AKVA Group has posted Q2 2022 revenues of NOK 907 million (USD 93.5 million, EUR 91.3 million), up 9 percent year-over-year.
AKVA’s full Q2 results will be delivered on 12 August, 2022. However, according to the Stavanger, Norway-based aquaculture services and equipment provider’s preliminary results statement, its profitability has been significantly impacted by increased costs from high inflation rates, warranty, and cost provisions. As a result, its Q2 2022 earnings before interest, taxes, and depreciation (EBIT) is expected to show a loss of NOK 41 million (USD 4.2 million, EUR 4.1 million).
Most of AKVA’s revenues are generated from the salmon sector. Revenues from other species relate mainly to the Mediterranean area. In Q2 2022, AKVA achieved revenues of NOK 832 million (USD 85.7 million, EUR 83.8 million), earnings before interest, taxes, depreciation, and amortization (EBITDA) of NOK 79 million (USD 8.1 million, EUR 8 million), and net profit of NOK 16 million (USD 1.6 million, EUR 1.6 million).
AKVA said high inflation rates and supply chain restrictions worldwide driven by the Russia-Ukraine conflict – generating an estimated NOK 37 million (USD 3.8 million, EUR 3.7 million) in additional costs – contributed to its significant EBIT drop. AKVA said continued uncertainty related to supply chain restrictions and cost inflations may impact its profitability for the rest of 2022.
AKVA also warned about a one-time cost provision of NOK 31 million (USD 3.2 million, EUR 3.1 million) within its sea-based segment related to an ongoing barge project in Canada, and one-time warranty and cost provisions of NOK 34 million (USD 3.5 million, EUR 3.4 million) related to a few of its land-based projects.
In July 2022, AKVA confirmed its wholly owned subsidiary, AKVA Group Land Based A/S, had been awarded a post-smolt recirculating aquaculture system contract with Cooke Aquaculture's Kelly Cove Salmon. The estimated contract value is EUR 14.3 million (USD 14.6 million), with the design work starting in August 2022 and commissioning taking place in Q4 2024.
Photo courtesy of AKVA Group
