August 25, 2010
AKVA reports decrease in operating revenues
Aquaculture technology group AKVA has released its second quarter results, with operating revenues at NOK176.3 million (US$28 million) against NOK164.3 million (US$26.1 million) last year.
Year to date operating revenues were NOK334.3 million (US$53.1 million) versus NOK316.7 million (US$50.3 million) last year. The group recorded an operating loss of NOK11.9 million (US$1.9 million) compared to a loss of NOK0.4 million (US$64,000) in same period last year. Restructuring charges of NOK6.3 million (US$1 million) impacted negatively.
"The market situation is fairly much the same as at the end of the first quarter. UK and Canada are developing fairly well and there are some signs that the Chilean market is slowly improving although from a very low level compared to the past," according to a statement from AKVA.
In April, the group was awarded a major contract for Cromaris in Croatia for delivery of about NOK54 million (US$8.6 million) worth of equipment and technology. This is an important contract in positioning the group for cage-based farming in the Mediterranean area.
However in the Norwegian market, which by far is the most important, the visibility is less clear. The investment activity is relative low despite the salmon industry enjoying high salmon prices and sound underlying earnings. In face of this, the group is undergoing a restructuring process aiming at reducing the cost base as well as improving operations to restore profitability at lower revenue levels.
The group is still search for a new chief executive after the departure of Knut Molaug.
