Måsøval battles winter demons to produce solid Q1

The large central Norwegian salmon farmer Måsøval has reported a strong first quarter performance, despite encountering some of the problems that have hit a number of producers.

The company battled against jellyfish, winter storms and cold sea temperatures during the period, but its teams battled these well, the company said.

Måsøval recorded revenues of NOK 402 million (almost £30m) in the first quarter harvesting 3,606 tonnes gross weight.

These figures compare to NOK 237 million (£17m) and a harvest of 1,994 tonnes gross weight in the same quarter last year.

The operational EBIT or operational profit was NOK 120 million (£8.8m) compared to just NOK 36 million (£2.6m) 12 months ago.

CEO Helge Kvalvik said: “During the quarter the group not only harvested more salmon than guided[estimated], but also exited the quarter with a high biomass with harvest ready fish.

“Cost position improved significantly in the quarter, positioning us for a strong Q2.

“Results are however somewhat hampered by low price achievement due to downgrading. The quality is substandard our responsibility as a farmer and food producer.”

He added: “We have intensified our work on fish health to improve the quality within the entire value chain.”

Måsøval said losses in the sales and processing department due to non-recurring events overshadows a strong operational quarter.

Looking ahead, the group expect to ramp up harvesting into Q2, anticipating a harvest volume of 7,500-8,000 tonnes in Q2. For the full year, the group expects to harvest 27,000-28,000 GWT (gutted weight).

Spot prices are expected to be higher in Q2, with fish pool futures for Q2 last traded at NOK 122 compared to NOK 110 for Q1.

“The group has taken important strategic measures to integrate vertically and increasing key capacities by taking over the harvesting plant TL-45 and signing a time charter contract on an additional wellboat,” the company added.