Norwegian salmon farmer Masoval on Tuesday announced operating profit for the second quarter of NOK 501 million (€50 million/$50 million) -- almost as much profit as the company earned over the past two years years combined.

The second quarter result was 71 percent higher than all of last year's earnings -- NOK 292 million (€29.2 million/$29.2 million) -- and more than double the 2020 figure, when the company earned NOK 227 million (€22.7 million/$22.7 million).

Revenue, meanwhile, reached NOK 934 million (€97.7 million/$97.6 million).

CEO Asle Ronning said operational and biological performance was good for the group in the quarter, and its focus on the spot market was a major benefit.

The lion's share of the group's earnings came from its operations in Trondelag in central Norway, where it turned in EBIT per kilo of NOK 62.5 (€6.20/$6.20). Its Vardtal Gruppen division, which Masoval acquired last year, posted EBIT per kilo of NOK 8.9 (€0.89/$0.89).

The strong result is largely because the company had only around 5 percent of its sales in the contract market, and thus benefited from the strong spot market.

Prices for salmon on the spot market were at record levels during the first part of the year, and only recently have begin to recede.

Masoval, which sells the fish through subsidiary Pure Norwegian Salmon, says it has no plans to change its spot-market focused strategy.

More than 20 analysts, investors and bankers turned up at Masoval's presentation at the Hotel Continental in central Oslo. Photo: Anders Furuset

The harvest volume in the quarter was 8,702 metric tons, more than twice the amount for the same quarter last year. The company lowered its estimate for how much it will harvest this year by 3,000 metric tons to 22,400 metric tons because of an outbreak of infectious salmon anemia (ISA) at the company’s Slettvika plant.

Shares in Masoval, which trade on the Oslo stock exchange, rose 2.1 percent on Tuesday morning to a price of NOK 43.9, which values ​​the company at around NOK 5.4 billion (€540 million/$540 million).