Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atlantic Sapphire ASA (AASZF, Financial) reported a significant increase in revenues for 2024, driven by a substantial rise in harvest volume from 1,545 tons in 2023 to 4,365 tons in 2024.
- The company achieved a reduction in fish mortality rates, which are now lower than traditional farming methods, indicating improved farming conditions.
- There has been a systematic improvement in feeding capacity, which is crucial for production capabilities in a RAS (Recirculating Aquaculture System) facility.
- Atlantic Sapphire ASA (AASZF) has successfully increased its average harvest weights, allowing access to premium pricing and improving filleting yields.
- The company is implementing a cost-cutting program and system overhauling to enhance efficiency and stability, aiming for profitability in the medium term.
Negative Points
- Atlantic Sapphire ASA (AASZF) recorded an impairment write-down of fixed assets amounting to $73 million in 2024, primarily due to increased costs for completing phase two of their project.
- The company faced low sales prices earlier in the year due to low average harvest weights, impacting revenue.
- SG&A costs increased year over year, driven by management transitions and higher insurance costs.
- The company continues to rely on a temporary chiller solution for phase one, which incurs higher costs until a permanent solution is implemented.
- There is uncertainty regarding tariffs on feed imports, which could affect operational costs, as the tariff situation in the US has been changing frequently.
Q & A Highlights
Q: What is the main reason for the increase in head-on gutted weight from 2.2 to 3.1 in March?
A: Pedro Curar, CEO: Since joining the company, our focus has been on increasing average weight to achieve premium prices and improve quality. In January, we completed biomass adjustments, allowing us to systematically increase average weight from January to March, reaching 3.1 kg, which is the minimum average weight we aim for in the short term.
Q: Can you provide an update on the expected developments in average weight beyond March?
A: Gunnard Osur Sinderhag, CFO: We expect the average weight to increase further from March levels, although we are not specifying the exact number or providing guidance on size.
Q: What is the value of the Danish plant?
A: Gunnard Osur Sinderhag, CFO: The Danish plant is written down to zero, so it has no or minimal value in our financial accounts.
Q: Will the Alaning invoice from Nova Mar be paid?
A: Gunnard Osur Sinderhag, CFO: We are trying to get all invoices paid, but I have no further comments on this specific invoice.
Q: What do you expect the CapEx to be for 2025, and how much working capital build-up do you expect?
A: Gunnard Osur Sinderhag, CFO: We are not providing guidance on these KPIs. However, we expect projects to be executed, and both harvest volume and biomass to increase.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
