August 21, 2018 / 5:46 AM / a month ago

UPDATE 1-Bakkafrost Q2 operating profit above forecast, raises investments

(Adds operational EBIT per kilo and other details)

Aug 21 (Reuters) - Fish farmer P/F Bakkafrost:

* Bakkafrost q2 operational ebit DKK 407.9 million ($62.57 million) (Reuters poll DKK 387 million) vs DKK 459 mln in q2 2017

* Harvested salmon volumes were 12.9 thousand tonnes gutted weight as earlier announced vs 18.4 thousand tonnes in Q2 last year

* Operational EBIT in farming NOK 39.09 ($4.62) per kilo in Q2 vs NOK 33.50 in Q2 last year

* Operational EBIT in VAP (value added products) NOK -11.00 per kilo in Q2 vs NOK -13.01 in Q2 last year

* Global harvest growth in salmon is expected to be around 6-8 percent in 2018 versus previous view of 4 percent

* Global supply growth next three quarters expected to be between 3-5 pct

* Global supply increased by 8 pct in Q2

* Bakkafrost expects to harvest 49,000 tonnes in 2018 (Reuters poll 50,400) versus may forecast 51,000 tonnes

* The reduction is due to earlier harvest in a-13 borðoyarvík in q2 2018 because of precautionary action to maintain a good biological situation

* Bakkafrost has signed contracts covering around 12 pct of expected harvested volumes for rest of 2018

* Bakkafrost: expects to release 13.9 million smolts in 2018 versus previous guidance of 13.9 million

* Havsbrún’s sales of fish feed in 2018 are expected to be at 80,000 tonnes, depending on external sales

* Outlook for farming segment is good

* Bakkafrost expects to make investments of around DKK 3 billion during 2018 to 2022

* We foresee great opportunities for development in future and to be able to transfer these opportunities into realities, large investments are needed

* Acquisition of north landing in USA has been closed in q3 2018

* Aim of investment program is to minimize biological risk, increase efficiency and create sustainable organic growth

* Maintenance capex is included in investment program

* Dividend policy in future, which is unchanged although a new investment program is announced Source text for Eikon: Further company coverage: ($1 = 6.5192 Danish crowns) ($1 = 8.4525 Norwegian crowns) (Reporting By Ole Petter Skonnord)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below