Måsøval TL52 facility in Hitra, which will start production in Q2 2025.
Photo: Krzysztof Zboralski / Måsøval.
If 2024 was an up-and-down year for Måsøval, the results for Q1 2025 seem to follow suit. The Norwegian salmon producer reported higher harvest volume and revenue, but also weaker financials than expected.
As was the case in Q1 2024, in the first quarter of 2025, the problem has not been the amount of fish harvested, but how much of it has not reached a superior grade. The Group reported a harvest volume of 5226 GWT (including 621 GWT harvested in co-location arrangements), up almost 45% from 3606 GWT in the same period last year.
This higher harvested volume resulted in an increase in sales revenue of NOK 219 million over Q1 2024, but lower prices reduced revenue by NOK 71 million. In total, Farming, Måsøval's largest segment, achieved sales revenues of NOK 501 million, of which NOK 391 million was from sales of salmon.
By areas, margins in the Central region fell as a result of low market prices and expensive biomass harvest due to high sea lice pressure in the second half of 2024. In the West region, margins were affected by pasteurellosis at one site while other sites in the region performed well.
Sales and processing segment, meanwhile, sold a total of 7,051 GWT, resulting in sales revenues of NOK 596 million in Q1 2025, compared to NOK 401 million in Q1 2024, up 48.62%.
All in all, group revenues were NOK 681 million, 57.63% higher than in the same period last year, when they reached NOK 432 million, but the total group operational EBIT was NOK 22 million, which is 79.8% lower than in Q1 2024, when it was NOK 109 million.
"We ended a tough quarter with a weaker financial performance than expected. Looking forward I see lower expected cost and improved superior share. We are excited to start VAP production at TL52 from Q2 and in the quarter we were chosen as partner to Møre and Romsdal County Council to operate an educational licence for 10 years," Måsøval CEO, Helge Kvalvik, commented, already looking forward.
Beyond the figures, in its Q1 2025 results presentation, the Norwegian salmon producer also highlighted other matters such as the agreement between Pure Norwegian Seafood (PNS) and Nordic Halibut (NOHAL) whereby the latter is granted the right to use PNS's processing facilities in Averøy, a municipality in Møre og Romsdal county, in the Norwegian region of Nordmøre.
In addition to securing the facility's long-term processing capacity, Måsøval (PNS' main shareholder) and Nordic Halibut signed an option agreement that allows Nordic Halibut to take ownership of PNS. The prerequisite for such a change of ownership is that acceptance and agreement are also reached with the minority shareholders of Pure Norwegian Seafood.
"PNS is one of the few harvesting facilities with expertise in halibut harvesting, and with Nordic Halibut's goals of an annual production of 10,350 tonnes HOG by 2031, this provides grounds for optimism about the operations on Averøy going forward," explained Måsøval in its report to shareholders.
Also in Møre og Romsdal, the company reported a partnership with the County Council for an extension of the educational license for farming of salmon to be able to continue to offer educational programs in aquaculture at Hustadvika High School. Pending the issuance of the license by the Directorate of Fisheries, the license would be for 10 years for a capacity of 780 tons of MAB, and the planned start of production would be the second half of 2025.
In addition, as CEO Helge Kvalvik did in his statements, Måsøval highlighted another strategic project, the start of its VAP production for third parties from Q2 at TL52 facility in Hitra. Through this agreement, filleting services for third-party salmon farmers will be offered until the end of the year.
As for the outlook for the remainder of the year, the Norwegian salmon producer estimated that the total annual harvest volume in 2025 will be 29,200 GWT for the Group, including an estimated 31% harvest in the co-location partners. Approximately 68% of the total annual volume is expected to be harvested in the central region.
Måsøval also expects costs to decrease in the second quarter and the superior share to increase. However, it also warned that the average price for superior grade salmon is expected to decrease in Q2 2025 compared to Q2 2024.
"On 21 May, prices for Q1 2025 salmon futures traded on the Euronext MATIF at 74.62 NOK compared to NOK 112.34 in the same quarter last year," the company explained in its Q1 2025 results report. "For 2025, we quote the European salmon futures listed on Euronext Salmon futures calculated in NOK per kilo. European salmon futures for 2025 indicate an annual average price for superior grade salmon sold spot price of NOK 85.2 per kilo."
Regarding the market, Måsøval said that Kontali forecasts supply growth of 5.8% in 2025, although it also noted that potential demand is uncertain due to the tariff situation caused by the application of U.S. tariffs.
According to the report, the company's strategy will be to sell above 80% in the spot market and to reach fixed contracts only for strategic customers.