Share price crashes 36 percent.
After the release of yesterday’s results, where a deficit of 51.5 million dollars was announced and extensive problems with access to liquid oxygen for the fish tanks was reported, Atlantic Sapphire is taking a pummelling on the stock exchange.
All gains made on the Oslo Stock Exchange in the past three years have been wiped out in one morning. The latest trading price is NOK 48.30.
Under extreme pressure
There is tremendous sales pressure. Over three million shares have changed hands during a four-hour trading session. Investor confidence is under extreme pressure.
One of those showing reduced confidence in the company’s business plan is DNB Markets, which downgraded the price target on Atlantic Sapphire to NOK 77 from NOK 120.
“After another weak update, we have downgraded EBITDA estimates by US$65 million for 2021 and US$26 million for 2022 and 2023″, writes DNB Markets, adding that their new price target is based on a 50 per cent probability of success, compared to earlier 60 per cent probability,” said an analysis reproduced by TDN Direkt.
Not safe
“We are in an unparalleled situation,” Johan Andreassen, CEO of Atlantic Sapphire, said in a conference call on Thursday night according to E24 .
The United States has been hit by a fourth wave of coronavirus infections, and the number of hospital admissions has skyrocketed. At the same time, a new and more effective treatment method is used where patients are supplied with oxygen through the nose instead of the mouth.
“This has created a shortage of liquid oxygen in the market, and we do not feel confident in ensuring the necessary access for our fish,” Andreassen said.
