Proximar back on track after filter problems and mortality incident

The company reported that since the end of June, all modules at its plant in the shadow of Mount Fuji, Japan, have been in operation, and full utilisation has finally been restored.

"We are entering the second half of the year with all modules in operation and expect a gradual increase in growth rates and harvest weights. Mortality remains low, and we expect to be able to demonstrate the earnings potential in our model as production gradually gets back on track through the second half of 2025 and into 2026," wrote Proximar chief executive Joachim Nielsen in a quarterly report.

Proximar harvested 321 tonnes (head on gutted) in the second quarter of 2025, bringing the total harvested volume for the first half of the year up to 643 tonnes.

The superior share was 99.2%, with a survival rate (excluding events) of over 99%. Including the reported event in May, when around 170,000 fish died after circulation pumps stopped due to human error, the survival rate was 87.2%.

"To date, we have harvested a total of 1,000 tonnes of live fish, which demonstrates the facility's ability to produce high-quality Atlantic salmon," wrote Nielsen.

Results affected by biofilter events

The second quarter was affected by continued reduced feeding following issues with biofilters.

Revenue for the quarter was NOK 23.8 million (0 in Q2 2024), with non-adjusted EBITDA - a measure of operating profit and loss - of NOK -55.2m (-2.0). 

One-off costs and fair value adjustments affected operating profit by approximately NOK 28 million.

"Sales were negatively affected by lower achieved slaughter weights and thus lower price realisation, combined with some postponed slaughtering to increase slaughter weights."

For market-ready fish (+3 kg), the average price achieved was NOK 108 per kilo, which the company believes demonstrates the value advantage of local production in Japan.

"Fuji Atlantic salmon continues to achieve premium prices in this segment. The average price achieved for the quarter was NOK 75 per kilo," said Proximar.

Refinancing plan

Shortly after the end of the quarter, Proximar announced a comprehensive refinancing plan that will strengthen liquidity and provide increased financial flexibility.

The plan includes a guaranteed rights issue of NOK 150m, a voluntary conversion of outstanding convertible bonds into equity, and changes to the debt facilities, as communicated in a stock exchange announcement on July 9, 2025.

The plan extends maturities, reduces interest costs, and improves the terms of the shareholder loan.

"The proceeds will provide increased working capital, strengthen equity, refinance short-term debt and support operational flexibility to increase slaughter weights and thereby improve price realisation. NOK 60m in additional working capital financing has been secured in the short term until the issue is completed."

Outlook for 2025

With full production capacity restored and a strengthened financial position, the company expects gradually increased slaughter weights and better price realisation in the second half of the year.

The number of fish for harvest in 2025 is approximately 900,000, with the main uncertainty related to actual harvest weights as a direct result of the limited feeding.

"The priority is to return to the production plan for 2026, and the company will continue to assess how production can best be optimised with this as a focus," Proximar said in the stock exchange announcement.

Since July, more extensive sampling has been initiated to monitor growth and performance.

"More detailed guidance for 2025 and 2026 will be provided in connection with the prospectus for the issue, based on the results of this sampling program," the company said.