Results for the first quarter of 2022

The first quarter of 2022 was special for Arctic Fish. The company suffered significant losses in the quarter as unforeseen discounts on salmon amounted to 2,512 tonnes at two locations in Dýrafjörður. The markets were strong for the products, so prices in the quarter were high, but the discounts affected the company’s price formation. The production cost excluding the incident was fairly stable or about ISK 680 per kg. The return price to Arctic Fish was around ISK 978 per kg and the margin from the fire was therefore ISK 298 per kg.

In the quarter, Arctic Fish sold 4,221 tonnes of products, which is 11% more than in the same period last year. Turnover more than doubled, but revenue in the quarter amounted to ISK 4.1 billion. The reductions led to a write-down of biomass and one-off costs amounting to ISK 1.9 billion. The operating result was therefore negative and a loss of ISK 180 million.

The company continued its investments in the quarter both in the expansion of the juvenile farm in Tálknafjörður and in the slaughterhouse that the company bought in Bolungarvík. ISK 1.4 billion was invested in the quarter and the company’s total assets amounted to ISK 21.2 billion at the end of the quarter. Of the company’s assets, investments in the hatchery, aquaculture equipment, pens, ships and barges amount to ISK 10.8 billion. The biomass is estimated at ISK 4.9 billion at the end of the period. The company’s equity position remained strong at the end of the quarter and there was also sufficient undrawn space on the company’s credit lines to support the company’s continued growth. The company also received a new license for a 4,000 tonne fire in Arnarfjörður.

The future prospects are good and the outlook for the markets is good. The company is still in a period of growth and despite the shocks in the first quarter, the company plans to sell about 10,600 tons of salmon a year. Considerable construction will take place in the coming months with the expansion of the hatchery, extensions to the salmon slaughterhouse in Bolungarvík, as well as the purchase of equipment for the slaughterhouse. The investments will enable the company to increase its competitiveness in the short and long term.

For further information, please contact Neil Shiran Þórisson, CFO of the company [email protected] , +354 8315300

Press release was obtained from the Arctic Fish website and translated into English