Russian Aquaculture boasts H1 €2.8 EBIT/kg

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Pursuing long-term strategy to create “one of the world’s largest vertically integrated players in the aquaculture segment.”

Russian Aquaculture, which farms Atlantic salmon in the Barents Sea, posted its half-year results.

Revenue increased by 8 per-cent to EUR 60 million from EUR 55 million. Operating profit slightly increased 2 per-cent from EUR 25.3 million to EUR 26 million.

Russian Aquaculture said it remains “one of the best-performing companies in the world” with an EBIT/kg of EUR 2.8 as of the end of 1H.

The net loss (from last year’s EUR 11.4 million to this period’s EUR 4.5 million) in the reporting period was the result of the revaluation of biological assets. As of 30 June, some fish had not reached marketable weight due to low water temperatures in 1H 2020. It added that July and August were favourable in terms of temperature conditions, which resulted in strong fish growth, and that this partially offset the earlier lag.

The salmon farmer, which also produces trout in the lakes of the Republic of Karelia, said it faced two serious challenges in the first half of the year: market disruptions amid the pandemic and unfavourable climatic conditions.

“Thanks to dedicated teamwork and a rapid response to changes in the market, however, we delivered strong operating results, maintained business stability and demonstrated solid growth in revenue, adjusted EBITDA and cash flow,” it wrote.

The total potential production volume for its for 36 sites are around 50,000 tonnes of salmonids.