Highlights in Q2, 2019 1 was we reached a higher EBIT than in previous quarter around NOK 13.2. 2019 generation is giving good results and good cost quality. We harvested 10.90 tonnes compared to 3.40 tonnes the previous year. Our super smog station in Kokos gas started the operation in July and we are extremely proud of and seeing the smoth swimming in the new tax. You can see on the right side the picture of the station that is just about to be closed off the house.
And we have plans we can deliver smolts out of the copper scale in Q3 and that will be big and strong for the winter. Then the competition authority in Iceland approved most of all, Airtom as a new major owner in ICES Farm and we are exploring now strategic opportunities between ICES Farm and Lexar which most of all is also maturity only for the companies to go forward. We have license update of Stollerfjaller of application of 7,000 tonne and they approved our environmental report planning agency and we expect to have the license in Q3. Sales further 10,000 tonne license is following in Q4 2021 and then high metal part is finished and being gone through in the planning agency. And this is on track compared to what we announced in previous quarter.
And hopefully we will have success and get the licenses and be able to use them next spring. The license update for Periford was also approved. Now we have 4 farming areas instead of 3 and it was better utilization of the licenses. Big movements upwards on land based farming for our smog received a 400 tonne license for copper spare and we have an application for up to 2,700 tonnes that can be used for Phase 2 in copper steel. We got an increased license in Eastor, our small station in Solosha was previously 600 tonnes and now we are moving up to 1800 tonnes.
And this is in line with the strategy in Eastor to grow bigger smocks and have them go to the sea bigger and also from Cobeska. So we can decrease the production in sea and short in the period. Iceland in total, just a quick summary. We are located around Iceland at the photo ship in Reykjavik and east over small stations across Reykjavik and then on the east side, right side we have the Fjords and then on the north side we have Reebels and Kokosir. And the Icelandic total has a capacity of around 132,000 tonnes.
East Firth is approximately half of that. We also have 2 thirds in process that it should be given capacity numbers. But we estimate that's around 20,000 tonne. And then Easter in total can reach around 82,000 tonne of Mebi per ounce. This could have even more production.
For example, Faroe Islands has shown great results over the years and improved volume around 81,000 tonne. And since we are close to USA, you can see on the bottom left that we have now shipping line going straight from Iceland to U. S. And giving us 1 third of the cost versus airfreight and 95% lower CO2. So finally we have some advantages on Norway.
Yes. Good afternoon, everyone. My name is Robert. I'm the CFO of Isofisk Farm. I'm going to take a quick overview of the financial performance of the Q2 this year.
Here you see the financial summary. Like we mentioned, the harvest volume has increased compared to last year. Total harvested amount was 10.90 tonnes this quarter compared to NOK340 tonnes of salmon last year. The EBIT of the group is also going up and revenues as well. But the EBIT per kilo for salmon is decreasing due to lower prices and unfavorable currency involvement.
Here you can see the consolidated income statement. The revenues are increasing due to almost tripled harvested volume compared to last year. The cost of materials It's similar to last year. It's obviously increasing but the cost of material per kilo is similar. Employment benefit expenses is decreasing per kilo in the amount of or 36%.
Other expenses are also decreasing per kilo. The depreciation is similar to last year despite heavy investment in the group. This is due to the fact that most of the investment is in relation to our small station in Koberstjeff, which did not start operation until July this year. So no depreciation is calculated or reported before that period. Now the fair value adjustment of PMS is NOK19.2 million in the first half of this year due to increased harvest, harvested salmon or harvest GMS.
Yes. And the EBITDA margin is similar compared to last year, 33% compared to 38%. Yes. Now if we go over to the balance sheet, here is the consolidated statement of financial position balance sheet. Yes, the largest Changes in the property and plant and equipment on the non current asset side of the balance sheet.
This is due to heavy investment in our super small station in Kokoskar and the net interest bearing debt is also affected by this since we have financed this investment with the loans. The cash flow statement shows So it's the same story. The investing activities of around NOK175 1,000,000 for the first half of twenty twenty one, mainly due to our small station coppers here. And finally here you can see the expansion plan, current expansion plan which is for the next 3 years. The total investment in this new in this according to this plan amounts to around NOK 200,000,000.
We have already invested NOK175,000,000 this year. The remainder could increase due to the fact that we are not including Phases 2, 3 and 4 in the small station. Phase 1 was finalized in July, but NOK 2, NOK 3 and 4 have not been included. Now ISIS Pharma has in operation 4 sites in the sea. Each size has the capacity of 14 cases and we are planning to build 2 new sites in 20 22 and NOK 1 in 2023.
Below you can see the pictures from our small station in Cobosphere which is already producing 4,000,000 freehand grams mott for 2022 and currently holding NOK 4,800,000 smalls. So
yes. Yes and that picture Refrain on it was taken in May and the picture below was taken in end of August. So it's been a heavy duty work summer for our guys and the people around Koppers here building up our facility. And we have a growth plan and a premium built up plan and we are on track there. Major developments in Istor we got this bigger license.
