Gold at the end of the rainbow? An Arctic Fish site in Iceland. The company made an operating loss in Q4 but NRS has high hopes for the operation. Photo: Arctic Fish.

Low spot price caused Q4 operating loss for Arctic Fish

Iceland salmon farmer Arctic Fish ehf, a company owned 50% by Norway Royal Salmon (NRS), harvested 2,988 tonnes (head on gutted) during the fourth quarter of 2020, resulting in a total harvest of 7,443 tonnes for 2020, NRS said in a market announcement. 

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Arctic Fish expects to harvest approximately 12,000 tonnes in 2021, 12,100 tonnes in 2022, and to gradually increase the harvest volumes to approximately 24,000 tonnes in 2025.

Total revenues were approximately €12 million, and the operational EBIT/kg (HOG) was € -0.41 for the fourth quarter, impacted negatively by the weak market prices for salmon throughout the quarter. The net interest-bearing debt was approximately €45m at the end of the fourth quarter.

€4.1 per kg ex-plant cost

Arctic Fish continued its solid performance on the operational cost level, achieving an ex-plant cost of €4.1 per kg (HOG), putting the company on-track for their medium-term target of €3.8 per kg (HOG). NRS considers the cost performance to support the long-term potential of Arctic Fish and Iceland as a salmon farming region.

As previously disclosed in a stock exchange announcement in November, Arctic Fish has engaged DNB Markets, Pareto Securities and Arion Bank as financial advisers to explore a potential listing on Euronext Growth (Oslo). It is still expected that a listing will take place within the first quarter of 2021.