Atlantic Sapphire (U/review, TP: NOK) - Another profit warning
Atlantic Sapphire released a trading update on 8 August, stating H1 revenues of USD8m and an EBITDA loss of USD34m, in line with our estimates. High temperatures in its tanks have led to weak biomass growth and thus a profit warning for H2, where the company sees a lower harvest and revenue than it previously expected. We believe this could cause liquidity issues towards end-2023e and have hence downgraded to HOLD (BUY) and cut our target price to NOK5 (6). The full Q2 report is due at 17:00 CET on 24 August.Atlantic Sapphire AS. Atlantic Sapphire AS is a Norway-based company, which farms Atlantic salmon in land-based recirculating systems in Denmark and the United States. The Company uses the production technology Bluehouse, which comprises the entire production cycle - from an egg hatchery to harvested fish ready for truck pick-up. Also, the Bluehouse implies production free of antibiotics, hormones, pesticides, metals and synthetic pigment. The product portfolio includes whole fish, as well as a range of fillets and cuts. The customers comprise primarily restaurants and retail stores on the Unites States market. Also, the Company exports products to such markets as Canada, Chile and Europe.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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