Pelagia Holding AS
Pelagia Holding AS
05/13/2022 | Press release | Distributed by Public on 05/12/2022 23:01
Pelagia Holding AS - Q1 2022 Financial Report
Tid13.05.2022, 05:00:00
MeldingsID562166
UtstederIDPLH
InstrumentPLH01
MarkedOslo Børs
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Pelagia Holding AS - Q1 2022 Financial Report
Financial Report Q1 2022
Revenues for Q1 22 were 2.219 MNOK (Q1 2021: 2.332 MNOK). EBITDA was 184 MNOK in Q1 22 (Q1 2021: 133 MNOK). Profit before tax was 74 MNOK in Q1 22 (Q1 2021: 46 MNOK).
In Q1 22 Pelagia had some decrease in raw material volume in the FOOD division compared to Q1 2021. Overall, a small reduction of raw material is expected for 2022 due to lower qoutas of Norwegian Spring Spawning Herring and Mackerel. It remains unclear whether a fishing agreement can be reached between Norway and UK for 2022. This lack of agreement could, as a result, cause a repeat of the outcome of 2021 this year. The Norwegian fishing fleet did not have the usual access to fish Mackerel in the UK fishing zone in 2021. The season therefore started earlier in Q3 2021 while the fish resource was available in the Norwegian fishing zone. Normally, this will also reduce the quality of the raw material and lower the price to the fishing fleet.
Pelagia generates revenue worldwide and, for the FOOD division in particular, Eastern Europe remains an important market. The current war in Ukraine could increase the risk related to the operations in the FOOD division somewhat.
For the FEED division in the increase in the capelin quota has compensated for the reduction in blue whiting raw material.
28 March 2022 Pelagia signed an agreement with Arne Stang AS to purchase 100% of the shares in Norsk Fiskeindustri Invest AS (NFI). NFI owns 51,05% of the shares in Karmsund Protein AS which is a producer of fish meal and fish oil. A fulfilment of the agreement is dependant of an approval from the Norwegian Competition Authority.
The market demand for the HEALTH division is expected to remain solid also in 2022. In 2H 2021, the HEALTH division completed a major milestone in its project to increase overall production capacity. We expect the effects of this increase will be seen gradually through 2022. Challenges with logistics, in particular, associated with the US market, remain a risk factor.
The majority of the long-term bank financing of Pelagia is due in December 2022. From 31 of December 2021 this financing has therefore been classified as short-term. It is expected that a new long-term financing will be in place well ahead of the expiry date for the current financing.
The Group's ability to utilise its production capacities depends on the supply of raw materials in the North Atlantic and thus the size of the global quotas that are distributed between the countries which have a share of these fish resources. The prospects for the fisheries on which the group bases its operations in total remain stable going forward. The long-term goal of Pelagia is to favour the sustainable management of the main fish stocks. At the same time, it could be a risk that the fisheries are impacted by climate changes long term.
As for many other companies, the Covid-19 situation has presented challenges for Pelagia. The employees of Pelagia have made a great effort to maintain normal operations in all our locations. Pelagia, as a producer of food, health related ingredients and raw materials to fish and animal feed production, has so far not experienced a significant change in the demand for its products. In common with many others in the industry, we have experienced higher costs associated with our international freight and logistics. These costs challenges seem to remain through 2022.
No events have occured after the balance sheet date that have material impact on the presented quarterly report.
For further information see attached the Q1 2021 Financial Report.
For any questions, please contact:
CEO Egil Magne Haugstad [email protected]
CFO Rolf Andersen [email protected]
See www.pelagia.com for further information about the company.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act
Revenues for Q1 22 were 2.219 MNOK (Q1 2021: 2.332 MNOK). EBITDA was 184 MNOK in Q1 22 (Q1 2021: 133 MNOK). Profit before tax was 74 MNOK in Q1 22 (Q1 2021: 46 MNOK).
In Q1 22 Pelagia had some decrease in raw material volume in the FOOD division compared to Q1 2021. Overall, a small reduction of raw material is expected for 2022 due to lower qoutas of Norwegian Spring Spawning Herring and Mackerel. It remains unclear whether a fishing agreement can be reached between Norway and UK for 2022. This lack of agreement could, as a result, cause a repeat of the outcome of 2021 this year. The Norwegian fishing fleet did not have the usual access to fish Mackerel in the UK fishing zone in 2021. The season therefore started earlier in Q3 2021 while the fish resource was available in the Norwegian fishing zone. Normally, this will also reduce the quality of the raw material and lower the price to the fishing fleet.
Pelagia generates revenue worldwide and, for the FOOD division in particular, Eastern Europe remains an important market. The current war in Ukraine could increase the risk related to the operations in the FOOD division somewhat.
For the FEED division in the increase in the capelin quota has compensated for the reduction in blue whiting raw material.
28 March 2022 Pelagia signed an agreement with Arne Stang AS to purchase 100% of the shares in Norsk Fiskeindustri Invest AS (NFI). NFI owns 51,05% of the shares in Karmsund Protein AS which is a producer of fish meal and fish oil. A fulfilment of the agreement is dependant of an approval from the Norwegian Competition Authority.
The market demand for the HEALTH division is expected to remain solid also in 2022. In 2H 2021, the HEALTH division completed a major milestone in its project to increase overall production capacity. We expect the effects of this increase will be seen gradually through 2022. Challenges with logistics, in particular, associated with the US market, remain a risk factor.
The majority of the long-term bank financing of Pelagia is due in December 2022. From 31 of December 2021 this financing has therefore been classified as short-term. It is expected that a new long-term financing will be in place well ahead of the expiry date for the current financing.
The Group's ability to utilise its production capacities depends on the supply of raw materials in the North Atlantic and thus the size of the global quotas that are distributed between the countries which have a share of these fish resources. The prospects for the fisheries on which the group bases its operations in total remain stable going forward. The long-term goal of Pelagia is to favour the sustainable management of the main fish stocks. At the same time, it could be a risk that the fisheries are impacted by climate changes long term.
As for many other companies, the Covid-19 situation has presented challenges for Pelagia. The employees of Pelagia have made a great effort to maintain normal operations in all our locations. Pelagia, as a producer of food, health related ingredients and raw materials to fish and animal feed production, has so far not experienced a significant change in the demand for its products. In common with many others in the industry, we have experienced higher costs associated with our international freight and logistics. These costs challenges seem to remain through 2022.
No events have occured after the balance sheet date that have material impact on the presented quarterly report.
For further information see attached the Q1 2021 Financial Report.
For any questions, please contact:
CEO Egil Magne Haugstad [email protected]
CFO Rolf Andersen [email protected]
See www.pelagia.com for further information about the company.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act