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Austevoll Seafood reported its financial results for the third quarter of 2025, revealing a mixed performance across its segments. The company achieved a Q3 revenue of NOK 10 billion but faced challenges in its pelagic and salmon operations. Despite these hurdles, Austevoll maintains a strong competitive position with diversified operations and a robust balance sheet.
Key Takeaways
- Austevoll reported Q3 revenue of NOK 10 billion and EBITDA of NOK 652 million.
- The company experienced margin pressure in its pelagic segment and biological challenges in salmon production.
- Global fish meal production increased by 15%, with prices rising since September.
- Austevoll's equity ratio stands at 53%, with net interest-bearing debt at NOK 8.5 billion.
- The company expects lower costs in 2026 compared to 2025.
Company Performance
Austevoll Seafood's performance in Q3 2025 was characterized by a strong revenue figure of NOK 10 billion. However, the company faced operational challenges, particularly in its pelagic and salmon segments. The pelagic segment experienced margin pressure due to lower prices for fish oil and fish meal, while the salmon segment dealt with high sea temperatures and increased sea lice pressure, affecting growth and mortality rates. Despite these issues, the salmon segment saw a 15% volume increase from the previous year.
Financial Highlights
- Revenue: NOK 10 billion for Q3 2025
- EBITDA: NOK 652 million (NOK 800 million including 50% of Pelagia)
- Year-to-date revenue: NOK 29.9 billion
- Year-to-date EBITDA: NOK 3.9 billion
- Net interest-bearing debt: NOK 8.5 billion
- Equity ratio: 53%
Outlook & Guidance
Looking ahead, Austevoll Seafood anticipates lower costs in 2026 compared to 2025. The company is also optimistic about potential increases in cod quotas by 2027 and expects better price development across its product range. However, Austevoll acknowledges challenges in raw material availability in the North Atlantic. For salmon production, Austevoll has set a target of 195,000 tons for 2025 and plans to maintain similar volumes for 2026.
Executive Commentary
Arne, an executive at Austevoll, noted, "We are delivering a weaker quarter in all segments," highlighting the challenges faced during the period. Despite the difficulties, he expressed optimism about the company's salmon production, stating, "Fantastic production of salmon, a global growth of approximately 10%." Arne also looked forward to cost reductions, saying, "We are expecting lower cost in 2026 compared with what we have seen in 2025."
Risks and Challenges
- Margin pressure in pelagic segment due to lower fish oil and fish meal prices.
- Biological challenges in salmon production, including high sea temperatures and sea lice.
- Raw material availability challenges in the North Atlantic.
- Quota uncertainties in key markets such as Peru.
- Price fluctuations in fish meal and fish oil markets impacting profitability.
Austevoll Seafood's Q3 2025 earnings call highlighted both the challenges and opportunities facing the company. While the pelagic and salmon segments encountered difficulties, the company remains focused on leveraging its diversified operations and strong balance sheet to navigate these challenges and capitalize on future growth prospects.
Full transcript - Austevoll Seafood ASA (AUSS) Q3 2025:
Arne, Primary Speaker/Executive, Austevoll Seafood: It is a pleasure for me to invite you to Austevoll Seafood's third quarter financial presentation. I will first take you through the highlights of the quarter. Thereafter, I will go into more details of our performance in the quarter, in the different segments we are operating in, and also give some insights in the quarter to come as well. Britt Kathrine Drivenes will take you more in detail through the financial figures, and I will end this session by giving a view on the different markets we are operating in. Starting up, I would say third quarter, I think it is three main topics which I want to raise in terms of our performance in the third quarter.
In general, I would say we are delivering a weaker quarter in all segments, and it's mainly the main driver behind that is, I would say, we have had some biological challenges in Lerøy as a consequence of high sea temperatures and also higher sea lice pressure, also combined with much lower salmon spot prices in the quarter. Also, when it comes to our pelagic activity, the main reason for the weaker result is also pressure in margins, in particular in the fish and marine oil products, which are taking our result both down in South America and also in the North Atlantic. Our revenue in the third quarter is just north of NOK 10 billion, an EBITDA of NOK 652 million, and an EBIT of NOK 73 million.
