In This Article:
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Icelandic Salmon AS (FRA:I6X) achieved higher harvest volumes in Q4 compared to previous quarters, indicating improved operational performance.
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The company reported a stable biological situation and effective control of sea lice, contributing to better production outcomes.
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A significant increase in harvesting volume was observed, with a record high of 3,000 tons in October.
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Strong demand and price performance were noted in North American and Asian markets, with 18% of volume sold to North America and 13% to Asia.
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The company secured additional sustainability-linked financing of 65 million, increasing its loan facility to 160 million, supporting future growth plans.
Negative Points
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The company faced biological challenges, including a pox virus outbreak at one of its smolt facilities, resulting in a one-off cost of 600,000.
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A 10,000-ton license for sterile salmon was revoked, impacting potential production capacity.
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The overall harvest volume for the full year 2024 decreased compared to 2023 due to earlier biological challenges.
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Pending applications for larger sites have faced delays, with no final decision expected before the end of 2025.
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The company anticipates increased costs in the first half of 2025 due to lower utilization of capacity and biological challenges.
Q & A Highlights
Q: Could you elaborate on the financing agreement mentioned in the presentation? A: Yes, this is an extension to our current sustainability-linked financial agreement with TNP and Tanske Bank. It increases the facility from 95 million to 160 million, providing crucial support for our growth plans, especially after the challenges faced in 2023. This ensures we can stay on track to reach our target of 26,000 tons. - Jonas Heidar Bergeson, CFO
Q: Volumes were moved from Q4 to Q1, yet the 2025 volume guidance wasn't increased. Is this due to production challenges or conservative guidance? A: Based on last year's experience, we've chosen a conservative approach for the 2025 volume guidance. - Bjorn Hambre, CEO
Q: What implications should we expect from the pox virus challenge in smolt production? Will this impact sea production? A: Currently, we don't expect an impact on smolt output due to the pox outbreak. We have surplus capacity in smolt production, allowing us to maintain output plans. - Bjorn Hambre, CEO
Q: Do you need larger sites to reach the 26,000 tons harvest target? A: It would be beneficial to have larger sites, but we are very close to achieving the target with our current setup. - Bjorn Hambre, CEO