“A horrible quarter”: Bakkafrost shares tumble

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Bakkafrost crashes on the stock exchange.

The share price of the Faroese fish farming company has fallen by 13.2 per cent, or €600 million, after the presentation of the results for the third quarter.

Operating profit was 76 per cent lower than the investment banks’ consensus estimate, after a cocktail of biological factors increased both mortality and operating costs.

The investment bank Fearnley Securities has written that it is difficult to find anything positive in the report, and expects that the consensus for 2022 will come down by 10-15 per cent following the presentation.

The headline in Fearnley Securities’ analysis is: “A horrible quarter”. According to the bank, the weak result is due to challenging biology in Scotland and a conscious decision to accelerate slaughter in the Faroe Islands, partly offset by stronger margins in the FOF segment.

“The company has also reduced the guidance in Scotland from 40,000 to 30,000 tonnes, which is disappointing. It also affects the guidance for 2022. The consensus was with volume expectations of 110,000 tonnes in 2022, and now they will harvest 103,000 tonnes,” said analyst Nils Thommesen to Finansavisen.

Fearnley has a sales recommendation with a price target of NOK 640. Bakkafrost’s latest share price, half an hour after the stock exchange opened, is NOK 663.