If you include 50% of the EBITDA of Pelagia, our EBITDA is in total just south of NOK 800 million, whereas Lerøy is delivering approximately NOK 500 million, and the pelagic segments are approximately NOK 300 million. If you look to year-to-date in 2025, NOK 29.9 billion in revenue, NOK 3.9 billion in EBITDA, and in EBIT approximately NOK 250 million. We have a strong balance sheet, NOK 52 billion, equity ratio of 53%, and a net interest-bearing debt of NOK 8.5 billion. Austevoll Seafood is all about volumes and also what margins we are able to create based on the volumes we are running through our systems.
In this quarter, and I would say also this year in particular in pelagic, we have had pressure on margins in our fish meal and fish oil segments, mainly due to, I would say, fish oil prices have been going further down than we expected. This year, we are aiming to fish on our own fishing vessels, a volume of 450,000 tons. We are processing in our fish meal and human consumption pelagic factories a volume of NOK 1.9 billion. Whitefish, we are handling 80,000 tons on our fleet and plant, and are aiming to slaughter 219,000 tons of salmon in 2025. Starting up with pelagic, going to South America and Peru, we were expecting that we would receive the final quota late last night. I think that is delayed for today. We have to comment on the situation as we know today.
Normally, there is research in front of every season, which was also the case this year. Research started up in mid-September and October, and they did not detect that much fish in the north-centre area as expected. They did a new, I would say, small research called what we are calling Eureka, where both the industry and the scientists' vessels are going in to see if the condition has improved and establish a temporary quota of 500,000 tons. Based on the experience they had for the first three days with test fishing and also the first five to six days with catches and production, we are expecting that they will settle a new quota, and we have to wait to see what the final quota will be for the second season.
In our case, volume-wise, we are guiding on a volume of 1.2 million ton quota of fishery in November and December, and we have to see if the quota will be at that level or a bit higher than that. It still remains to see the final quota, and of course, since Peru is one of the largest producers of fish meal and fish oil, the size of the quota will also have an impact on fish meal and fish oil prices going into the new year. In Chile, I would say we had had a good year. Third quarter, a bit less volume this quarter versus third quarter 2024. Fish started spawning earlier, and we have to wait to take the remaining of the quota in the November and December period.
Have approximately 33,000 tons to catch, and hopefully we are able to do that by the end of the year. I would say we have had lower prices both on fish oil, fish meal, and on frozen products in the quarter, but also it's impacting the result from FoodCorp. But we also see that prices on frozen and prices on fish meal are also recovering now into fourth quarter. If we are able to catch the remaining quota, I think Chile will deliver a good year also in 2025, as they did in 2024. When it comes to next year's quota, the recommendation from the organisation settling the quota has a range between 5.7%-15% increase. There is a change in the law, a change in the distribution from the industry vessel to the artisanal vessels, from 90% to 70% to the industry.
Artisanal vessels are getting a higher percentage of the quota. If it is a 5%-6% increase, our volume for next year will be around 68,000 tons. If it is a 15% increase, the volume will be 74,000 tons. In the North Atlantic, we have seen reduction in raw material availability both for 2025, and also the recommendation for 2026 is further down on raw material in the North Atlantic. It is, I would say, particularly marked by a reduction of 70% of mackerel and 40% of blue whiting, and also 30% on North Sea herring, which is taking the volume further down from 2025, which also has been under the average for the latest 10 years.
I would say the conditions for our pelagic plants in the North Atlantic are going to be more challenging in terms of securing raw material than it was in 2025, and we have to adapt for that situation. If you look into the performance in terms of volumes to the plant in 2025, it is more or less on the same level as we had in 2024. As I said, the marine protein and oil segments are delivering considerably lower margins due to the reduction in prices on particularly marine oils. If the blue whiting quota is set on the level which is recommended, there will be, I would say, less raw material in for this segment in 2026.
