NZ King Salmon predicts bigger harvest but flat earnings for 2020

Expects this year to match next.

New Zealand King Salmon is forecasting for operating EBITDA of between NZD 25 million (EUR 14.4 million) and NZD 28.5 million (EUR 16.5 million) in 2020, it reported in a financial statement on Friday.

King Salmon expects this year’s EBITDA to be the same for this 2019 June year.

Due to limited fish availability, it said that sales will be slightly weighted to the second six month period and mortality rates are forecast at higher than historic average rates, with average summer seasonal temperatures assumed.

Harvest volumes will likely be about 8,000 tonnes in the coming year. The company added that capital spending will be about NZD 17 million (EUR 9.8 million) for the year ending June 30, rising to NZD 20 million (EUR 11.5 million) next year as it introduces new infrastructure to improve fish survival and performance.

The investment includes additional pens and barge to utilise the increased feed limits available on Waitata and Ngamahau sites, as well for the implementation of the single year class.

In March, CEO Grant Rosewarne said that he wanted more support from the government as last year’s warm weather caused the deaths of one in five fish.

“The government says it wants things to be more green – agriculture, aquaculture – and say they want to address climate change. Well, we’re desperate around climate change. It’s already happening to us and we need that support. So far, we’re not getting it.”


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