Pareto High Yield Daily-05/12/2026

Research evidence excerpt

Pareto High Yield Daily-05/12/2026

Pareto High Yield Daily

12 MAY 2026

Pelagia – Set for deleveraging in 2026

• Pelagia reported its Q1’26 financials this morning, with EBITDA of NOK 318m, broadly in line with Q1’25 despite revenues declining by

~NOK 700m Y/Y to NOK 3.1bn

• The revenue shortfall was primarily driven by lower volumes in the FOOD segment, while margin development was stronger than expected

following a more favorable product mix, with higher contributions from the FEED and HEALTH segments

• LTM EBITDA currently stands at ~NOK 850m, well below through the cycle levels, reflecting a lag effect on margins as Pelagia carried

high cost inventory into a weaker price environment – an effect estimated by Austevoll (50% owner) to have impacted EBITDA by NOK

300–400m

• As a result, net leverage currently stands at ~8.4x, which we view as temporarily elevated. Improving fishmeal and fish oil prices,

renegotiated salmon trimmings contracts, and seasonally normalized working capital effects is expected to support deleveraging from

Q2’26

• With through the cycle EBITDA estimated at NOK 1.3–1.5bn (vs ~NOK 850m LTM), leverage should normalize towards ~3.5–4.0x,

underpinning our constructive view on Pelagia’s credit profile. On this basis, we remain comfortable with Pelagia’s credit profile and see

pricing in the mid-300s (97%) for the bonds as fair

• Link to credit newsflash, link to Q1’26 report

Point Properties – Sale of property at a value of SEK 9m

• Point announced this morning that it has divested its property Malung-Sälen to Stadium Fastigheter AB. The purchase consideration is set

at SEK 9m, which is said to be in line with book values

• This is the second divestment in a short time from Point, following the divestment of properties in Karlskoga and Trelleborg.