One of Måsøval's facilities in Norway. 2024 has been a year of highs and lows for the company.
Photo: Daniel Skog / Måsøval.
Måsøval announced this week that it has downed again its harvest guiding for 2024. The 26,500-27,500 tonnes of gutted weight equivalents (GWE) forecast in August - already lowered from the initial estimate of 27,000-28,000 GWT - will now be 24,700-25,700 tonnes GWE.
According to the company, compared to what is seasonally normal in the region, and what was expected at the time of the Q2 presentation, it has experienced significantly higher sea lice pressure. Additional sea lice treatments have impacted production, resulting in a further negative revision to the 2024 harvest guiding.
In addition, Måsøval - which had already announced its trading update for Q3 2024 earlier this month - has advised its shareholders and potential investors in this new statement that, according to a preliminary assessment of the unaudited consolidated accounts, its operating EBIT in the third quarter was NOK -62 million (EUR -5.2 million / USD -5.6 million).
"The operational result is weaker than expected by the market and preliminary estimates by analysts covering the share. Although Måsøval does not provide financial guiding apart from harvest volume and a general indication of cost development, the company finds a notification is required as it is deemed as inside information in the view of the company and a profit warning is warranted to ensure investors are well informed," read the statement to the stock exchange.
As the company indicated yet in another stock exchange notice in August, operating results were lower due to accelerated harvesting at two sites - Måøydraga and Espnestaren - affected by ISA (infectious salmon anemia). Logistical challenges and the higher cost of harvesting salmon with ISA, in addition to low average weights, resulted in high costs and low prices for the harvested volume. At both sites, harvesting was completed during the quarter.
Finally, the Norwegian salmon farmer added that the sales and processing segment also had a negative effect on operating results due to one-time costs associated with the start-up of the new TL52 harvesting facility, which was operational as of September 3, 2024, and had a faster-than-expected volume increase.
The company is still preparing and completing the Q3 2024 financial results which are therefore subject to possible adjustments and have not yet been audited and reviewed by the auditor. The full report will be published on November 19, 2024.
Everything indicates that this Q3 will again negatively affect the company's results which, although it recovered in Q2 2024, when it reported robust results despite a volatile market, had already started 2024 on the wrong foot when, despite strong marine production, Måsøval's Q1 2024 results were weighed down by the low price achievement due to substandard quality.