Human consumption as well, less mackerel quota into 2025 reflects, and also the North Sea quota reflects, North Sea herring quota reflects also the volumes we had in the quarter, 86,000 ton versus 120,000 tons. Going into the end of the year, we are aiming to produce approximately 100,000 tons of volume more. I would say it's been, the season has been conducted in a good way, also considering the high purchase prices on particularly mackerel. Again, the situation is the same. The reduction in North Sea quota and the reduction in mackerel quota will affect the capacity usage on Pelagia for 2026. If you look into the result of Pelagia, you can see that the EBITDA in the quarter is considerably lower.
We are doing delivering a lower result in the feed segment, in the food segment in the quarter due to less activity and better on the health segment. If you look at the year-to-date result, I would say the reduction in EBITDA can be explained by less contribution from the fish meal and fish oil segments of Pelagia. Otherwise, health is and food is delivering slightly better than they did the first nine months.
To salmon and whitefish, I would say looking into Lerøy in the quarter, they have had four quarters now in a row where cost has been reduced and enter into the third quarter with a more challenging biological situation, mainly due to high temperatures, record high temperatures outside the Norwegian coast, and also as a consequence, a much higher sea lice pressure, and also, yeah, with a higher sea lice pressure, which also reduced the growth of the period and also increased a bit the mortality when you're doing sea lice treatments. EBIT from farming segments is negative with NOK 300 million. Of course, that's also a consequence that price achievement has been considerably lower in the quarter versus same quarter last year. It's been compensating by a better performance both on the whitefish segments.
They've done a very good quarter based on the raw material they have available. It is also pleasant to look at volumes we have been driving through in Lerøy this quarter, up 15% versus same quarter last year. Of course, it is a pity even if you are not earning that much money based on the volume you have. We have a record high quarter when it comes to the VAP sales and distribution, where we are delivering an EBIT almost doubling from same quarter last year.
Spot price is down NOK 8 year on year on the quarter, and the EBIT per kilo is NOK 1.70, which is delivering or split it between the region Lerøy Aurora, NOK 9.50, and Lerøy Midt, negative NOK 3 per kilo, and Lerøy Sjøtroll is negative NOK 1.5 per kilo, which is a better performance in particular in Lerøy Sjøtroll versus same quarter last year. Looking at volumes, we are maintaining our guidance on 195,000 tons. It's up from 170,000 tons in 2024. For our guidance in 2026, we are guiding on the same volumes that we are having in 2025 in Norway and a bit up in Scottish Seafarms to 22,500 tons. Good performance, I would say, on the wildcatch segment of Lerøy.
Despite quota is down by 32% on the main species on cod, a bit down on haddock, we are delivering better financial result in the first nine months and also for the quarter. As a consequence of, I would say, a focus, well-focused production on the land-based activity, it is challenging to produce when raw material is reducing and raw material prices are increasing. On the other hand, I would say that on the fleet side, the reduction in quota is well compensated and overcompensated by the increase of prices. Cod prices in the quarter is up with 27% versus same quarter last year. Haddock prices up with 68% and saithe prices up with approximately 58%. Now I give the floor to Britt. Thank you. As normal, we start with this table, summing up the raw material intake in the quarter.
As Arne has already mentioned, there has been a seasonal lower operation in both Chile and Peru in the quarter. The important season for food or consumer products in North Atlantic started in Q3. There has been intake of North Sea herring, and also the mackerel season started in August. As you can see, for salmon, there has been slotted a substantially higher volume in third quarter this year compared with same quarter last year. Key figures have already been mentioned, but I will short sum up. All these figures include 50% share of Pelagia. There has been an increase in the revenue in the quarter, and that can be contributed to Lerøy. They have slotted a substantially higher volume of salmon in the quarter compared with same quarter last year.
There has also been a very good operation in the VAP sale and distribution segment with increased volumes also from that part. Earnings in the third quarter are substantially down. As Arne has already mentioned, this is mostly attributed to the farming segment. There have been lower prices for salmon and trout, and also increased costs due to higher sea temperatures and sea lice pressure. In Peru, the end of the first fishing season was quite challenging with a challenging catch situation and also, of course, lower utilization of the plants. That combined with lower prices for fish meal and oil has also given lower earnings from that part. In Pelagia here in the North Atlantic, pressure on or decreasing prices on marine oil have also given lower earnings for that part.
