Icelandic Salmon leaves ‘challenging year’ behind

Icelandic Salmon is the sole owner of its subsidiary, Arnarlax, and in turn it is 51% owned by the Norwegian salmon giant SalMar.

It said that “with determination” during the final part of last year it managed to stabilise the biological conditions in the sea after having experienced significant challenges in the winter-spring 2023‑24, resulting in higher harvest volumes and weights, and good sea lice control.

To further strengthen its financial position, the group has agreed on an extension to its sustainability-linked financing agreement with DNB and Danske Bank. This agreement provides additional funding of €65 million euros (£53m) , increasing the total loan facility to €160 million (£132m).

The Q4 operating income was €49.9 million (£41m), compared to €51.6 million (£42.6m) in Q4 2023. The decline in revenues year-over-year was mainly driven by lower harvest volumes.

The company harvested 6,455 tonnes, 764 tonnes less than a year earlier.

Björn Hembre, CEO of Icelandic Salmon said: “Our team’s dedicated efforts have enabled us to end a challenging year on a positive note. We stabilized the biological situation, strengthened sea lice control, and achieved good growth in our biological assets.

With increased harvest volume and harvest weight, solid price achievement, and strong performance on smolt released into sea, we are on the right path.”

The group said it continues to work closely with the authorities to reinstate a license for 10,000 tonnes MAB of sterile salmon in Ísafjarðardjúp, which was revoked last autumn.

This happened because the Icelandic Food and Veterinary Authority (MAST) did not provide a necessary comprehensive, weighted assessment of the potential risk of the spread of fish diseases and parasites before the license was issued.

Efforts to establish larger sites for improved MAB (maximum allowed biomass) utilisation continue, with extension of several sites in Arnarfjörður under review.

The process has been delayed, and a final decision is not expected before the end of 2025. Additionally, a 4,500-tonne application in Arnarfjörður remains under review.

Icelandic Salmon says it continues to experience strong demand for its salmon. It achieved high prices for its products across key markets, where the North American and Asian market were particularly strong.