Måsøval Q1 earnings decline on higher costs and biological challenges
Norwegian salmon farmer Måsøval reported weaker financial results for the first quarter of 2025, with group operational EBIT falling to NOK 22 million ($2.11 million/€1.89 million), down from NOK 109 million ($10.46 million/€9.37 million) in the same quarter last year.
The group harvested a total of 5,226 tonnes gutted weight (GWT), including 621 tonnes from co-location agreements. This compares with 3,606 tonnes in Q1 2024, of which 1,324 tonnes came from co-location. Revenues for the quarter totalled NOK 681 million ($65.38 million/€58.57 million).
Group average sales price came in at NOK 78.9 per kilo ($7.57/€6.78), down from NOK 106.1 per kilo ($10.19/€9.12) in Q1 2024.
Farming segment operational EBIT fell significantly to NOK 11.1 per kilo ($1.07/€0.95), compared to NOK 42.3 per kilo ($4.06/€3.64) in the same period last year.
Farming Mid reported NOK 7.6 per kilo ($0.73/€0.65) in operational EBIT, down from NOK 43.5 per kilo ($4.18/€3.74). The decline was attributed to the harvest of expensive biomass affected by sea lice pressure in the second half of 2024. In the Farming West region, operational EBIT was NOK 9.6 per kilo ($0.92/€0.83), down from NOK 12.4 per kilo ($1.19/€1.07), with results impacted by Pasteurellosis at one site.
Commenting on the quarter, CEO Helge Kvalvik said: “We ended a tough quarter with a weaker financial performance than expected. Looking forward I see lower expected cost and improved superior share.”
The company highlighted several developments expected to support performance in the coming quarters, including the start of value-added production (VAP) at the TL52 site from Q2, and a new 10-year educational farming licence awarded by Møre and Romsdal County Council.
Måsøval also confirmed that its long-term bank financing has been extended by one year, now maturing on 28 February 2028. The revised agreement includes a reduced interest coverage ratio (ICR) requirement and an increased leasing facility.
The company additionally announced a long-term harvest agreement and potential share sale involving Pure Norwegian Seafood and Nordic Halibut.
CEO Helge Kvalvik and CFO Anders Hagestande presented the results in Norwegian at 08:00 CET on Wednesday at Auditorium H2 in Oslo. A webcast is available via RoyalCast.
The full Q1 2025 report and presentation are available on Måsøval’s investor relations site.