Salmon giant Mowi pays smaller dividend after challenging quarter – E24

Weak results in Norway are due to winter sores and perlesnormanetes, but the Mowi boss takes a brighter view of the situation going forward and maintains record targets.

The case is updated

The salmon farmer’s income fell 1.33 billion euros 1.33 billion eurosNOK 15.6 billion at today’s exchange rate in the first quarter, from 1.36 billion at the same time last year.

– The first quarter was biologically challenging for Mowi in Norway due to winter sores and abnormally high occurrences of pearl moths, as well as a very cold winter, says Mowi CEO Ivan Vindheim.

– I am therefore happy that the situation has improved significantly in the second quarter, he adds.

At the same time, it is proposed to pay out NOK 1.5 per share in a quarterly dividend to the owners, a total of NOK 776 million. Last quarter, the dividend was NOK 1.9 per share.

The operational operating profit operational operating profitThe company earns from the operation before interest and tax as well as value adjustments on the fish in the sea regarding salmon price, weight etc. fell to 201 million euros (2.35 billion kroner) in the first quarter, according to an earlier update, from 322 million the year before.

Maintains slaughter targets

The slaughter volume in the first three months of the year was 96,500 tonnes and stands at the end of the quarter at a record high biomass biomassquantity of fish in sea. Mowi maintains the goal of increasing this year’s slaughter volume to 500,000 tonnes, up from 475,000 tonnes last year.

This corresponds to a growth of 5.3 per cent from last year, which is once again significantly higher than the growth for the industry as a whole, where only 1 per cent growth is expected, notes the Mowi boss.

The winter’s problems with pearl sea bream and winter sores have resulted in a lower proportion of the Norwegian fish being of superior quality. This is the best fish that fetches the highest prices. Mowi achieved 17 per cent lower prices than the reference prices in the market for Norwegian fish in the quarter.

– We are now also vaccinating our fish in Norway with the new winter sore vaccine, and the results so far are promising. Combined with other measures we are taking, we therefore believe in a significantly better wound situation next year, says Vindheim.

Fish with wounds and injuries are classified as production fish. It is the worst quality of salmon that goes to human food. In order to protect the reputation of Norwegian seafood, it is forbidden to send such fish abroad before it has been “corrected”.

An overview from the Norwegian Food Safety Authority shows that the proportion of such fish at Mowi in Norway was at its worst up to 48 per cent this year.

Sees lower costs

As a result of improved biology, lower feed prices and scale scalehigher production Mowi expects lower production costs in the second half of the year.

Going forward, Mowi also believes in strong salmon prices.

– Prices for European salmon have been strong so far this year, while prices for American salmon have been weaker. We think the prices for American salmon will gradually strengthen with virtually no growth in supply this year, and with limited growth in supply in the years to come, says Vindheim.

Mowi is the world’s largest breeder of Atlantic salmon. The most important farming region is in Norway, but the company also farms in Chile, Canada, Scotland, Ireland, Iceland and the Faroe Islands.

Outside of Norway, the company’s other farming countries have delivered “strong biological performances”.

– It is reassuring to see improvements in Scotland, as well as that our Chilean operation has handled the El Niño period in a good way, says Vindheim.

So far this year, the Mowi share has risen around 8 per cent. On the Oslo Stock Exchange, the company is valued at approximately NOK 100 billion. Before today’s figures, the vast majority of analysts recommended buying the share.

Billionaire John Fredriksen is the largest owner in Mowi, followed by Folketrygdfondet.