Odd Eliasen, Managing Director of Havsbrún. We are one person short this morning. Regin Jacobsen will not be joining us today. He had to cancel due to sudden illness in the family. He has chosen to stay at home. I can assure you Regin is fine, and the situation is also under control. That said, a short summary of the quarter. This quarter has been all-time high when it comes to revenues and also when it comes to Operational EBIT per kg. We had also an all-time high full year in 2020, with revenues exceeding DKK 7.1 billion and an Operational EBIT of DKK 1.7 billion for the year. Operational EBIT in the fourth quarter was DKK 376 million.
If we look at the operation, we have had similar levels as we had in the same quarter the year before. Similar volumes when it comes to harvest and also feed sales. However, higher volumes when it comes to sourcing of raw material, where we sourced 46,000 tons of material in the fourth quarter compared to 27,000 tons the year before. Cash flow from operations was positive with DKK 382 million, and we had positive margins in the quarter for all segments except the Scottish farming segment. The board of directors has proposed to the AGM that DKK 10 per share shall be paid as dividend, and the AGM is on the 28th of April. Global markets in the fourth quarters were strong.
We had significantly higher salmon prices than the same quarter last year, approximately 22% up and roughly 5% price increase compared to the third quarter. It was a strong demand and a slight decrease in global supply of salmon. Food inflation is probably also a cause of the higher prices. We know in Bakkafrost, for instance, we have secured higher contract prices for this year. The outlook on the pricing side looks also good for the remaining part of the year. If we look at harvest numbers, global harvest dropped around 2% and all producing regions had lower harvest weights this quarter compared to the quarter before. Overall, Europe had unchanged global harvest volumes, whereas in the Americas, the supply reduced with around 6%.
Norway was slight up with 0.8%. We did not see a significant effect from early tax-related harvest as we thought we might see in the fourth quarter. Harvest weights in Norway dropped around 5% to 4.2 kg . In Scotland, supply reduced 3%. There were significant biological challenges in Scotland, and harvest weights dropped 3% in Scotland. Iceland was the only region with a significant increase in production, 50% up. However, also there we have a reduction of 4% in harvest weights. The Faroes was down 11% and 3% down on harvest weights. Chile 3.8% down, also slightly lower harvest weights. Feed sales in Chile reduced by around 5% in this quarter.
In the U.S. and Canada, supply dropped with 18% and 16% respectively. Feed sales down 14%. Sales of salmon to Europe was stable in this quarter, but there was a strong growth in sales to the U.S. market. Chilean supply was a main contributor to the increased sale to Chile in this quarter. We also see growing volumes of fillets coming from Europe into the U.S. market. Of course, the U.S. consumers have benefited from a strong currency, so that helps on the sale to the U.S. market. Russia and Ukraine were down 46% on volumes due to the sanctions and war.
Japan and Chile and China also were lower on volumes in this quarter, whereas sales to the ASEAN markets were up with 9%. We then look at the financials for Bakkafrost, as mentioned, roughly DKK 1.9 billion in revenues in this quarter, an increase of 30% compared to the same quarter last year, and an increase of 214% when it comes to Operational EBIT to DKK 376 million. Fair value of our biomass was minus DKK 426 million and profit after tax minus DKK 154 million. Our margins improved across the line except the FOF segment, which had an EBITDA margin of 14%, down from 20.6%. Margins in the Faroese farming segment were NOK 27.56 per kg , and the VAP segment had DKK 16.67 in margin.
Farming margin in Scotland was -39.96 NOK, which is an improvement from the -50, almost 56 NOK that we had in the same quarter the year before. In Scotland, we had exceptional mortality costs in this quarter of NOK 81 million compared to NOK 179 million in the same quarter the year before. We also had exceptional costs associated with the recovery operation of the sunken feed barge that we have in Scotland, and we booked around NOK 26 million in costs in the fourth quarter associated with that. If we look at the Operational EBIT and adjusted earnings per share on a historical perspective, it's the best fourth quarter since 2019 for Bakkafrost. Adjusted earnings in this quarter were 3.42 NOK and 19.02 NOK for the whole year.
