NZK Market Update
1 February 2022
New Zealand King Salmon – Trading Update
The Board of New Zealand King Salmon advise that we are currently experiencing
higher than expected sea farm mortality. Particularly warm seawater temperatures,
most notably in the Pelorus Sound, are contributing to elevated mortality. The
situation continues to unfold, and we are deploying best practice measures to
counter the heat of summer and other contributing stressors. This outcome is
particularly disappointing for our dedicated teams who closely monitor and care for
our fish because our improved farming model was showing good results.
Climate change and warming sea temperatures have been identified as key
Environmental, Social and Governance risks for the business and NZKS has put
measures in place to mitigate these risks, including the adjustments to our farming
model, and our application for our Blue Endeavour open ocean farm this year has
proven to be particularly challenging.
It is not uncommon to see an increase in mortality over summer particularly on our
westerly Pelorus farms and this is one of the main reasons we have applied for Blue
Endeavour in the cooler, deeper and faster current conditions of the Cook
Strait. The resource consent hearing was completed in December and a decision is
expected in the next few months.
This unforeseen increase in mortalities will seriously impact our FY22 full year result
and FY23 because our harvest will be reduced. To minimise this impact, we are
evaluating options to accelerate our existing harvest schedule starting this week.
Our most recent earnings guidance was proforma EBITDA of $10.5m to
$12.5m. Although we are still working to quantify the impacts of the increase in
mortalities, our latest estimate is a reduction in our FY22 EBITDA by $4.0 - $5.0m to
a revised range of $6.5 – $7.5m (previously $10.5m – $12.5m).
ENDS
Contacts
Grant Rosewarne, Managing Director and CEO
Ben Rodgers, CFO, New Zealand King Salmon
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- KFL — Kingfish Limited: Kingfish delivers $57m First Half Profit2021-11-22
“Kingfish Limited results announcement Results for announcement to the market Name of issuer Kingfish Limited Reporting Period 6 months to 30 September 2021 Previous Reporting Period 6 months to 30 September 2020 Currency NZ$ Amount (000s) Percentage change Revenue fr…”
- KFL — Kingfish Limited: KFL – December 2021 monthly update2021-12-13
“1 A WORD FROM THE MANAGER In November, Kingfish’s gross performance return was down (3.2%) and the adjusted NAV return was also down (3.2%). This compares with the local market benchmark index return, the S&P/NZX50G, which was down (2.9%). Market Update New Zealand equities,…”
- KFL — Kingfish Limited: KFL – March 2022 Quarterly Newsletter2022-04-25
“Kingfish continues to back quality growth companies During the March quarter the stock market behaved like a “voting machine”, but we continue to bank on companies that will “weigh-up” over time. Benjamin Graham was one of the great investing minds. A key principle of his is t…”