Brief: Bakkafrost won't pay 2019 dividend due COVID uncertainty

P/F Bakkafrost

25/08/2020 05:44

Aug 25 (Reuters) - P/F Bakkafrost  BAKKA.OL :
    * OPERATIONAL EBIT OF DKK 182 MILLION FOR Q2 OF 2020
    * GROUP MADE A PROFIT FOR Q2 2020 OF DKK 471.7 MILLION
    * FOR H1 2020, PROFIT WAS DKK 323.7 MILLION
    * TOTAL HARVESTED VOLUMES IN H1 2020 WERE 38,813 TGW
    * TOTAL HARVESTED VOLUMES FOR Q2 2020 WERE 20,878 TONNES
GUTTED
WEIGHT
    * BELIEVE THAT LONG-TERM OUTLOOK IS STILL GOOD AS
FUNDAMENTALS IN
PROTEIN MARKET HAVE NOT CHANGED
    * IN Q3 2020, GLOBAL HARVEST OF ATLANTIC SALMON IS EXPECTED
TO
INCREASE AROUND 5%, COMPARED TO Q3 2019
    * EXPECTED HARVEST VOLUME IN 2020 IN FAROE ISLANDS IS 50K
TONNES
GUTTED WEIGHT, EXPECTED HARVEST IN SCOTLAND IS 39K TONNES GUTTED
WEIGHT
    * ESTIMATED GLOBAL HARVEST OF ATLANTIC SALMON FOR 2020 IS AN
INCREASE OF AROUND 3-4%, COMPARED TO 2019
    * HARVEST VOLUMES FOR 2021 IN FAROE ISLANDS EXPECTED TO
REACH
62,500 TONNES GUTTED WEIGHT AND 44,000 TONNES GUTTED WEIGHT IN
SCOTLAND
    * BAKKAFROST EXPECTS TO RELEASE 15.0 MILLION SMOLTS IN 2020
IN
FAROE ISLANDS
    * BAKKAFROST EXPECTS A DECREASE IN PRODUCTION VOLUMES OF
FISHMEAL
AND FISH OIL IN 2020, COMPARED TO 2019
    * SMOLT RELEASE IN SCOTLAND IS EXPECTED TO BE 10.7 MILLION
SMOLTS
IN 2020
    * BAKKAFROST EXPECTS A DECREASE IN PRODUCTION VOLUMES OF
FISHMEAL
AND FISH OIL IN 2020, COMPARED TO 2019
    * HAVSBRÚN'S SALES OF FISH FEED IN 2020 ARE EXPECTED TO BE
110,000
TONNES, DEPENDING ON EXTERNAL SALES
    * BAKKAFROST EXPECTS TO MAKE INVESTMENTS OF AROUND DKK 350
MILLION
PER YEAR FOR 2020-2024 IN SCOTTISH SALMON COMPANY
    * BOARD OF DIRECTORS HAVE NOW CONCLUDED THAT UNCERTAINTY
OVER
COVID IS STILL HIGH AND HAVE THEREFORE DECIDED NOT TO PROPOSE
PAYMENTS OF DIVIDENDS FOR 2019
    * A HIGH EQUITY RATIO TOGETHER WITH BAKKAFROST'S BANK
FINANCING,
MAKES BAKKAFROST'S FINANCIAL SITUATION STRONG
    * THIS ENABLES BAKKAFROST TO CARRY OUT ITS INVESTMENT PLANS
IN
FAROE ISLANDS AS WELL AS IN SCOTLAND, HEREBY STRENGTHENING
GROUP, ENABLING M&A'S AND ORGANIC GROWTH OPPORTUNITIES AS WELL
AS TO FULFIL ITS UNCHANGED DIVIDEND POLICY IN FUTURE

Source text for Eikon:  urn:newsml:reuters.com:*:nWkr5dzSNI
Further company coverage:  BAKKA.OL 

 (Reporting By Terje Solsvik)
 ((terje.solsvik@thomsonreuters.com;))