North Landing, which focuses on the east coast of the US, has a sales office, handling and processing facilities in New Jersey and the acquisition gives the Faroese firm better access to the US market.
The news comes in Bakkafrost’s Q2 report, which also revealed the group achieved a total operating EBIT of DKK 407.9 million, harvesting 12,900 tonnes of salmon. The group’s farming segment made an operational EBIT of DKK 393.2 million. The salmon spot prices increased in Q2 2018, compared to the previous quarter. The price increase had a positive effect on the operational EBIT in the farming segment. Bakkafrost has reduced its guidance for volumes for 2018 by 2,000 tonnes gutted weight, from 51,000 tonnes to 49,000 tonnes gutted weight.
Commenting on the result, CEO Regin Jacobsen said: "The salmon price was good in the second quarter, and although the price fell throughout the quarter, the result for Bakkafrost was good for the second quarter. Bakkafrost has in recent years made large investments to develop the company and now we are pleased to announce a new investment plan for the period from 2018 to 2022. Bakkafrost expects to make investments of around DKK 3 billion during this period. The salmon farming business has developed dramatically since it started in the Faroe Islands. We foresee great opportunities for development in the future and to be able to transfer these opportunities into realities, large investments are needed."
The report adds that the latest update from Kontali Analyse estimates that the global supply of Atlantic salmon increased around 8 percent in Q2 2018, compared to Q2 2017. This is due to unexpected increases in Norway and Chile, and the global harvest growth is expected to be around 6-8 percent in 2018.