Klepp, Norway-based aquaculture services and equipment provider AKVA Group posted a net loss of NOK 93 million (USD 8.9 million, EUR 9.1 million) in the third quarter of 2022.
AKVA received orders totaling NOK 650 million (USD 62 million, EUR 63.3 million) in Q3 2022, representing a year-over-year increase of NOK 34 million (USD 3.2 million, EUR 3.3 million). It also recorded an order backlog of NOK 1.6 billion (USD 152.6 million, EUR 155.9 million) at the end of September 2022. The group’s revenue for the quarter increased 14 percent to NOK 840 million (USD 80.1 million, EUR 81.8 million), but its earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by NOK 54 million (USD 5.1 million, EUR 5.3 million) to NOK 79 million (USD 7.5 million, EUR 7.7 million), while its net profit fell from NOK 14 million (USD 1.3 million, EUR 1.4 million).
According to AKVA’s quarterly financial report, the group experienced challenging profit margins due to high inflation, rising costs, and global supply chain restrictions, intensified due to the war between Ukraine and Russia, with the conflict responsible for increased freight rates, high energy prices, and increased price levels on raw materials and key components.
“The estimated profit and loss impact from the high-cost inflations in the first half year was NOK 57 million [USD 5.4 million, EUR 5.6 million]. Furthermore, the global instability has a negative impact on the net working capital and inventory levels,” AKVA said.
AKVA said the situation has normalized somewhat in Q3 2022 but is still considered to be uncertain going forward.
The company’s Sea-Based Technology division posted Q3 2022 revenue of NOK 681 million (USD 64.9 million, EUR 66.3 million), up from NOK 603 million (USD 57.5 million, EUR 58.7 million) a year previously. The segment’s EBITDA was NOK 79 million (USD 7.5 million, EUR 7.7 million), compared with NOK 70 million (USD 6.7 million, EUR 6.8 million), while its order intake was down NOK 113 million (USD 10.8 million, EUR 11 million) year-on-year to NOK 450 million (USD 42.9 million, EUR 43.8 million).
The Sea-Based Technology division’s revenue in the Nordic region reached NOK 381 million (USD 36.3 million, EUR 37.1 million), a year-on-year increase of NOK 43 million (USD 4.1 million, EUR 4.2 million). Its revenue from the Americas region was NOK 186 million (USD 17.8 million, EUR 18.1 million), an increase of NOK 46 million (USD 4.4 million, EUR 4.5 million). Its Europe and Middle East division’s revenue dropped NOK 11 million (USD 1 million, EUR 1.1 million) to NOK 114 million (USD 10.9 million, EUR 11.1 million).
AKVA’s Land-Based Technology division’s revenue for the quarter was NOK 134 million (USD 12.8 million, EUR 13 million), up from NOK 115 million (USD 11 million, EUR 11.2 million) in Q3 2021. Its EBITDA ended the period at a loss of NOK 63 million (USD 6 million, EUR 6.1 million), down from NOK 7 million (USD 668,000, EUR 682,000), while its order intake increased NOK 133 million (USD 12.7 million, EUR 13 million) to NOK 167 million (USD 16 million, EUR 16.3 million).
AKVA’s Digital division recorded revenue of NOK 25 million (USD 2.4 million, EUR 2.4 million), up NOK 5 million (USD 477,493, EUR 486,944) from Q3 2021. Its EBITDA was NOK 9 million (USD 860,000, EUR 876,000), while its order intake doubled to NOK 24 million (USD 2.3 million, EUR 2.3 million).
Most of AKVA’s revenues are generated from the salmon sector. Revenues from other species relate mainly to aquaculture operations in the Mediterranean area.
Photo courtesy of AKVA Group
