Mowi postpones dividend due to virus pandemic
Mowi has become the latest of several salmon farmers that have put their shareholder dividends on ice because of Covid-19.
In a trading update on the first quarter of 2020, Mowi said it had decided to postpone the decision on Q1 dividend until the second quarter as it was essential to maintain a strong financial position amid the heightened uncertainty caused by the pandemic.
“The situation is challenging for all and Mowi is no exception,” stated the company.
More costs
“While our operations have continued to run more or less normally so far, we are incurring more costs than usual due to extensive measures implemented internally and externally. We are monitoring the situation closely and are ready to take further measures if needed.”
Mowi harvested 83,000 gutted weight equivalent (GWE) in Q1, 1,000 tonnes fewer than guided.
The regional harvest totals were:
- Norway 50,500 tonnes
- Scotland 9,000 tonnes
- Canada 8,000 tonnes
- Chile 14,000 tonnes
- Ireland 0 tonnes
- Faroes 1,500 tonnes
- Total 83,000 tonnes
Mowi Scotland’s harvest was considerably lower than the same period in 2018, when it harvested nearly 16,000 tonnes. The company was forced to harvest some volume early in the second half of last year due to biological problems that affected Scottish fish farmers.
45% drop in earnings
Operational EBIT for Mowi in Q1 this year was approximately €107 million in Q1 2020, a drop of around 45% compared to the €196m earned in Q1 2019.
Of that Q1 2020 total, farming made €101m, sales and marketing €14m and feed lost €1m.
Total operational EBIT per kg through the value chain was approximately:
- Norway €1.65
- Scotland €0.65
- Canada €0.90
- Chile €1.20
- Ireland No harvesting
- Faroes €2.80
The contract share in Q1 was 43% in Norway and 75% in Scotland in the quarter. Cost was 0.22 €/kg higher than in the fourth quarter of 2019 on 29% lower volumes.
