Ísfélag (ISF) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 was USD 120.6m, down from USD 148.5m year-over-year, mainly due to the absence of a capelin season and mackerel fishing challenges.

• Net profit for 9M 2024 was USD 9.7m, a significant decrease from USD 37.0m in the prior year.

• The new trawler Sigurbjörg began operations in August 2024 after delivery in July.

• Fish processing in Þorlákshöfn ceased at the end of September 2024.

• Major investments were made in fishmeal plant expansion and cold storage facilities.

Financial highlights

• 9M 2024 EBITDA was USD 33.0m, down from USD 57.0m year-over-year; EBITDA margin fell to 27.3% from 38.4%.

• Q3 2024 revenue was USD 52.3m, down from USD 66.2m in Q3 2023.

• Q3 2024 net profit was USD 9.4m, down from USD 19.1m in Q3 2023.

• Operating income for 9M 2024 was USD 21.7m, compared to USD 47.8m in the prior year.

• Earnings per share for 9M 2024 were USD 0.012, down from USD 0.059 year-over-year.

Outlook and guidance

• No initial quota issued for capelin for the 2025 season, but future fishing remains possible.

• Investments in production capacity and new vessels are expected to improve future operations.

• Market for groundfish products is strong, with rising prices in most categories.

• Prices for frozen pelagic products remain high, but fish oil prices have dropped and fishmeal prices are expected to decline.

• Operational changes in fishing and processing are expected to improve performance.