Faroese salmon, fishmeal and processing giant Bakkafrost is predicting an improvement in costs in the second quarter, driven by biological improvements, according to the company's Capital Market presentation last week.

"All the investments done in recent years have increased capacity, and as long as we don't fully make use of the capacity, fixed costs will increase," CEO Regin Jacobsen said.

Earlier in May, the company reported a tough first quarter for costs, with its operating earnings before interest and taxation (EBIT) margin falling to 30 percent compared to 34 percent in the same period last year.