I will start on the line income from associated as we have been through the key figures above that line. Arne has already taken you through the result for Pelagia, which is a large associated company. I will shortly comment on the other large company in this associated company, Scottish Seafarms. They have, of course, as we have here in Norway, been affected by the lower salmon prices. They have also slotted a substantially lower volume of salmon in third quarter this year compared with same quarter last year, down 40%. EBIT, including income from associated companies, are NOK 73 million, down from NOK 802 million. I would like to comment on the fair value adjustment related to biological assets. This is a non-cash line, but it is an accounting principle. It is quite large numbers, and it is positive this quarter with almost NOK 950 million.
Same quarter last year was negative with NOK 629 million. This, of course, impacts our total figures. The operating profit, including the fair value adjustment, is NOK 954 million in third quarter this year, up from NOK 127 million in same quarter last year. Net profit is NOK 529 million, up from NOK 168 million in same quarter last year. I would recommend to look into Lerøy's Q3 presentation on the VAP cost to get more details. I will shortly sum up the key drivers in this quarter, and that is, of course, the slotted volumes of salmon and trout, 59,000 tons, up 15% compared to same quarter last year. This is driven by strong biological performance leading up to Q3. We have had a more challenging biological development in Q3 with, as I mentioned, higher seawater temperatures and sea lice pressure. That has, of course, impacted cost.
Prices are down. Spot prices are down NOK 8 compared with same quarter last year. The contract share in Q3 has been 24%. Looking into the VAP sale and distribution, they have continued a very positive development and have a record quarter. This is based on a very good utilisation of the capacity, but also high sales volumes. Wildcatch, the catch volumes are in line with same quarter last year. There has been a substantially lower quotas in 2025 compared with 2024. There has also been an increase in prices, which has compensated for the decrease in quotas. For the onshore industry within this segment, of course, it is quite challenging with lower raw material available and also high raw material prices. They have been doing a good job and also delivering on the same level as last year.
Looking or going over to South America and starting with Peru, seasonal low operation in the quarter. First fishing season ended 23rd of July. As mentioned, a challenging end of the season with daily catch rates, which slowed significantly in June and July. As you can see, the prices for the finished products are down. Fish meal down 6%, fish oil down 56%. We are entering into fourth quarter with very low inventory volumes. The revenue in the quarter is NOK 825 million, EBIT of NOK 144 million, and an EBIT of NOK 85 million. Of course, lower compared to same quarter last year. In total, first fishing season this year has been down in earnings compared to same season last year. As mentioned, higher cost for the operation, but also lower prices.
Also in Chile, we have had seasonal lower operation, and the main season for horse mackerel ended in mid-August. We have approximately 33,000 tons to be left to be caught in Q4. Fish oil prices for the finished products are also down. Fish meal down 20%, fish oil 49%, and frozen 8%. Revenue in the quarter, NOK 368 million in EBIT of NOK 35 million and an EBIT of NOK 22 million. Lower prices have, of course, put pressure on our margins. Kobbe Vik & Furu Holmen, they have slotted just below 1,100 tons in the quarter, which is down 37% compared to same quarter last year. The company sells all its salmon in the spot market and, of course, affected by the lower prices for salmon. What we can say is also that there is an increase in cost due to slotting from high cost sites.
The EBIT was negative with minus NOK 12 million compared to minus NOK 16 million in the same quarter last year. Brønnøybirkeland, the two snow crab vessels, finalized their quotas in April. The vessels have been laid up since then, and they have been doing necessary maintenance to be ready for the next season starting in 2026. EBIT is minus NOK 17 million and in line with the same quarter last year. Looking at the statement of financial positions, the total assets is just below NOK 52 billion. The net interest-bearing debt is NOK 8.4 billion, and there is an equity ratio of 53% by the end of September 2025. To comment on some of the lines, tangible fixed assets increased, and that is based on investment in, among others, shielding technology. We also have in the second quarter bought two second-hand vessels, one for Peru and one for Chile.
