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Investing.com -- SalMar ASA (OL:SALM) on Thursday reported a steep drop in second-quarter profitability as weaker salmon prices sharply reduced margins despite higher harvest volumes.
Operational EBIT per kilogram fell to NOK 8.1 in the quarter, down from NOK 30.7 in the same period a year earlier. Group operational EBIT declined to NOK 524 million from NOK 1.38 billion.
Operating revenues rose to NOK 6.18 billion, compared with NOK 5.84 billion a year earlier. Harvest volumes increased to 64,500 tons from 44,800 tons.
Profit before tax dropped to NOK 190 million from NOK 1.48 billion in the same period last year. Net profit for the period was NOK 146 million, down from NOK 900 million. Earnings per share stood at NOK 1.9, compared with NOK 6.3 a year earlier.
The Norway-based company raised its full-year harvest guidance to 298,200 tons, up 4,000 tons from previous estimates. Guidance for 2025 includes 262,000 tons in Norway, 7,200 tons in SalMar Ocean, 13,000 tons in Iceland and 32,000 tons in Scotland on a 100% basis.
The average salmon price was NOK 73.1 per kilogram in the quarter, compared with NOK 110.9 in the second quarter of 2024.
Net interest expenses increased to NOK 345 million, a significant rise from NOK 239 million.
The equity ratio was 32.8% at the end of the quarter, compared with 38% a year earlier. Net interest-bearing debt, including lease liabilities, rose to NOK 21.72 billion from NOK 18.65 billion.
Cash flow from operations was NOK 1.32 billion, compared with NOK 1.39 billion in the same period of 2024. The board approved a dividend of NOK 22 per share in June, which was paid in July.
In Norway, biological performance was strong in the north, where EBIT per kilogram reached NOK 14, down from NOK 29.9 last year, while downgrades reduced price achievement in Central Norway, where EBIT per kilogram fell to NOK 0.2 from NOK 41.
The Sales and Industry segment delivered an operational EBIT of NOK 448 million, compared with a loss of NOK 90 million a year earlier, supported by contracts and higher volumes.
Icelandic Salmon posted a loss of NOK 97 million, compared with a loss of NOK 43 million in 2024, as high costs and lower prices continued to weigh on results.
SalMar Ocean booked a loss of NOK 75 million after completing harvests from its two offshore units.
Scottish Sea Farms, the group’s joint venture, harvested 11,600 tons in the quarter, compared with 12,200 tons a year earlier.
The unit reported an operational EBIT of negative NOK 28 million, down from NOK 234 million last year.
Norway exported 400,400 tons of salmon in the quarter, up 25% from a year earlier, while the value of exports held steady at NOK 28.7 billion.
SalMar completed a merger with Wilsgård in August, expanding its presence in Northern Norway, and issued two new green bonds totaling NOK 2 billion in the same month.