12m (-18m), respectively. The corresponding EBITDA and EBIT margins were 6.5% (-10.9%) and 5.5% (-12.6%). Order intake in Q4 2024 was NOK 114m, compared to NOK 0m in Q4 2023.
- The order backlog at the end of the quarter was NOK 1.408 billion, compared to NOK 1.454bn the year before.
- The merger between AKVA group Denmark A/S and AKVA group Land Based A/S was completed in Q4 2024.
- RAS contract with Cermaq Chile for smolt facility was signed in February 2025 with a contract value of approximately €30m. This was a task they took over after the Billund bankruptcy, and AKVA group is now the only remaining RAS supplier in Chile
Re-use in Iceland
AKVA group reports they continue the expansion within re-use technology for grow-out, where now a second contract has been signed with Laxey in Iceland.
The company has previously delivered several facilities with re-use technology for smolt production. The first contract with Laxey for the delivery of re-use technology and consultancy services for grow-out module 1 was signed in Q2 2024. The second contract for grow-out module 2 with an estimated value of EUR 20m was signed in January 2025, subject to financing. Laxey's long-term goal is a production capacity of 27,000 tonnes, including a post-smolt strategy to serve sea-based farmers in the region.
