Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Proximar Seafood AS (STU:84Q, Financial) achieved a solid price premium of NOK123 per kilogram for their Fuji Atlantic Salmon, demonstrating strong market reception.
- The company successfully resolved turbidity issues and installed an ozone system, improving water quality and production conditions.
- Proximar Seafood AS (STU:84Q) has secured additional funding of approximately NOK44 million for working capital, ensuring financial stability.
- The company reported a superior rate of 99.8% for their harvested fish, indicating high-quality production.
- Proximar Seafood AS (STU:84Q) is experiencing strong interest and demand for their product, both domestically in Japan and from international markets.
Negative Points
- Biofilter incidents led to a reduced feeding regime, impacting growth rates and harvest volumes in the fourth quarter.
- The company expects a downward revision of approximately 500 tonnes in harvest volumes for the first half of 2025 due to production issues.
- Proximar Seafood AS (STU:84Q) reported a loss of NOK63.5 million after tax for the fourth quarter, highlighting financial challenges.
- The company requires additional working capital due to lower harvests in the first half of 2025, indicating cash flow constraints.
- Production costs per kilo are currently high, and the company has not yet reached its target cost efficiency due to being in the ramp-up phase.
Q & A Highlights
Q: Can you share information concerning Phase 2 of Proximar's operations?
A: Yes, we are currently focusing on getting Stage 1 up and running as planned in 2025. However, we are also considering alternatives for future growth, including potential locations in Japan and interest from outside Japan. Phase 2 and future growth could develop in several ways, but our current focus is on stabilizing Stage 1. This will facilitate easier financing for Stage 2, potentially through debt financing or other structures like long-term leases or partnerships. - Joachim Nielsen, CEO
Q: Will Proximar Seafood have enough funds to keep production running until it reaches max capacity?
A: Due to lower harvests in the first half of the year, we will need additional working capital, which we are addressing through debt facilities. We do not plan any equity transactions for working capital. For Phase 2 financing, we will need to revisit this later. - Ole Willumsen, CFO
Q: Is the production cost per kilo as earlier estimated?
A: Currently, we do not report cost per kilo as we are in the ramp-up phase, and costs are high. However, we maintain our estimate for EBIT cost per kilo at full utilization, expecting it to be around NOK70 per kilo in the future. - Ole Willumsen, CFO
Q: How far and wide is the Fuji Atlantic Salmon sold in Japan?
A: The salmon is primarily sold in areas around major cities such as Tokyo, Yokohama, Osaka, and Shizuoka. Due to limited volume, distribution is concentrated but will gradually broaden. We are also receiving demand from abroad, indicating potential export volumes in the future. - Joachim Nielsen, CEO
Q: Are there any plans for CapEx related to Stage 2 in 2025?
A: No, we are not planning any CapEx related to Stage 2 in 2025. Our focus remains on stabilizing Stage 1 and achieving operational goals. - Joachim Nielsen, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
