Proximar Seafood Q2 2025 slides: full capacity reached amid continued losses

Introduction & Market Context

Proximar Seafood AS (OB:PROXI) presented its Q2 and H1 2025 results on August 22, highlighting the company’s achievement of full production capacity at its land-based salmon facility in Japan. The Norwegian company, which operates a Recirculating Aquaculture System (RAS) facility near Mount Fuji, has positioned itself as a first-mover in local salmon production for the premium Japanese market.

Despite reaching this operational milestone, Proximar continues to face financial challenges, reporting a Q2 net loss of NOK 95.1 million. The company’s stock closed at NOK 1.15 on August 21, showing a modest 0.88% increase ahead of the presentation, but remains significantly below its 52-week high of NOK 4.18.

Quarterly Performance Highlights

Proximar reported harvesting 321 tonnes of Atlantic salmon in Q2 2025, with an impressive 99.2% classified as superior grade. The average harvested weight was approximately 2.3 kg (head-on-gutted), with the company achieving strong relative price performance despite challenging global salmon markets.

"We’ve reached a significant milestone with our facility finally back at full utilization," the company stated in its presentation. "This, combined with good fish health and a high survival rate of 99% excluding incidents, positions us well for future growth."

As shown in the following performance metrics:

The company achieved notable price realization of approximately NOK 75/kg on average, with larger fish (3kg+) commanding premium prices of around NOK 108/kg. This pricing strength comes despite softening global Atlantic salmon prices, highlighting Proximar’s competitive advantage in the Japanese market.

The company’s local production strategy continues to deliver transportation cost advantages over imported Norwegian salmon, as illustrated in this import cost analysis:

Detailed Financial Analysis

Proximar’s financial results for Q2 2025 reveal the ongoing challenges the company faces in achieving profitability. Revenue and other income reached NOK 38.1 million for the quarter, while adjusted EBITDA remained negative at NOK -27.7 million. The company reported earnings before taxes of NOK -94.2 million for Q2 and NOK -150.4 million for H1 2025.

The comprehensive financial summary shows:

The quarter’s sales amounted to approximately NOK 24 million, supplemented by insurance payouts of about NOK 14 million related to previous facility issues. The company expects additional insurance payouts of approximately NOK 11 million in Q3.

A mortality incident reported in May significantly impacted both operations and financial results, with NOK 11 million in related costs. This incident also delayed the company’s refinancing efforts, which remain in progress.

The detailed income statement provides further insight into the company’s financial position:

Strategic Initiatives & Competitive Position

Proximar has harvested more than 1,000 tonnes of high-quality salmon since beginning operations in September 2024, establishing its presence in the Japanese market. The company’s strategic location near Tokyo gives it access to a market of approximately 38 million people, with a long-term sales agreement with Marubeni Corporation providing premium pricing opportunities.

The company has gained significant media recognition in Japan, with coverage on national television highlighting its contribution to food security and local economic development. Proximar’s Fuji Atlantic Salmon was featured at Sushiro during the Osaka Expo, further enhancing brand visibility.

As demonstrated in the media coverage highlights:

To address its financial challenges, Proximar has outlined a comprehensive refinancing plan that includes:

• A fully underwritten NOK 150 million rights issue
• Amendments to convertible bonds
• A 12-month extension of the syndicated bank loan
• Extensions of other loans maturing in 2H 2025

The company has also secured NOK 60 million in additional working capital financing in the short term to support operations.

Forward-Looking Statements

Looking ahead, Proximar expects harvest weights and production to improve through the second half of 2025. The company is targeting a harvest of 900,000 to 1,000,000 fish in both 2025 and 2026, with gradually increasing harvest weights expected to translate into higher price achievements.

The outlook for 2025 emphasizes:

With the facility now at full capacity, Proximar aims to achieve full facility utilization by 2027. While short-term uncertainty related to growth rates remains, the company maintains that the fundamentals for good profitability are in place.

The company’s biological performance has improved, with fish health remaining good and water quality stable. All modules are now operating at full capacity, permitting 100% feeding after approximately 12 months of reduced feeding following turbidity issues and filter repairs.

Proximar’s current standing biomass of 1,401 tonnes represents a significant increase from previous quarters, indicating progress toward production targets despite the challenges faced earlier this year.

Full presentation:

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