AKVA Group reported a positive Q1 2023 despite what it calls “challenging market conditions,” including the implications of Norway’s new salmon farm resource rent tax.
The Sømna, Norway-based aquaculture equipment provider posted Q1 2023 revenue of NOK 874 million (USD 81 million, EUR 75 million), up 3 percent compared to Q1 2022. The company said it also saw a strong order intake of NOK 1.17 billion (USD 109 million, EUR 100 million), up 12 percent from NOK 1.048 billion (USD 98 million, EUR 90 million) in Q1 2022.
The company’s earnings before interest, taxes, depreciation, and amortization decreased in Q1 2023 to NOK 59 million, (USD 5.5 million, EUR 5 million), down from NOK 102 million (USD 9.5 million, EUR 8.7 million) in Q1 2022.
The company also highlighted a EUR 40 million (USD 36.8 million) contract with Nordic Aqua Partners for phase one of its recirculating aquaculture system farm in Ningbo, China.
Despite the positive order intake, the company said the market for post-smolt projects in Norway is “still on hold” due to the country’s proposed salmon resource rent tax. The company said it does not expect any new investment decisions within the post-smolt segment before all uncertainty related to the tax is resolved.
The company also said it opposes the new resource rent tax on salmon farming.
"AKVA Group does not believe that the proposal for a new resource tax will contribute to the desired political development of the industry, and we are strongly against the government's proposal,” the company said.
The company said it encourages Norway's government to set an upper percentage for the total tax burden, and that the resource tax be designed so that new investments in hatcheries and post-smolt production are “still economically attractive.”
Photo courtesy of AKVA Group
