August 25, 2025

Proximar Seafood sees heavy operating loss for Q2 2025

Proximar Seafood has reported a significant operating loss for the second quarter of 2025, as the land-based salmon farmer's results were heavily impacted by production challenges that led to lower-than-expected harvest weights.

The company generated its first significant revenues during the period but faced setbacks from biofilter incidents that constrained fish feeding and growth.

For the three months ending June 30, the company posted revenues of kr23.8 million (US$2.2 million), with first-half revenues totalling kr68.3 million (US$6.2 million). However, this was overshadowed by an earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of kr55.2 million (US$5 million) for the quarter.

The company stated that one-time effects and fair value adjustments impacted the operating result by approximately kr28 million (US$2.5 million). The results were also hit by lower average price achievement due to the smaller harvest weights.

The operational issues meant that while market-size fish of over three kilogrammes commanded a premium price of kr108 (US$9.8) per kilogramme, the overall average price for the 321 tonnes harvested in the quarter was just kr75 (US$6.8) per kilogramme. In a positive development, the company noted that full production capacity was restored in July.

Chief executive officer Joachim Nielsen said: "We entered the second half with all modules in operation and expect growth rates and harvest weights to gradually increase." The company expects to provide more detailed guidance for 2025 and 2026 soon.

To bolster its financial position, Proximar has announced a comprehensive refinancing plan, including a fully underwritten kr150 million (US$13.6 million) rights issue, a voluntary conversion of its outstanding convertible bond to equity, and amendments to its debt facilities.

- Baird Maritime