Ísfélag (ISF) Q4 2024 earnings summary

Executive summary

• Revenue for the year was $171.1 million, with net profit at $16.1 million, both significantly lower than the previous year due to the absence of capelin fishing and poor mackerel catches.

• Cod, Atlantic salmon, herring, and sild operations performed well, with the new trawler Sigurbjörg and freezer trawler Sólberg contributing positively after commencing operations in August.

• Prices increased for fresh and frozen products, but fishmeal prices were stable and fish oil prices dropped significantly.

• Production totaled 47,000 tons, with 32,600 tons of fish products and 14,400 tons of meal and oil.

Financial highlights

• Annual revenue: $171.1 million; net profit: $16.1 million; EBITDA: $48.2 million; EBITDA margin: 28.2%.

• Q4 revenue: $50.5 million; net profit: $6.5 million; EBITDA: $15.2 million; EBITDA margin: 30.1%.

• Total assets at year-end: $778.1 million; equity ratio: 70.8%; net interest-bearing debt: $90.7 million; NIBD/EBITDA: 1.88.

• Net profit declined over 58% year-over-year; taxes and fees increased 6%.

Outlook and guidance

• Capelin quota for the current year is only 886 tons, with little improvement expected; mackerel quota will decrease, but Norwegian-Icelandic herring quota will rise slightly.

• Market outlook is positive for most products, with higher prices for frozen goods, but domestic costs and regulatory fees are rising sharply.

• Carbon and fishing fees are expected to double or triple, significantly impacting profitability.

• Major investments planned, including expansion and electrification of the Vestmannaeyjar plant and a new pelagic vessel.