Tassal Group Strategic Thoughts, page-748

Gee, that's some pretty nice prices the Norwegian's are getting from China at the moment. As I have been saying for a while now, the global salmon export price (Fishpool) is holding up remarkably well. Some of that is because of cost-price inflation, but a lot of that will flow to the bottom line of the exporters. Tassal won't be benefiting from such small volumes despite the high prices.

But. Bakkafrost and maybe Mowi would be benefiting the most? Bakkafrost has monster margins, best in the industry. Mowi has the volume they can push through. Check out this article in the Guardian - Bakkafrost has converted a Boeing 757 into a salmon-delivery truck. That is a sign of the high prices imho, as well as a lack of supply.
https://www.theguardian.com/environment/2022/jun/21/salmon-firm-plan-fly-fish-boeing-757-alarms-campaigners

Here's a guy who wrote up a bullcase for Bakkafrost. It's all pretty one dimensional, but some interesting stats in there.
https://dantescapital.substack.com/p/bakkafrost-bakka-the-hidden-gem-of

Still, both Bakka and Mowi are trading on high PEs (Bakka=28, Mowi=20), but a good earnings result will make that start looking reasonable. And that's what the market is expecting. Essentially, a big step up in revenue, EBITDA and earnings which remain elevated for the foreseeable future.


Personally, I think it's very hard to find good aquaculture companies in Australia outside of Tassal to invest in. Not trying to be parochial, I just think there's better quality fishing to be had elsewhere (pun completely intended). And if one is bullish on aquaculture, one should also look at the inputs into aquaculture (feed) - some good fishing to be had there too. DM's open on FinTwit for that conversation.