Here are the most profitable salmon farmers in Norway

Aslak Berge

Three companies recorded EBIT margins over 50 percent in 2017.

Korshavn in Lyngdal Municipality is about the furthest south you can go within Norway, a short boat ride northwest of Lindesnes Lighthouse. Here, in Skagerak, is where you will find Norway’s most profitable farmed fish producer, Korshavn Havbruk.

Last year the EBIT margin topping the list, ended up at an astronomical 80.2 percent.

Joint operation
According to the company’s annual report, Korshavn Havbruk has a joint operation with Hellesund Fiskeoppdrett.

“The new cooperation provides greater and more uniform production through fish being released to Lyngdal (Korshavn) cages in even-numbered years and to Farsund (Hellesund) cages in odd-numbered years,” the company stated.

While Korshavn Havbruk topped the profitability statistics this year, Hellesund Fiskeoppdrett landed at the very bottom, a result that can be naturally explained by the difference in numbers of fish released into cages by these companies.

In comparison in 2016, Korshavn Havbruk’s EBIT margin was a sober 22.9 percent – as opposed to 69.2 percent for Hellesund Fiskeoppdrett in the same year.

Three over 50
SalmonBusiness has this year – as we did last year – examined the 2017 accounts of 67 salmon production companies, who have now delivered their annual reports to the Brønnøysund Register Centre.

Here it emerged that only one of these companies, the aforementioned Hellesund Fiskeoppdrett, ran at a loss in 2017. With an operating profit of NOK 2.3 million, the company’s profit margin ended down at minus ten percent.

It also revealed that three companies achieved profit margins over 50 percent. These were, the aforementioned Korshavn Havbruk, Øylaks and Finnøy Fisk.

Small is beautiful
On average, the country’s 20 largest aquaculture companies achieved a EBIT margin of 25 percent last year. Among these, market leader Marine Harvest achieved a modest 13.4 percent.

The smallest producers continue to be the most profitable here in Norway. Noticeably, the next 47 companies on the profit margin list averaged 32.7 percent.