August 14, 2024

Cermaq returns to profit in Q1 amid higher salmon prices

Salmon farming giant Cermaq has reported a profit of US$5.5 million for the three months ending June 30, 2024, representing a significant turnaround from the same period in 2023, when the company recorded a loss of US$20.8 million, Fish Farmer reported.

The return to profitability is attributed in part to a sharp increase in salmon prices during April and May, the initial months of the quarter. Prices soared to more than NOK 130 per kg (US$12.15) around the Easter period before receding to approximately NOK 80 per kg (US$7.48).

In addition to higher prices, Cermaq's profit was also bolstered by the acquisition of an unnamed affiliate. The details of this acquisition have not yet been disclosed.

Cermaq's operations span multiple regions, including British Columbia, Canada, where the company faces the challenge of transitioning away from open pen farming. The province has mandated the phasing out of open pen farming over the next five years. Salmon farming companies in British Columbia will need to decide whether to continue operations in the province or undertake substantial and costly reinvestment. Cermaq also operates in Norway and Chile.

Earlier this year, Cermaq announced a US$100 million investment in a new recirculating aquaculture system (RAS) farm in Chile. The company stated that the new farm will employ fully automated processes to produce more robust smolts, aiming to enhance performance during the seawater phase. The facility is expected to become operational in 2026.

Cermaq, which has its administrative headquarters in Norway, has been owned by the Japanese industrial giant Mitsubishi for the past decade.

-      Fish Farmer