Brief: Leroy Seafood Q2 EBIT Before Fair Value Adjustment Down At NOK 322 Million

Leroy Seafood ASA

20/08/2020 05:36

Aug 20 (Reuters) - Leroy Seafood Group ASA  LSG.OL :
    * REG-LERØY SEAFOOD GROUP ASA: Q2 2020 RESULTS
    * IN Q2 2020, LERØY SEAFOOD GROUP (LSG) REPORTED REVENUE OF
NOK
4,712 MILLION, COMPARED WITH NOK 5,340 MILLION IN SAME PERIOD IN
2019
    * EARNINGS IN Q2 2020 ARE SUBSTANTIALLY LOWER THAN EXPECTED
AT
START OF YEAR
    * OPERATING PROFIT BEFORE FAIR VALUE ADJUSTMENT RELATED TO
BIOLOGICAL ASSETS WAS NOK 322 MILLION IN Q2 2020, COMPARED WITH
NOK 774 MILLION IN Q2 2019
    * KEY FACTOR BEHIND THIS IS FALL IN SALMON PRICES CAUSED BY
IMPACT
ON DEMAND OF COVID-19 PANDEMIC
    * RIPPLE EFFECTS OF COVID-19 CONTINUE TO HAVE A NEGATIVE
IMPACT ON
DEMAND FOR SEAFOOD, AND BOARD OF DIRECTORS IS NOT ABLE TO FORM
ANY DEFINITIVE OPINION ON DURATION OR CONSEQUENCES OF PANDEMIC
    * TOTAL CATCH VOLUME FOR LERØY HAVFISK WAS 19,708 TONNES IN
Q2
2020, COMPARED WITH 15,860 TONNES IN Q2 2019
    * HARVEST VOLUME FROM SALMON PRODUCED ONSHORE REMAINS
INSIGNIFICANT IN END MARKETS
    * MARKET SHARE FOR NORWEGIAN ATLANTIC SALMON MAY BE AFFECTED
BY
INTRODUCTION OF SALMON AND TROUT PRODUCTION IN NEW REGIONS AND
LOCATIONS
    * ESTIMATED HARVEST VOLUME FOR 2020, INCLUDING SHARE FROM
ASSOCIATES, IS CURRENTLY 183,000-188,000 TONNES SALMON AND TROUT
    * GROUP'S TARGET IS FOR CORRESPONDING FIGURES IN 2021 TO BE
BETWEEN 200,000 AND 210,000 TONNES
    * TO DATE IN Q3, PRODUCTION IN SEA HAS BEEN AS EXPECTED, AND
CURRENT OUTLOOK IS FOR A SIGNIFICANT REDUCTION IN RELEASE FROM
STOCK COSTS IN SECOND HALF OF 2020 AND BEYOND
    * AVERAGE SIZE OF RELEASED SALMON SMOLT AT LERØY AURORA AND
LERØY
SJØTROLL WILL BE AROUND 300 GRAMS IN 2020
    * EXPECT COMPLETED INVESTMENTS IN NEW SMOLT PLANTS, AND
ONGOING
INVESTMENTS, TO PROVIDE CONSIDERABLE GROWTH IN PRODUCTION IN SEA
IN 2020 AND YEARS AHEAD
    * DURING QUARTER, FARMING SEGMENT HARVESTED 39,000 TONNES,
COMPARED WITH 37,000 TONNES IN Q2 2019.
    * CURRENT ESTIMATES ARE FOR EARNINGS IN Q3 2020 TO BE
SIGNIFICANTLY LOWER THAN WOULD NORMALLY BE EXPECTED

Source text for Eikon:  ID:nGNE27JrPP 
Further company coverage:  LSG.OL 

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