Here’s why Citi says crypto prices have been weak recently
Investing.com -- Bakkafrost’s (OL:BAKKA) third-quarter profit fell sharply as lower salmon prices and losses in Scotland offset record biological performance in the Faroe Islands, the company said on Tuesday.
The Faroe Islands-based salmon producer reported an operational EBIT of DKK 22 million for the quarter, down from DKK 173 million in the same period last year.
Revenue in the Faroe Islands was DKK 1.41 billion, compared with DKK 1.42 billion a year earlier, while Scotland generated DKK 282 million, down from DKK 317 million.
Operational EBIT in the Faroe Islands dropped to DKK 227 million from DKK 310 million, and Scotland posted a loss of DKK 205 million, widening from DKK 138 million.
“We are not satisfied with the financial results in this quarter, which were impacted by weak market prices and continued high global supply” chief executive Regin Jacobsen said in a statement.
“However, we are very pleased with the exceptionally strong biological performance in the Faroe Islands. Our farming operations delivered record survival, strong growth, and the best biological results ever achieved in Bakkafrost’s history.”
Global salmon supply rose 11.9% in the quarter from a year earlier, according to Kontali Analyse, while reference prices for 4-5 kilogram superior salmon declined 13.1%. Bakkafrost said prices were pressured by higher production, particularly from Norway and Chile.
Farming costs in the Faroe Islands fell 12% year over year in the second quarter and an additional 14% in the third quarter.
“Farming costs in the Faroe Islands continue to decline … reflecting the impact of excellent biology, efficient farming, and disciplined operations,” Jacobsen said.
In Scotland, biological performance was stable early in the quarter but declined in September after a Pasteurella bacteria outbreak at the Portree farming site.
The incident led to increased mortality and early harvests, which affected results. The Applecross hatchery showed progress under new management, with operations stabilizing and supporting the production of large, high-quality smolt.
Combined harvest volumes rose to 30,678 tonnes gutted weight from 27,029 tonnes a year earlier, with 25,392 tonnes from the Faroe Islands and 5,286 tonnes from Scotland.
The Faroese farming segment reported an operational EBIT loss of DKK 1.13 per kilogram, while the Scottish segment recorded a significantly larger loss of DKK 36.09 per kilogram.
In freshwater operations, 8.4 million smolts were transferred, up from 6.8 million in the same quarter last year. Of these, 4.8 million were from the Faroe Islands and 3.6 million from Scotland.
The Faroese freshwater segment achieved an operational EBIT of DKK 40.71 per kilogram, while Scotland’s freshwater operations reported a loss of DKK 66.88 per kilogram, which included DKK 25 million in incident-based costs.
The Feed, Oil and Fishmeal segment sourced 39,940 tonnes of raw material, nearly unchanged from 40,134 tonnes a year earlier, with an operational EBIT margin of 12%, down from 20%. Feed sales increased to 49,087 tonnes from 41,513 tonnes.
Bakkafrost expects to harvest 104,000 tonnes gutted weight in 2025, including 82,000 tonnes from the Faroe Islands and 22,000 tonnes from Scotland.
A DKK 5 billion investment plan for 2026-2030 aims to expand hatchery and processing capacity and build new freshwater treatment vessels.
“Despite financial headwinds this quarter, the strong biological foundation across the Group positions Bakkafrost well for the future,” Jacobsen said.
“Our priorities remain unchanged - to strengthen biological control, maintain cost discipline, and deliver sustainable long-term value through operational excellence.”