AKVA group reports €4 million loss amid inflationary pressures

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Negative profit announcement after heavy loss provisions.

AKVA group expects a strong turnover of NOK 907 million (€91.4 million) in the second quarter, which represents an increase of nine percent compared to the same quarter last year. But profitability is significantly affected by increased costs from high inflation, guarantees and cost provisions.

EBIT is expected to be negative with NOK 41 million (€4.1 million) for the second quarter of 2022, the equipment manufacturer writes in a statement.

Source: Infront

The main items that have contributed to the significant deficit on EBIT in the second quarter are:

– High levels of inflation and restrictions in the supply chain worldwide driven by the Russia-Ukraine conflict with an estimated NOK 37 million (€3.7 million) in additional costs.
Continued uncertainty related to restrictions and costs in the supply chain and inflation may affect profitability for the rest of 2022.
– One-off cost provisions of NOK 31 million (€3.1 million) within the Sea Based segment, primarily related to an ongoing fleet project in Canada.
– One-off guarantee and cost provisions of NOK 34 million (€3.4 million) related to specific land-based projects.

It is not disclosed which projects within fleets and land-based facilities are affected by the cost provisions.

Illustration: AKVA group