Kverva, Norway-based aquaculture company Icelandic Salmon AS, which owns producer Arnarlax and other subsidiaries, and part of the SalMar group, reported operating revenues of almost EUR 72.1 million (USD 71.3 million) for the first half of 2022, a 103.5 percent year-over-year increase.
The company said increased market prices for salmon in the period contributed to its solid H1 2022 results, alongside steady cost control and efficient production.
Icelandic Salmon’s operational earnings before interest and taxes (EBIT) for the six-month period exceeded EUR 23 million (USD 22.7 million), up from EUR 3.1 million (USD 3 million) in H1 2021. This led to an operational EBIT-per-kilogram of EUR 3.64 (USD 3.60), up from EUR 0.65 (USD 0.64) previously.
Icelandic Salmon achieved an EBIT-per-kilogram of EUR 4.57 (USD 4.52) in Q2 2022.
“We see a strong operational performance in the period, where the group benefited of low contract share of sales and strong market prices. The group continues to show progress in the biology with stable performance in Q2, supporting cost levels compared to previous quarters,” Icelandic Salmon and Arnarlax CEO Björn Hembre said. “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 maximum allowed biomass utilization, reduced production time in sea, and thereby reduced biological risk.”
The company's H1 2022 overall harvest increased 31 percent year-on-year to 6,300 metric tons (MT).
According to the report, one of the two artic char facilities that Icelandic Salmon acquired in 2021 is now producing smolt, and the other’s conversion is ongoing. The company expects full operation at both before the middle of next year.
Along with two smolt facilities on Iceland's south coast and one in the Westfjords, the group has operated a fourth facility, Eldisstöðin Ísþór, through a 50 percent ownership. In the period, it reached an agreement to take full ownership, with Icelandic competition authorities formally approving the transaction in August 2022.
The company projects the acquisition will increase its total smolt capacity by approximately 2 million in 2023. This in turn, will further support enhanced utilization of current licenses and prepare for new areas and licenses, the report said.
Also in the first half of 2022, Icelandic Salmon launched a new brand, IceFjord, together with a U.S. customer.
Arnarlax currently holds licenses amounting to 25,200 MT of MAB in the Icelandic Westfjords and is now building additional sites within its existing licences.
Its application for a 10,000-MT farming license in Ísafjarðardjúp is ongoing, and the company said it anticipates a decision later in 2022. The company also notified its stockholders its application for additional biomass of 4,500 MT in Arnarfjörður has been delayed, and the group is working on updating and resubmitting the request.
Photo courtesy of Gestur Gislason/Shutterstock
