Lerøy to tighten up on cost control

The ambition, says CEO Henning Beltestad in the company’s annual report, is to increase revenue to NOK 50 billion (£4bn) by 2030, supported by ongoing operational improvements in farming.

The harvest volume target within the next four years is 220,000 tons GWT along with continued expansion, including third-party sourced volumes, in the VAPS&D segment.

The Group has set an ambitious target of achieving NOK 2 billion in Operational EBIT in the VAPS&D segment by the end of this decade.

He said: “This growth is to be realized in parallel with significant cost reductions. Through targeted initiatives to be executed in 2026, the group aims to reduce its cost base by NOK 1 billion, assuming all other factors remain unchanged.

“It is important to note, however, that the impact of these cost-cutting measures—particularly within farming—will not be reflected in the profit and loss statement until late 2026 and into 2027.

“Lerøy has made substantial investments in new technology for the sea-based production phase. Shielding technology, including submersible and semi-closed cages, is now in use at Lerøy Sjøtroll and Lerøy Midt, while Lerøy Aurora and Lerøy Midt are utilising laser technology.”

These innovations, he said, have already resulted in a reduction in the number of sea lice treatments compared to traditional open-pen farming.

The experience gained so far gives the company confidence that these technologies will deliver significant improvements in biological performance.

However, there was still room for further optimisation, particularly regarding feed conversion efficiency in submersible pens.

As previously mentioned, cod quotas have been drastically reduced in recent years, resulting in a temporarily and significantly weakened operating basis for the group’s whitefish activities.

Against this backdrop, the positive development seen in 2025 is encouraging. For 2026, further quota reductions are expected: cod -16%, saithe also known as coley) north -19%, saithe south -27%, while the haddock quota is anticipated to increase by 18%.