As mentioned, the board has proposed to the AGM that we pay DKK 10 in dividend, which is a bit higher than the dividend policy that says 30%-50% of adjusted earnings to be paid as dividends. The balance sheet, property plants and equipment increased with DKK 758 million in this quarter to roughly DKK 5.6 billion. Biological assets increased with DKK 490 million, whereof around DKK 1.3 billion are fair value adjustments. Inventory increased to almost DKK 1.1 billion. Cash and cash equivalents also increased with DKK 210 million and amounted to DKK 720 million by the end of the quarter. Equity ratio dropped to 62% from 64%. Cash flow from operations were positive with DKK 382 million, from investments minus DKK 570 million, and from financing DKK 339 million. During the quarter, we have increased our interest-bearing debt from DKK 2.4 billion to DKK 2.664 billion.
We had undrawn credit facilities of DKK 2.5 billion at the end of the quarter. We have exercised an extension option on our finance agreements so that we have extended that with one year. We still have five years ahead of us on our financial agreement for the bank finances. Some headlines related to ESG. In this quarter, in December, we finally received our new large 10,000 cu m wellboat in the Faroes. It arrived just after New Year. We had a large reception there. Bakkafossur is equipped with freshwater treatment technology. This is a new capability that we have not had in the Faroes and will have a positive impact on fish health and will help us to reduce the biological risk and performance even more in the Faroes.
It also will prepare us for offshore farming in the future due to the sheer size of the vessel. It is equipped with hybrid technology, which means that it is around 20% more fuel efficient compared to traditional vessels. We also had a supplier day in this quarter in the Faroes where we engaged with local suppliers. We have set ambitious targets to reduce our CO2 emissions and we cannot do that alone. Therefore we have engaged with local suppliers in the Faroes so that we can together build robust partnerships to reduce the carbon footprint.
The barge that I mentioned before, we have demonstrated in this quarter that we take our responsibility seriously when it comes to protecting the environment where we operate and make sure that we don't do any harm to that. In this quarter we have performed a complicated rescue operation to lift the feed barge that sunk after the Storm Arwen last winter. We ensure that no oil or feed escaped from the barge. It was lifted up, and we have removed the 3,000 tons of sludge and feed remains and brought that for biogas. I think it was yesterday, the barge was towed away again and will be refitted and repurposed. Odd Eliasen will go through the segment's performance.
Yeah. Good morning. I'll take you through the segment. First, we have a nice picture of the wellboat Bakkafossur together with our some of our service vessels in Faroes outside our factory in Glyvrar. Harvest volume in the Faroes came down 7%, down to 19,276 tons from 20,694. In Scotland, it was more or less the same, almost 5,200 tons compared with 5,122. The average weight in Faroe Islands dropped 4% from 4.9 to 4.7, and that was the opposite in Scotland. It increased from 3kg to 3.2 kg. Smolt transfer in Faroes came at 5 million smolt compared with 5.1, Q4 2021.
In Scotland, we had 3.5 million of smolt enter the sea compared with 4.2. The average weight of smolt in Faroe Islands was 304 g compared with 371. In Scotland, it increased from 105 up to 115. We had a very strong performance in the farming sector in Faroe Islands. The Operational EBIT went from DKK 282 up to DKK 380, an increase of 34%. While in Scotland, it was negative. Q4 2021, it was - DKK 214, and this Q4 2022, it was - DKK 149.
The Operational EBIT in Faroes came at 33% compared with 25% last year and in Scotland it went from -88% down to 50%. The operational revenue was more or less the same in Faroe Islands, DKK 1.139 billion compared with DKK 1.11 billion, and in Scotland increased from DKK 180 million up to DKK 292 million. We had improvements in both regions. In Faroes, we had an Operational EBIT of NOK 27.56, an increase of NOK 9.22 Norwegian kroner. In Scotland, it was negative in Q4 2021, NOK -55.95. And it was this quarter, Q4 2022, it was NOK 39.96.
