Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

UPDATE: NZ King Salmon shares hit record on guidance uplift

UPDATE: NZ King Salmon shares hit record on guidance uplift, sales growth

(Recasts to reflect shares at record, adds broker comment, details of guidance)

By Tina Morrison

Nov. 2 (BusinessDesk) - New Zealand King Salmon Investments shares rose to a record after the fish farmer raised its 2018 earnings guidance, saying it expects to lift volumes while maintaining prices and improving production.

The stock climbed 3.5 percent to $2.35 and has soared 78 percent this year. They were sold in the initial public offering in September 2016 at $1.12 apiece.

The Nelson-based company, the world's largest aquaculture producer of king salmon, said today that pro-forma operating earnings before interest, tax, depreciation and amortisation are expected to be between $24.5 million and $26 million in the year ending June 30, 2018, ahead of the $22.4 million forecast in its disclosure statement for its initial public offering in September 2016, and up from $21.6 million in 2017.

It cited "improved fish survival and stronger-than-forecast fish growth" during the 2017 summer, a projected increase in 2018 sales volume to 8,000 metric tons compared with a forecast in its September 2016 product disclosure statement of 7,480mt, "solid" pricing in all markets and lower feed costs in the first half.

"They offer a product globally that's in good demand," said Peter McIntyre, an investment adviser at Craigs Investment Partners. "They're in the food segment of the market and that's what New Zealand is really good at and they are export orientated as well," he said. Management is "held in high regard" in the market and has been good at keeping the market informed since its initial public offering last year.

The first half of the 2018 financial year is expected to be "materially above" the comparable period, King Salmon said in a statement, without providing figures. Lower feed costs in the first half weren't expected to persist into the second half because it used more premium feed during the summer months, it said.

The company noted that the split of earnings between the first and second half of the financial year would differ from last year due to one-off factors and that the summer period may have a material impact on fish performance and full-year earnings.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Toxicology Tests Planned: Dead Rats Washed Up On Beaches

As many as 600 rats washed up on Westport's North Beach over the weekend to the horror of locals. DOC said they may have been killed by a recent 1080 poison drop 140km away and washed down the Buller River after heavy rain battered the coast. More>>

ALSO:

Transition To Low Carbon: Mineral And Petroleum Resource Strategy

Responsibly Delivering Value – A Minerals and Petroleum Strategy for Aotearoa New Zealand: 2019-2029 has been developed to provide the direction for the sector in the transition to a low carbon and productive, sustainable and inclusive economy. More>>

ALSO:

MethaneSAT: Methane Satellite Mission Control In New Zealand

Mission Control for an international space mission to help tackle climate change will be based in New Zealand, with the Government putting $26 million towards the state-of-the-art satellite...More>>

ALSO:

Real Estate: Late Spring Surge

The continued shortage of quality real estate listings, coupled with record low mortgage interest rates have combined to add some zing to the property market over October. More>>

Wellbeing Stats: Finances Less Terrible And Less Great

According to results from the General Social Survey, the proportion of people who felt they had enough or more than enough money to meet everyday needs increased from 51 percent in 2008 to 63 percent in 2018, Stats NZ said today. More>>

ALSO: