AKVA Group expects Q4 loss due to project

The operating loss is due to the delay in projects within the Land Based segment.

AKVA Group expects Q4 loss due to project
January 21, 2020

AKVA group ASA is expecting to report a negative EBIT for the fourth quarter of 2019, according to the preliminary assessment of the results. The company's current estimate is an operating loss of between 25 MNOK to minus 30 MNOK ($2.8 million - $3.4 million).

The preliminary revenue in the quarter was lower than expected, especially within the Land Based segment, causing reduction in EBIT. The reduction was mainly caused by delays in projects. Other elements that have contributed to a shortfall of EBIT in the fourth quarter are:

  • Guarantee costs related to certain deliveries of feed barges and nets.
  • Provisions for bad debt and guarantee cost related to specific projects within the Land Based Segment.
  • Reduced margin expectations for a number of projects, specifically within the Nordic Cage Based segment.