Norwegian salmon stocks rose on Friday after a broad political consensus was reached to postpone major changes to the licensing system for several years. This was reported by Bloomberg News.
Salmar climbed 2.4 percent, Grieg Seafood rose 1.3 percent, Mowi increased 2.1 percent, and Lerøy Seafood was up 3.1 percent. According to Pareto Securities, the agreement means that the current rules with the so-called "traffic light system" will remain in place for two to four years, while the authorities gather more data to design a new regulatory framework. "We welcome the initiative for a fact-based debate and believe that reduced regulatory pressure should be positive for the sector's valuation," writes analyst Henrik Longva Knutsen.
The Oslo Stock Exchange is closed today, Monday.
Norway's traffic light system for the salmon sector is a government policy tool that regulates the growth of offshore salmon farming based on environmental impact, particularly the impact on wild salmon stocks through salmon lice. The farming coast is divided into different areas, marked green, yellow, or red, depending on the environmental impact of salmon farming.
The system was introduced in 2017 and is updated every two years. It has been criticized by the industry for being too blunt and unpredictable.
Grieg Seafood ASA is a Norway-based salmon farming company, which specializes in fresh Atlantic salmon. The Company's facilities are located in Finnmark and Rogaland in Norway, and British Columbia and Newfoundland in Canada. Finnmark operates a hatchery in Lebesby, fish farms in Alta, Loppa, Nordkapp and Hammerfest, a slaughterhouse at Simanes in Alta, a post-smolt plant in Hasvik and a regional office in Kunnskapsparken in the center of Alta. Rogaland operates two hatcheries in Bokn, fish farms in Stavanger, Sandnes, Bokn, Hjelmeland and Kvitsoy, brood fish production in Suldal, a slaughterhouse on Sjernaroy and a regional office on Judaberg. British Columbia operates 22 farms off Vancouver Island and the Sunshine Coast.
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
