Icelandic salmon farmer Ice Fish Farm reached an agreement for a major financing package to stimulate growth, after posting a sharp jump in fourth-quarter earnings and revenues.
The €156.2 million ($165 million) financing package, which is dependent on the company raising €45 million ($47 million) in new equity, will go toward new equipment, upgrades and investment in vessels and barges, in addition to refinancing salmon biomass.
The loan package will be provided by DNB, Nordea, Arion Banki and Landsbankinn. DNB Markets, Arion Banki and Nordea will lead the funding raise.
Ice Fish Farm is coming off strong fourth quarter earnings report. The company turned around production troubles from the year prior, and reported NOK 41 (€4/$4.30) EBIT per kilo in the fourth quarter,
The company's earnings rose to NOK 12.9 million, up from a razor-thin margin the year prior.
Revenues more than doubled over the same quarter to NOK 248 million (€22 million/$24 million).
On the year, Ice Fish Farm posted earnings of NOK 31.7 million, and doubled revenue to NOK 669.5 million.
The company harvested 3,150 metric tons during the quarter, a 72 percent increase from the 1,823 metric tons harvested during the same period in 2021.
It is aiming to produce 18,000 metric tons and harvest 6,000 metric tons head-on gutted salmon during 2023, and 30,000 metric tons by 2025.
In November, Ice Fish Farm's owner, Norway-based Masoval Eiendom, hired ABG Sundal Collier to explore the potential for bringing in a strategic partner to help accelerate the growth of its Icelandic salmon farmer Ice Fish Farm.
Masoval Eiendom said it has been receiving interest from several parties.