Actually we had a very strong biological development in Faroe Islands. We had all-time low sea lice level in Faroes. We have improved our biological KPIs in H2 in Faroe Islands. That goes for biological FCR which for 2022 ended at 1.06. In Q4 the FCR was 1.03, that is quite good. We had a substantial increase in the TGC, we had very good growth. We had low mortality in the Faroe Islands also. Also, the economical FCR was decreasing meaning that the gap is closing in and the performing is better. We had a very strong biological improvements in Faroes.
Superior rates came also in higher in 2022. In Scotland, it was a bit more challenging due to biological challenges, and especially in October and November it was challenging, while December was more in line with our expectation. Even though we had low sea lice levels in Scotland, but that is due to freshwater treatment as well. We had also an increased harvest weight in Scotland. When we look at our numbers in Scotland, and historical numbers, we can see that the performance have not been that strong. We have had challenges with the mortality. But we have seen now and in 2020 that this proportion of mortality compared with our peers in Scotland, it has decreased.
Hopefully we are on the right path. We can also maybe explain it with this graph where we had our new freshwater dual treatment boat coming in action in September, October and November as well. We can see a drop in the exceptional mortalities in Q4 ending at the four weeks in December at a quite low level. We can see that this has continued here in the first 6 week in January as well. What that does this mean? On the upper graph here, we can see that typically in Q3 and also Q4, we have a low harvest weight.
Although this year in November and December, our harvest weight increased. We can see for the first six week in January and February, the harvest weight is now over 5 kg in Scotland. That is quite important for us. On the lower graph here, we harvested the same amount of fish, 570,000 fish in the first six week in 2022 versus 2023. That this year in 2023, it amounts for 1,000 ton more of volume, and that is due to the harvest weight was 5 kg compared with 3.3. If we then look at the value, the sales value, it has increased from DKK 110 million up to DKK 280 million in 2023.
There's a substantial difference when we can harvest the big fish, big and healthy fish compared with small fish. Another milestone is of course the freshwater and the big smolt. We are aiming for one summer cycles. One summer, one loch, one operator, and one generation. Meaning that we will aim for a production cycles that is 12 month in the loch. We have seen this materialized in the Faroes, and it's working quite good. We strongly believe that this is the right way to do it in Scotland. This is where we came from.
There were 11 hatcheries when we took over as a C in Scotland, there was a huge need of investment, as you can see. We have carried this on and invested a lot of money. Here we can see some pictures of our new hatchery in Applecross. We will within a short period transfer smolt from Applecross, two, our hatchery in Applecross. Approximately 125 g will be transferred into the new tanks, 60 m tanks. We will deliver the first large, high-quality smolt to 300 g in the end of Q2 to our farms in Scotland. This yeah, I will... This has been our journey in Faroe Islands.
As you can see, we also had an average weight of 100 g in the beginning, in 2011, where we ended at 350 g for 2020. This year we are aiming for 400 g in Faroe Islands due to we will have Glyvradal will be ready for production or is ready. We will have fish coming out from Glyvradal in next quarter. Norðtoftir has just delivered the first big smolt out of their new tanks. Viðareiði will also be ready. We believe that we will be around 400 g in the Faroe Islands in 2023. In Scotland, it will be back-end loaded.
We hope that we can increase our smolt weight from 110 g up to 175 g. Starting with the new delivery from Applecross in end of June, I would say, at 200 g-300 g. This will be a milestone for us, taking the production time down from 22 months down to hopefully 14 and then lower again when we can reach the 400 g in Scotland in two times, two years from now. Shortly, I will go through the Value-Added Products as well. We increased the volume from 6,600 up to 7,300, 231.
The revenue increased from DKK 359 up to DKK 443 in Q4 2022. The Operational EBIT increased from DKK 28 up to DKK 86. Was probably a bit back-end loaded with the new contract and new prices for the contracts. The EBIT per kg increased also from NOK 5.71 up to NOK 16.67. In the Faroe Islands, we 36% of the volume went for value-added products, and in Scotland, it was quite limited volumes that went for VAP. Fishmeal Oil and Feed, the FOF segment, also had a good year. We had quite a substantial increase in the revenue from DKK 1.66 billion up to DKK 2.43 billion.
