Bakkafrost slides after Q3 results, guidance cut

P/F Bakkafrost

07/11/2023 08:59

** Shares in Bakkafrost  BAKKA.OL  fall 3.5% after the
Norwegian fish farmer announced in its Q3 report a reduced 
harvest forecast for the Faroe Islands and Scotland, stemming
from a strategic shift in harvest timing
    ** The company said that it has revised down its 2023 and
2024 harvest forecasts in the Faroe Islands and Scotland to
around 73,000 and 91,000 tonnes from 84,500 tonnes and 97,800
tonnes respectively
    ** "Decent figures for the third quarter but the outlook
ahead looks quite bleak," says Handelsbanken analyst Erik
Cederberg 
    ** He adds that weak outlook is mainly driven by a shift in
the company's harvest plan, moving volumes from Q4-2023 to
Q1-2024 to "let the fish grow further and gaining additional
average harvest size" 
    ** "Due to strong feed EBIT and decent EBIT in the Faroe
Islands fish farm, we predict that the share will fall 5%
today," says Kepler Cheuvreux via Swedbank Aktiellt equity
research service
    ** Including today's fall the stock has dropped by 18.18%
YTD

    

($1 = 11.1224 Norwegian crowns)

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))