AKVA posts profit warning as costs rise

Aquaculture technology company AKVA has warned that it expects to post a loss for the second quarter of 2022.

After recording EBIT (earnings before interest and taxation) of  NOK 103m (£8.6m) for Q1 of this year, AKVA Group said that Q2 resulted in a loss of NOK 41m (£3.47m).

Expected revenue for Q2 of the current year is up, however, at NOK 907m (£76.7m), representing an increase of 9% compared with the same period last year.

AKVA said profitability has been affected by a number of factors. High inflation rates and supply chain restrictions worldwide driven by the Russia-Ukraine conflict have led to an  estimated NOK 37m (£3.1m) in additional costs. Continued uncertainty related to supply chain restrictions and cost inflations may impact the profitability for the rest of 2022, the company said.

Other factors included a one-time cost provisions of NOK 31m (£2.6m) within the Sea Based segment, primarily related to an ongoing barge project in Canada, and one-time warranty and cost provisions of NOK 34m (£2.87m) related to specific Land Based projects.

AKVA is expecting a strong revenue of MNOK 907 in Q2 22, representing an increase of 9%.

Further details will be presented in AKVA’s second quarter presentation on 12 August.


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