We increased the EBITDA from DKK 81 up to DKK 110, even though the margin decreased from 21% to 14% in Q4 2022. We sold a lot of our goods and fishmeal out of Faroe Islands, 12,000 tons compared with 12,500 tons compared with 3,400 tons. If we look at the volume for the whole year, we exported more than half of our production of fishmeal mainly to our competitors in Norway, Scotland, and Denmark. We had good sources of raw material. It increased up to 46,000 tons. Mainly it was due to offcuts from the pelagic factories. Feed sales came in quite stable, 32,600 tons.
Our external sales increased with 300 tons, and that is, it's not a big volume, but that is due to we have a limitation of our production capacity in the feed plant, so mainly we are selling into Bakkafrost and Bakkafrost Scotland. That was my numbers.
Moving on to the outlook for 2023. According to the latest data from Kontali, we saw that volumes in Q4, the supply in Q4 was lower than originally expected. Especially in Norway, there was a drop in supply compared to what was expected. For 2023, we believe there will be a flat supply development in the first half of the year. Then in the second half of the year, more volumes will come, 4% to 5% increase in the second half of the year, which sums up to approximately 2% increase for the whole year. Supplies next year also looks to be tight. Overall, we have a tight market in front of us.
To sum up, global harvest in Q4 approximately 2% down, 2.23% supply increase for 2023 to be expected. We hold onto our volume guidance for 2023. We expect to harvest 98,000 tons for the group, 68,000 tons in the Faroes, and 30,000 tons in Scotland. We will release around 25.6 million smolt across the group, 16 million in the Faroes, and 9.6 million in Scotland. We have reduced the number of smolt in Scotland as we will focus more on stabilizing the operation. Therefore, the smolt numbers in Scotland are lower than they have been in the past. We have secured 23% of the volume on fixed price contracts, VAP contracts, that's mainly out of the Faroes.
Fishmeal and fish oil, our feed sales will be approximately 130,000 tons this year. The volumes of fishmeal and oil are expected to be on the same level this year as they were in 2022. We will have the Capital Markets Day on the sixth and seventh of June, this time in Scotland. We will look into the tanks that Odd showed you pictures of before and hopefully see for ourselves that we have finally some large smolt in Scotland. Thank you, I think we will open up for questions.
Thank you. Christian. You have reported now a few quarters with exceptional mortalities in Scotland and then the feed barge this quarter as well. January now looks a lot better with higher weights. Can you comment a little bit on what that means for your price premium in Scotland? Because Scottish salmon usually has a price premium. On your underlying cost development on fish into Q1 now in Scotland.
Having increased our average weight as Odd showed you on the comparison of the first 6 weeks this year compared to last year, clearly demonstrates the benefits of increasing the average weight. We tap into a higher price band in Scotland with larger fish. That is a significant improvement. In regards to the premium itself, we are integrating the brands. We are selling the fish as Bakkafrost fish now, both in Scotland and in the Faroes. It's fed with the same feed. We are operating more and more alike. Over time, the margins will also, we expect, develop more similar.
We have customers that are willing to switch one for the other, if we don't have the particular size that they require in a week and we can supply from the Faroes or vice versa, they are often willing to do that. In regards to costs, in general, there is an increased cost. We see that raw materials, for instance, for feed both, vegetables but also the marine content have increased in costs. You also saw the price development of fishmeal and fish oil, and of course that drives costs up in the industry as a whole. I would say if we look at especially the Faroese operations, most of the costs are relatively stable. However, the feed is increasing.
Henrik Knutsen, Carnegie. Could you comment on the lower average harvest weights in the Faroe Islands? Give some additional flavor to why it's decreasing year-over-year.
Odd, will you comment on that?
Yeah. We have been harvesting from different sites in the Faroes. In order to maximize and to match and to be ready to put fish out again, then we have harvested, you could say some of the sites out. On some of the cages there have been an increased level of lice, so we have just harvested due to this. But 0.2 kg, the It's comes and goes stuff. You will always have these fluctuations. It's I would say it's a kind of in the level what we can expect going forward.
Okay. Thank you very much.