As you can see, there is also a sharp reduction in this fair value adjustment related to biomass, both comparing to 30th of September last year, but also by the end of 2024. There is a positive quarter-on-quarter development in working capital, which I will comment more on when we look into the cash flow. As you can see here, there is a cash flow from operating activities of NOK 1.5 billion. The positive development in working capital is both in Lerøy, but also in the South American operation. Cash from investing activities is NOK -445 million, and from financing activities, NOK -878 million. This gives a net change in cash in third quarter positive of NOK 231 million. We end the quarter with a cash position of close to NOK 4.7 billion. I give the floor to you, Arne.
I will end this presentation by giving a view on the different markets we are operating in, starting off with the fish meal market and looking at production so far this year. As you can see, the volume is up by 15% among the largest producer of fish meal by week 42. Prices have, I would say, since September started to increase. Today, prices, or before the season in Peru, were close to $1,900 per ton on super prime and approximately $1,550 on standard fish meal. Still, China remains as the main destination, but we are also seeing increasing demand from Europe and Ecuador to the aquaculture industry. There has been some forward sales in front of the season in Peru.
I would say that depending on the quotas at now and the development of the fishery, you can also see a developing amount in fish meal and also fish oil prices. Chinese market, main driver behind the increase of fish meal prices from Peru, and it's mainly related to they had a quite reduced domestic production in China and increased demand and also prices. Stock level, I would say, is more or less on the same level as the average the last five years, but lower than the season or the same period last year. It is a good sentiment on fish meal prices at the moment. Fish oil up 9.3% driven by volume from Chile, in particular this first 32 weeks. Prices is down $2,400 per ton, a premium to omega-3 prices for human grade with approximately $1,000.
But I would say that, again, you will not see it's a wait and see development in fish oil prices at the time being in Peru. You have to see what the final yield will be, what the final quota will be, and how the fishery is developing before, I would say, you would see the direction of fish oil prices going forward. Salmon, fantastic production of salmon, a global growth of approximately 10% in 2025 has had an impact on price achievement. Going into 2026, you can see that there is not any expectation for further growth on a global level and not in Norway if you look at Kontali's latest estimate. The expectation from the rest of the year in November, December is that there's going to be a negative growth compared with the same two last months of the year.
All in all, up to October, an increase of 14%. We are expecting a reduced volume going in for the remaining two months and also into the first half year next year. It has been challenging when we have had prices just north of NOK 50 per kilo in terms of being salmon farmers. Hopefully, we will see better prices now in the last months that we are experiencing and also in the beginning of the quarter. Market is strong. The consumption has been 6% up in the EU, 17% up in other markets, mainly driven by demand from Southeast Asia, and also 10% up in the US market. Summing up, I would say after four quarters now with a reduction in cost, we have met some challenges, more sea lice treatment and higher cost levels in third quarter and also into fourth quarter.
It is also worth mentioning that we are expecting lower cost in 2026 compared with what we have seen in 2025. Whitefish quotas are continuously down. Our expectation now is that the reduction in the negative growth in cod quotas maybe will turn in 2026 and that we will see maybe an increase in 2027. South America, again, we were expecting to have the information yesterday. It was not published. Looking forward now to start catching again. We are excited in terms of what the final quota will be and how the fishery will be developed. It is fair to say that we are entering into 2026 with higher fish meal prices than we had in the beginning of 2025. Horse mackerel quota for ourselves on our own keel is going to be a bit down versus what we have this year.
That is mainly due to the redistribution of the quota from the industry to the artisanal vessel. Also, hopefully, we are expecting a better price development in all our products in 2026 versus 2025. When it comes to our activity in the North Atlantic, we are expecting a challenging situation in terms of utilization in our factories. One quota on important species is down on blue whiting, North Sea herring, and mackerel for next year. Hopefully, also, we are expecting other development in prices, in particular for marine oil, and do not experience what we have done in.
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