Great uncertainty about continued operations

The future of a Norwegian smolt producer is in doubt after making consecutive annual losses. Nordnorsk Smolt is owned by salmon giants SalMar and Cermaq, which are now considering several options for the company's future, including liquidation.

The smolt producer in Hasvik municipality had sales of NOK 51.2 million in 2025, down from NOK 63.9 million the previous year.

Although expenses were also reduced, the operating profit ended at NOK -6.3 million (£-502,000), compared to a deficit of NOK -2.9m in 2024 and an annual profit of NOK -12.7m.

Has used up equity

The board of directors states in the annual accounts that there is significant uncertainty about continuing operations, even though the accounts have been prepared on a going concern basis.

The background is that the equity has been lost, while it has not yet been clarified how the company will be capitalised or what ownership structure it will have in the future.

The company entered 2025 with positive equity of NOK 10.5m, but by the end of the year it had been reduced to NOK -2.3m.

The board points out that owners SalMar and Cermaq are financially solid and have the ability to provide the necessary capital, but that this had not been done when the annual accounts were presented.

The uncertainty is also related to Cermaq taking over Grieg Seafood Finnmark's operations on December 29, 2025, and thus becoming the new owner of the former Grieg share in Nordnorsk Smolt.

Four possible outcomes

According to the board, the owners have been working on several possible solutions for the company throughout the first half of 2026.

The options being considered are:

• that Cermaq buys out SalMar,

• that SalMar buys out Cermaq,

• that the owners continue together and contribute new capital,

• or that the business is wound up and the assets are realised.

At the time of the annual accounts, it was not clear whether any of the options would be implemented.

The board emphasises that the uncertainty primarily concerns future ownership structure and capitalisation, and not ongoing operations in isolation.

The company is still dependent on financing from its owners until a final solution is in place. The board expects this to be clarified during the second half of 2026, and considers liquidity to be sufficient to cover obligations throughout the year.