Six salmon companies presented their Q2 figures today and investors are not entirely excited about it

Aslak Berge

Marine Harvest, Lerøy Seafood Group, Grieg Seafood, NTS, Austevoll Seafood and Aqua Bio Technology (ABT) all posted results today. 

Worst hit is Aqua Bio Technology, which is getting hammered 20.7 percent. The backdrop is an increasingly thin liquidity.

“Cash and cash equivalents decreased from NOK 21.8 million (EUR 2.3 million) at the end of 2017 to NOK 12.4 million (EUR 1.3 million) at the end of 1H18. Since the liquidity situation has weakened and sales are not at the previously expected level, the company said it would seek additional equity financing in 2H18,” wrote Tomas Skeivys, analyst at Norne Securities, in an update to its customers.

Sjur Malm, Lerøy Seafood, CFO. Here during the second quarterly presentation in 2018 in Bergen,Norway . PHOTO: Ole Alexander Saue.

Amongst the “big fish”, Grieg Seafood is the one which has suffered most, with a decline of 5.3 percent. Marine Harvest fell 3.5 percent, Lerøy 3.1 percent and Austevoll Seafood 1.9 percent. The last one, NTS, is up by 0.9 percent, two hours after the stock exchange commenced today’s trade.

Nordea Markets’ salmon analyst, Kolbjørn Giskeødegård, noted that Grieg Seafood lowered its projections for harvest volumes by six per cent in 2018, as the key reason behind the fall in prices.

Marine Harvest also announced reduced harvest volumes, more specifically 20,000 tonnes, or five percent of total volumes.

“Marine Harvest (MHG) delivers a second quarter spot on what was indicated in the trading update with EUR 175m in operational EBIT and 78kt harvest volume, leading to all-inclusive op. EBIT at EUR 2.24/kg or NOK 21.4/kg. Although second quarter numbers are in line, outlook for the remaining year is on the weak side. MHG cuts 2018 volume guidance with 5% (20kt), primarily due to biological problems in Norway,” commented Tore A. Tønseth, analyst at Sparebank 1 Markets.

Lerøy Seafood Group, earned EUR 102.3 million on operations, delivering a result that was EUR 12.3 million lower than that was contained in the consensus’ estimates according to TDN Finans.


Related Articles