Austevoll Seafood (Buy, TP: NOK108.00) - Problem in Peru
The second fishing season in Peru was cut short after crews reported 90% of catches were juvenile fish (only 35% of the quota was caught). According to a report in Undercurrent News, the Peruvian government is investigating whether quota data was manipulated. The reduced quota means we have cut our estimates of earnings from Austral, and in turn cut our Austevoll Seafood 2020e EPS by 4.7%. We forecast Q4 operating EBIT of NOK819m, in line with consensus (results due at 06:00 CET on 25 February). However, we reiterate our BUY and NOK108 target price.Austevoll Seafood is a pelagic fishery and seafood company with operations in Norway, Chile, Peru, Ireland and the U.K. Co.'s operations include fishing vessels, fishmeal plants, canning plants, freezing plants, and salmon farming. Co. has four segments: salmon and trout, which consist of the production to sales and distribution of Atlantic salmon and trout; fishmeal and oil, which consist of the production and sales of the products; pelagic North Atlantic, which consist of the production, sales and distribution of fishmeal, fish oil and frozen pelagic fish products; and human consumption, which consist of the production, sales and distribution of fresh, frozen and canned fish products.
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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