Lice forces Måsøval into issuing results warning

The large Norwegian salmon farmer Måsøval has this week issued a results warning ahead of its third quarter report next month.

It has blamed biological issues and most notably high salmon lice levels, which is currently affecting several companies, for the problem.

It is also reducing its harvest guidance for this year from 26,500 to 27,500 tonnes down to 24,700 to 25,700 tonnes.

Måsøval says the operational result is weaker than expected by the market and preliminary estimates by analysts covering the company’s share.

The statement added: “Although Måsøval does not provide financial guiding apart from harvest volume and a general indication of cost development, the company finds a notification is required as it is deemed as inside information in the view of the company and a profit warning is warranted to ensure investors are well informed.

“Operational results are weaker due to accelerated harvesting of two sites with ISA [infectious salmon anaemia], at Måøydraga and Espnestaren.”

Måsøval said challenging logistics and more expensive harvesting of salmon with ISA, in addition to low average weights resulted in high costs and low prices for harvested volume.

The harvesting of the sites with ISA (Måøydraga and Espnestaren) was finalised during the quarter.

The statement continued: “Sales and processing segment had a negative effect on the operational results due to one-time costs in order to make the new harvesting plant TL52 operational.

“The plant was operational from September 3rd 2024, and had a faster ramp up of volume than expected.

“The company has also experienced substantially higher sea lice pressure, compared to what is seasonally normal in the region, and what was expected at the time of the Q2 presentation.

“More treatments of sea lice have hampered production resulting in a negative revision of harvest guiding for 2024. “

Måsøval said it is still in the process of preparing and completing financial results for third quarter, which are subject to finalisation and other potential adjustments, if any, and the information has not been audited or reviewed by the auditor.

The full third quarter report will be published on 19 November.