Norwegian biotechnology company Akva's third quarter earnings increased due to a stronger order intake across all the company's divisions.
The group's earnings before interest, tax, depreciation and amortization (EBITDA) increased 62 percent to NOK 115 million (€11.2 million/$12.6 million).
Overall revenues also jumped, by 21 percent, to NOK 771 million (€75.6 million/$84.3 million) compared to the year prior.
The company was able to grow its order intake to NOK 778 million (€76 million/$85 million) in the quarter, a 73 percent higher level than the same period last year.
The divestment, which resulted in a net gain worth NOK 18 million (€1.8 million/$1.9 million), was passed because the business no longer fit Akva's strategic focus.
The publicly-listed company rolled out several new products during the third quarter, which have potential to strengthen the company's position within the Nordic region related to feed, lice and fish welfare optimization.
Earnings for Akva's cage-based technology division doubled in the third quarter comparing to last year to NOK 98 million (€9.6 million/$10.7 million).
The segment's revenues rose by 37 percent to NOK 651 million (€64 million/$71 million), driven by stronger sales in the Norwegian barge business. However, the company still aims to improve project execution in that area.
The barges, valued at $12.6 million (€11.45 million) are expected to be delivered to Chile by August 2020. As a result, the order intake in the Americas more than tripled to NOK 284 million (€28 million/$31 million) .
The market for cages may flat line in the future, however, as the company eyes opportunities to broader its portfolio in the sector.
However, the Middle East region still performed poorer than the year prior.
The company is ambitious of its new artificial intelligence solutions such as the first version of its Fishtalk technology, which was delivered in the quarter.
Unlike the cage-based division, Akva's land-based technology division's EBITDA saw a significant decline of 31 percent to NOK 9 million (€882,000/$984,000) in the third quarter of this year compared to last year.
Revenues in the segment dropped 26 percent to NOK 92 million (€9 million/$10 million).
On the other hand, order intake increased by half to NOK 51 million (€5.0 million/$5.6 million) during the third quarter, with the pipeline of projects growing.
The company applied for six development licenses to test and operate its technology and was granted one in February 2018.
Akva Group Denmark won the contract for delivery of a €11.9 million ($13.2 million) smolt plant in the second quarter to Russian Aquaculture in Murmansk, as part of the company's larger investment in smolt production in the region.
These two agreements are not recognized in the order intake but provide basis for growth, the company said.