Larger harvest volumes and higher average sales prices led to an over 40 percent jump in Q1 2024 operating revenues year over year for Frøya, Norway-headquartered salmon-farming group Måsøval.
Måsøval posted operating revenue of NOK 402.3 million (USD 38 million, EUR 35 million) in the quarter, a NOK 165 million (USD 15.6 million, EUR 14.4 million) increase over the total reported for the same period in 2023.
The group’s Q1 2024 operational earnings before interest and taxes (EBIT) of NOK 120.6 million (USD 11.4 million, EUR 10.5 million) were more than three times the NOK 35.9 million (USD 3.4 million, EUR 3.1 million) it posted a year previously, and it also reversed Q1 2023’s net loss before tax of NOK 39.6 million (USD 3.7 million, EUR 3.4 million) with a profit of NOK 54.4 million (USD 5.1 million, EUR 4.7 million).
Måsøval’s Q1 2024 net profit was almost NOK 30 million (USD 2.8 million, EUR 2.6 million), compared with a loss of NOK 31.2 million (USD 2.9 million, EUR 2.7 million) in Q1 2023.
The company also harvested 3,606 metric tons (MT) of head-on gutted (HOG) weight fish in the three-month period, compared to 1,994 MT a year previously. It achieved an average sales price of NOK 95.60 (USD 9.03, EUR 8.32) per kilogram in the quarter, up from NOK 83.90 (USD 7.92, EUR 7.30) in Q1 2023.
Måsøval’s Farming sector achieved total sales revenues of almost NOK 366.2 million (USD 34.6 million, EUR 31.9 million) in Q1 2024, including NOK 345 million (USD 32.6 million, EUR 30 million) in salmon sales, up NOK 176 million (USD 16.6 million, EUR 15.3 million) year over year. The segment’s operational EBIT more than tripled from NOK 53 million (USD 5 million, EUR 4.6 million) to NOK 164 million (USD 15.5 million, EUR 14.3 million).
Måsøval said it built up its biomass in the quarter in order to reach its full maximum allowable biomass (MAB) utilization, even in a period with low sea temperatures. The company said that harvesting was “moderate,” but the biological performance during the quarter was “strong.”
Måsøval’s Q1 2024 biomass totals amounted to 13,457 MT, of which 7,705 MT had an average weight exceeding 4 kilograms, indicating a high harvest volume potential for the second quarter.
Farming Mid, Måsøval’s largest division, achieved Q1 2024 sales revenue of NOK 355 million (USD 33.5 million, EUR 30.9 million), with NOK 334 million (USD 31.5 million, EUR 29.1 million) coming from salmon sales. Its harvest volume increased by 2,329 MT by reaching 3,468 MT.
Måsøval’s Farming West segment achieved sales revenues of NOK 11 million (USD 1 million, EUR 956,983), all of which was related to the sale of salmon. About 138 MT of salmon was harvested in the quarter, versus 854 MT a year previously.
The group’s other segment, Sales & Processing, saw its Q1 2024 revenues rise NOK 171.8 million (USD 16.2 million, EUR 14.9 million) year over year to NOK 401.2 million (USD 37.9 million, EUR 34.9 million) but its operational EBIT fall from NOK 843,000 (USD 79,574, EUR 73,340) to NOK -24 million (USD -2.3 million, EUR -2.1 million). It sold 3,611 MT of products, compared to 7,989 MT in Q1 2023.
For the 2024 fiscal year, the company’s harvest guidance is in the range of 27,000 MT to 28,000 MT, with 7,500 MT to 8,000 MT forecast to be harvested in the second quarter. Måsøval said it has the potential to produce around 29,000 MT in the year, based on its current license portfolio. In addition, its exhibition license has a top-end potential of 600 MT, and its co-location agreement with Frøya Laks could add a volume of 4,000 MT.
Also in the quarter, the group acquired a Mowi harvesting facility. The process is now finalized, and Måsøval has signed the final contract and taken over the harvesting facility. Måsøval said its intention with the acquisition is to continue the facility’s harvesting operations and develop it to increase harvesting capacity within the group.
And on 27 May, Måsøval said it detected the presence of infectious salmon anemia during a routine screening at its Fjølværet farm in Frøya Municipality, Norway.
"Confirmation on sampling results will first be confirmed after further testing, [but] the detection of virus is treated internally as a confirmation," it said. "Strict measures have been implemented to contain the virus and prevent further spread. Måsøval will harvest the site to reduce biological risk."
The company will harvest all 360,000 fish at the site, with an average weight of 5.6 kilos.
"The site was originally planned to be fully harvested in week 26, thus the change in harvest plan will have limited effect on volumes and cost, and is expected to have little effect on price achievement," Måsøval said.
