Write-downs and tax shock shake AKVA group

Heavy losses in the third quarter and challenging prospects for next year.

AKVA group presents a net result of NOK -93 million (EUR -9.3m) on Friday morning, after taking restructuring costs of NOK 83 million (EUR 8.3m) and writing down a loan to the land-based fish farmer AquaCon of NOK 28 million (EUR 2.8m).

The Norwegian equipment supplier had sales of NOK 840 million (EUR 84m) in the quarter, of which NOK 681 million (EUR 6.8m) came from the Sea Based Technology segment.

Order intake was NOK 650 million (EUR 65m), and the figure was NOK 1.6 billion (EUR 160m) at the end of the period.

“At the end of 2021 AKVA group experienced challenging profit margins due to high cost inflations and global supply chain restrictions. This has been further intensified in 2022 due to the war between Ukraine and Russia. Examples include increased freight rates, high energy prices and increased price level on raw materials and key components in general. The estimated P&L impact from the high cost inflations in the first half year was MNOK 57. Furthermore, the global instability has a negative impact on the net working capital and inventory levels. The increased inventory levels are partly related to higher price levels and partly to secure supplies for our production facilities and products. The situation has normalized somewhat in Q3 2022 but is still considered to be uncertain going forward,” writes AKVA group in its quarterly report.

The aquaculture industry supplier is feeling the effects of the Norwegian fish farmers’ investment freeze.

“The implications of the introduction of a new resource rent tax are uncertain. Most likely, this will have a negative impact on the level of activity in the short and medium term.”


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