Nordlaks announces record revenues and profits

Nordlaks, the company behind the giant offshore platform Havfarm1, has reported results from another outstanding year.

The family-owned aquaculture business announced record revenues of NOK 4.45 billion (£345m), an increase of NOK 3.61bn (£280m) and a profit after tax of just over NOK 1 bn (£77m).

CEO Eirik Welde said the performance was largely due to high salmon prices, which rose by 40% to 50% last year and a weaker kroner against key trading currencies such as the euro and US dollar.

“We cannot expect such a figure in the future,” he cautioned.

Nordlaks also reported a significant increase in production. The slaughter volume rose by 10,000 tonnes reaching a total of 85,000 tonnes.

Welde praised the efforts of the employees for the positive development in production, adding that thanks to their skills, production should also rise this year.

But there were dark clouds on the horizon in the shape of the ground rent tax, voted through by the Norwegian parliament three months ago.

He said Nordlaks expected its tax level to increase by up to threefold as a result of the new levy. The company paid NOK 265m (£20m) in tax last year.

Just how and when the new tax should be paid was currently out for consultation, but there was a high risk of salmon companies having to pay tax on income they have not had.

He said: “Salmon is compared to petroleum, where price advice has been introduced, but salmon is not a uniform product like petroleum.

“For salmon, the price is based on many more factors, such as quality, size, certification and production area.”

Nordlaks’ floating fish farm Jostein Albert (Havfarm 1)