Måsøval (MAS) Q3 2024 earnings summary

Executive summary

• Group revenue for Q3 2024 was MNOK 530, down from MNOK 670 in Q3 2023, with operational EBIT at MNOK -61 compared to MNOK 113 last year, mainly due to lower salmon prices and higher costs.

• Harvested volume was 7,095 tonnes, nearly flat year-over-year, but average sales price dropped to NOK 65.8/kg from NOK 82.8/kg.

• High sea lice pressure and ISA in Region Mid led to increased costs, all infected fish being harvested, and operational challenges.

• Sales and processing were negatively impacted by start-up costs at TL52 and sales of ISA fish, resulting in operational EBIT of MNOK -31.3.

• Operational challenges included start-up costs for the new TL52 harvesting facility.

Financial highlights

• Operating revenue for Q3 2024 was MNOK 530, down from MNOK 670 in Q3 2023, driven by lower average sales prices.

• Group operational EBIT margin was -11.4% in Q3 2024, down from 16.9% in Q3 2023.

• Net profit for the period was MNOK 5.0, compared to MNOK 49.5 in Q3 2023, aided by a significant tax income reversal.

• Earnings per share (EPS) for Q3 2024 was NOK -0.47, versus NOK 0.19 in Q3 2023.

• Positive cash flow from operations of MNOK 81, with net interest-bearing debt at MNOK 1,826.

Outlook and guidance

• Full year 2024 harvest volume guidance is 24,700–25,700 GWT, with 75% from Region Mid.

• Q4 2024 harvest volume guidance is 5,400–6,400 GWT, with 60% from Region West and 40% from Region Mid.

• Full year 2025 harvest volume guidance is 29,000–31,000 GWT, with 60–65% from Region Mid.

• CAPEX guidance for 2024 reduced to MNOK ~270.

• Salmon prices for Q4 2024 are expected to decrease year-over-year; 2025 futures indicate higher prices.