Bakkafrost’s stronger-than-expected second-quarter harvest should lift quarterly earnings by 6-7%, according to SEB, after the Faroese salmon farmer exceeded both its own production guidance and the bank’s forecasts.
In a note following Bakkafrost’s trading update published after the market closed on Thursday, analyst Sander Lie said the company harvested 29,900 tonnes in the second quarter, around 2,600 tonnes, or 10%, above both company guidance and SEB’s estimate.
The performance was driven by the Faroe Islands, where harvest volumes reached 26,700 tonnes, 9% above guidance, with average harvest weights increasing to 5.6 kg from 5.0 kg a year earlier.
Scottish harvest volumes totalled 3,200 tonnes, around 500 tonnes above guidance. However, incident-related mortality costs rose to DKK 32 million from DKK 27 million in the same quarter last year and DKK 2 million in the first quarter, highlighting continued biological challenges in the region.
Bakkafrost’s feed division sold 37,400 tonnes during the quarter, broadly in line with SEB’s estimate of 37,500 tonnes, while raw material sourcing was unchanged from a year earlier.
Lie estimates the production outperformance will increase second-quarter EBIT by 6-7% and full-year 2026 EBIT by around 1%, assuming the company maintains its full-year harvest guidance.
The analyst noted that the premium for larger fish remained limited during the quarter, reducing the revenue benefit of heavier harvest weights in the Faroe Islands.
SEB maintained its Hold recommendation and NOK 450 target price on the stock. Bakkafrost shares were trading at NOK 410.40 when the note was published.
