Reykjavík, Iceland-based salmon farmer Arctic Fish saw its Q4 2020 results hit by low prices and disrupted markets, mainly resulting from the ongoing coronavirus pandemic.
The company, which is 50 percent owned by Norway Royal Salmon (NRS), sold 3,000 metric tons (MT) of salmon in the final three months of last year, contributing to total annual sales of more than 7,400 MT. It also reported revenues of EUR 12 million (USD 14.5 million) for the fourth quarter, with its overall 2020 revenue amounting to EUR 36 million (USD 43.6 million).
As a result of the low market prices, during a period where they are usually at their peak, its Q4 operational earnings before interest and taxes (EBIT) actually resulted in a loss of EUR 0.41 (USD 0.50) per kilogram of production.
Meanwhile, Arctic Fish’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2020 was EUR 4.2 million (USD 5.1 million), while its net interest-bearing debt at the end of the year was around EUR 45 million (USD 54.5 million).
Delivering the results, the company said market conditions had been generally difficult and that market development had been worse than it expected at the beginning of last year. It highlighted that the COVID-19 crisis saw the continued closure of new markets in Asia, while the U.S. and key markets in Europe were not in balance.
Looking ahead, Arctic Fish expects to see positive market trends in the second half of 2021. It also anticipates reaching its production goal of about 12,000 MT this year, and seeing that double to more than 24,000 MT within four years through further farm expansion and new licenses.
The company is also in the middle of a listing process on the Norwegian stock market Euronext Growth.
DNB, Pareto Securities and Arion Bank are advising in the process, with the share listing expected to be completed in the first quarter of 2021.
Photo courtesy of Arctic Fish
