Ice Fish Farm posts loss for Q2
Ice Fish Farm, the Icelandic salmon company, has reported a second quarter operating loss of NOK 86 million (£7.2m) following a write-down of biomass.
This compares to a profit of NOK 15m (£1.25m) for the corresponding period last year.
It has been a difficult period for the company which was hit by an ISA (infectious salmon anaemia) outbreak in May resulting in the loss of harvest volume which it warned would impact on results for the remainder of the year, and possibly into 2023.
Also in May, the Ice Fish Farm board approved a draft merger to take over Laxar Fiskeldi in Iceland, giving the operation a much increased biomass and create a more efficient and environmentally aware business. Both operations, which are physically close to each other, are owned by the Norwegian parent Måsøval.
Turnover for the quarter emerged at NOK 87m (£7.3m), a rise of NOK 8m (£660,000) on last year. The Q2 harvest was slightly up at 1,117 tonnes.
Ice Fish Farm said the reason for the losses was a write down of biomass worth NOK 104m (around £9m).
On the upside the company now has a licence to produce 43,800 tonnes and has applied for an additional 10,000 tonnes, which should be allocated next summer.
The Q2 report said Ice Fish Farm is in talks with selected financial institutions for financing solutions, including the refinancing of all interest-bearing debt.
Each company in the group is financed separately and the aim is to simplify the loan structure and finance all debt at group level. The aim is to complete the process before the end of the year.