“Profitability is significantly impacted by increased costs from high inflation rates, warranty and cost provisions,” said AKVA, which is headquartered in Norway and has a branch in Inverness and others in Chile, Denmark, Spain, Greece, Iceland, Canada, Australia, and Turkey.
The company said the main items that had contributed to the operating loss in Q2 were:
- High inflation rates and supply chain restrictions worldwide driven by the Russia-Ukraine conflict with estimated NOK 37 m in additional costs. Continued uncertainty related to supply chain restrictions and cost inflations may impact the profitability for the rest of 2022.
- One-time cost provisions of NOK 31 m within the Sea Based segment, primarily related to an ongoing barge project in Canada.
- One-time warranty and cost provisions of NOK 34 m related to specific Land Based projects.
Further details will be presented in the company’s second quarter presentation on Friday, August 12.