Lower volumes sold, frozen stock and mortality events hit Nova Austral in Q4

Write-offs of Beagle licenses wiped out USD 6.9 million alone. Salmon farmer also lost 4.8 million smolts in December affecting JV stocking.

The Altor and Bain Capital-owned salmon farmer Nova Austral posted a Q4 revenue of USD 29.2 million. A 29 per-cent decrease from last year.

The company presented an EBIT of USD -19.7 million in the quarter.

Sales were lower than in the previous quarter, due to lower volumes (down 34 per-cent).  During Q4, 2,900 tonnes were harvested.

This was offset by lower market prices,  sold mainly in frozen fillets (-USD 10.2 million) and frozen HON (-USD 2.6 million).

Yearly revenues were impacted by sales of frozen stock, 6,200 tonnes at low commodity prices. Considering frozen inventories, supply is expected to grow 3 per-cent in the year.

During the last two weeks of December, Nova Austral experienced three mortality events in its hatchery, losing 4.8 million smolts. The cause of mortality was intoxication. The total impact in terms of costs was USD 3.8 million.

Other costs include smolt elimination (-USD 1.4 million ), losses from JV due to an ISA case (-USD 0.5 million), costs from non-operating sites (-USD 1 million), write-offs of Beagle licenses (- USD 6.9 million) and fines (-USD 0.4 million).

Nova Austral drew USD 10.8 million from its revolving credit facility during the quarter, which was mainly used to pay feed suppliers and Skyring capex. Salmones Austral subsidiary Trusal announced last year that it is working with Nova Austral to operate three licences Skyring Sound, in the Magallanes region of Antarctic Chile.  Due to the mortality events at Nova’s hatchery, one JV site will have to be stocked with 1.35 million smolts sourced from a third party. Another site has had its restocking postponed until June.

 

 

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