Icelandic Salmon reports operating revenues of 103.5% increase from the previous year

Icelandic Salmon reports operating revenues of 103.5% increase from the previous year

Icelandic Salmon AS has reported operating revenues of EUR 72.09 for the first six months of 2022, representing a 103.5% increase from the previous year. Steady cost control and efficient production and high prices are the main reasons for this.

In addition, operational EBIT was EUR 23.04 million, up from EUR 3.13 million in the first half of 2021. Consequently, it saw an operational EBIT per kilo of EUR 3.64, up from an EBIT per kilo of EUR 0.65 for the same period in 2021. For the second quarter of 2022, the Group had an EBIT per kilo of EUR 4.57.

About these good results, Björn Hembre, CEO of Icelandic Salmon and Arnarlax, said: "We see a strong operational performance in the period. Where the Group benefited from low contract share of sales and strong market prices. The Group continues to show progress in biology with stable performance in Q2. Supporting cost levels compared to previous quarters."

"Growth plans are progressing as planned with the acquisition of the smolt plant Ísþór. Further expanding our smolt capacity and giving access to bigger smolt. Allowing for increased MAB utilization, reduced production time in the sea and thereby reduced biological risk," he added.

Moreover, the parent company of Arnarlax confirmed harvesting has increased by 31% from 4.8 thousand tonnes in the first half of 2021 to 6.3 thousand tonnes in the first half of 2022.

Plans for smolt production capacity expansion

The Group has two smolt facilities on the south coast and one in the Westfjords. Finally, a fourth one, Eldisstöðin Ísþór, with 50% ownership. Afterward, Icelandic Salmon reached an agreement to purchase the remaining shares in this smolt facility, providing the group with full ownership. So, the total smolt capacity by approximately 2.0 million smolts in 2023 will accelerate the Group's growth.

About Arnarlax

Arnarlax is first farming company in Iceland to use lumpfish to reduce lice levels and has been working with government agencies to minimize the risk of organic load affecting the seabed underneath. Currently, it holds licenses amounting to 25,200 tonnes of MAB in the Icelandic Westfjords.

The Group is is now building additional sites within its existing licences to improve the Group's MAB utilisations. First site has now been issued in Patreksfjörður and first output will be spring of 2024.

Furthermore, the application for a 10,000 tonnes farming license in Ísafjarðardjúp is ongoing, and a decision is still anticipated to be issued in 2022. On the other hand, the Group's application for additional biomass of 4,500 tonnes in Arnarfjörður has been delayed. Now, it is working on updating and resubmitting the application.

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