P/F Bakkafrost (BKFKF) Q3 2024 Earnings Call Transcript

P/F Bakkafrost (OTCPK:BKFKF) Q3 2024 Earnings Conference Call November 5, 2024 2:00 AM ET

Company Participants

Høgni Jakobsen – Chief Financial Officer
Regin Jacobsen – Chief Executive Officer

Conference Call Participants

Martin Kaland – ABG
Christian Nordby – Arctic Securities

Høgni Jakobsen

Bakkafrost’s report for the third quarter. My name is Høgni Jakobsen, CFO of Bakkafrost, joined this morning by Regin Jacobsen, our CEO. First, I will ask to pay attention to our disclaimer on forward-looking statements, which is included in the published presentation. This morning, we’ll start by a summary of the quarter followed by markets and sales, financials, operations and finally outlook.

In the third quarter, Bakkafrost had revenues of NOK 1.737 billion and operational EBIT of NOK 173 million. Both of these were lower than the same period last year. Faroe’s harvest increased from around 16.7 kiloton to 21,618 tonnes. A part of this was delayed harvest that was pushed into Q3 from Q2 due to the strike that we had in the second quarter in the Faroe Islands.

In Scotland, we harvested 5,411 tonnes, which was around 1,300 tonne, up from the same period last year. In our FOF division of Havsbrún, feed sales increased with 16% to around 41.5 kiloton. External sales of fish oil was 8 tonnes compared to 8,000 tonnes last year. External sales of fish meal was lower, around 9,300 tonnes compared to 16,000 tonnes last year. And Havsbrún also sourced lower volumes of marine raw materials, 40,000 tonnes compared to around 110,000 tonnes last year.

But again, we need to have in mind that last year was an exceptional year at Havsbrún, where Marine sourcing was more than 50% up from what is normally considered a strong year at Havsbrún. Cash flow from operations was positive with DKK 575 million compared to DKK 185 million, and