Covid restrictions hit AKVA profits in second quarter
AKVA group has blamed a downturn in profit and revenue in the second quarter of this year on the impact of Covid restrictions on both its land-based and cage segments.
The aquaculture services and equipment provider saw its profits drop by 38%, from NOK 26m to NOK 16m.
EBITDA (earnings before interest, taxes, depreciation, and amortisations) was down 15%, from NOK 93m to NOK 79. And revenue for Q2 was NOK 832 million (£68m), a decrease of 3% compared to Q2 2020.
Land-based technology
The order intake in the quarter was NOK 0.9 billion, with a backlog of NOK 1.9bn at the end of June 2021. Some 51% of the total order backlog at the end of Q2 related to land-based technology.
Revenues in the Americas decreased compared to the same period last year, but they increased in Europe and the Middle East.
AKVA said it had ‘acceptable activity and order intake but challenging profitability’, which was impacted by ‘final commercial clean-up and provisions for old land-based projects’.
Health and safety
‘AKVA group have maintained a strong focus on the measures implemented after the Covid-19 outbreak in March 2020 to ensure the health and safety of our employees and customers, to monitor and optimise the overall liquidity in the company, to maintain the security of supply during the crisis and a steady order intake to ensure work for all in AKVA group,’ said the company in its Q2 report.
‘In the first half of 2020, the pandemic impacted our land-based segment the most, with cancellation and postponement of contracts.
‘In 2021, the pandemic hit the cage-based segment, with restrictions on import of foreign labour to Norway.’
In the short term, the company expects the negative impact from the pandemic to continue.