And then we are now installing also heat exchangers and the new house over existing tax or secured stable water flow for the salmon and also more after working conditions for people. We're building 2,000 cubic meter tax that will be ready in Q4. So we are expecting from Eastor around NOK 5,000,000 smalls that dies receives half of around NOK 2,500,000. And since we have this bigger tax, we will have bigger smolts for next spring. And Rivos, Koperskyr, we've shown you pictures there and this is a great success.
We have already started filling up the house and has almost 5,000,000 smots in production and we will receive some smots this autumn from Kokesky in the first half as we've been shipping smalls from Ribos down to Kokesky. And current Phase 1 is estimated that we can reach around 4,000,000 smots out of Krogersk. And with further steps going into Phase 2, We cannot add on more houses and increase the volume. And first house is the most expensive. 2nd houses should be lower cost as we can utilize the service houses and various entities in the construction.
And over you our value chain, there are big improvements and we've gone over with a small production and we see that for Q2, we will have more fish and bigger. And copper still is delivering faster than expected. And for salmon farming, Q2 was difficult, not as difficult as Q1 but it was certainly colder than normal and therefore the growth was slower. We are seeing now big changes in middle of August or beginning of August. We had excellent weather, sun and like a heat wave, it's gone up to around 20 to 30 degrees in the East Coast later part of the summer and this has given good better results in the sea.
And for example in our normal production curve 75% of our production is happening from August, Julia, July, August until December. So these are the months that we produce 75% of our volume. And that is a good sign that the temperature is up and the cases are loaded with salmon and been spread also quite well. So we have a good low density so the fish can grow faster. And clean nets and having top notch ability to grow.
And we have put up 2 new sites, 1 in Foskoser and 1 Birafir. Both sites have strong big hedges and new barges that are hybrid solutions to lower the CO2 and we're extremely proud of is equipment and they have shown that the better equipment is the better production is more safe during the winter time. And then processing and distribution, we are working on the box factory and still expect to have first cases boxes for salmon produced in Q1, 'twenty two. And processing has been stable and distribution. We have successful shipments direct to USA and saving cost and also lower CO2.
And the product is fantastic even though it takes a little bit longer failure to transport this since we have the super cooling equipment and extremely high quality Then customer we are working heavily with our sales partners in Seaport and Uthco to got to know more customers and build up markets both in Asia, USA and Europe. And we are seeing high interest for our southern and people on the have test and get to know our beautiful dark summer. We have 1st organic salmon coming into the sea, this autumn and also Sterevar and these will be highly popular products from us as they are unique being organic from Iceland and also sterile that means that this is lower risk for wild salmon and potentially more growth and good summer. The license update gone through that a little bit before. The major development there is we have been approved as license in Stuttgartner and so we hope that we get the license quite soon and also from sales where the report has been finalized and otherwise we are on track on receiving licenses for future growth.
And outlook, we see global harvest increased only 1% in the first half of this year and there is a strong demand from USA both retail and Horeca is opening up. And that means that the market has been built during this COVID season that retailers learned to buy fish in the store and cook it at all. And then Oraka is also opening up. So this is very positive for the market. Majority of the harvest for 'twenty one is already contracted and we have good opportunity globally for premium sulphur.
And the harvest has been adjusted to the conditions that we have faced in the last 6 months and lower growth and in harvesting smaller fish than anticipated. And even though the fish is smaller we are receiving premium pricing. And now we have relaxed harvest, lower harvest for August and September. This is the main season for growing and we can compensate hopefully going forward. But we are putting down the outlook as we yes, we will get this one and not overestimate.
And we need even for the plans in 2022 and 2023, we have within the program colder temperatures. And so if we see that seasons will be better and we can expect more volume going forward. And the cost level is expected to go down with more production. Finance is going well with finance and secured loans for our investments and that allows us to continue our growth plan. We are in talk with the Luxor as strategic possibilities there and synergies that we would gain with the controlling area of East Church.
And our mantra sustainability, responsible farming is always number 1. To have a world class team, we have been grateful of getting new team members on the team both on land and land based facilities and on sea and maybe training them and getting to know more people and building up with more option. Investment in sustainable production emphasizes on lowering CO2 and our certificates and surveillance of the surroundings that we have good facilities to produce and therefore we can produce organic and at various types of salons. And we are always keeping Good eye on what's happening around us and for example this year we have ordered few barges for next year that are stronger and more durable and whether some elements that can be experienced in our peers. Currently we have also 1 concrete parts coming over which is shown now in Trantend.
Can go and see the new parts. It will be shipped over to Iceland soon after the show and we can start using it to feed our spot that is coming in this autumn. So this was outlook and our presentation. Do you have questions? Please fire away.
Okay. So here is a question from Perje. Can you elaborate on the strategic discussions with Luxa? What are the main synergies you see and how will you make sure to protect the interest of the minority shareholders with Mosul having a seat on both sides of the table.
Yes, this is a fantastic opportunity to have a full control of these spurts and many synergies are therefore possible even going deeper in planning and and organizing and quality systems and making sure we are producing good and in total both parties will gain on that going forward. To protect the minority and also the majority is responsibility and that is being worked on and you see that We have 2 good companies that can be even faster together. And It's going to be interesting and fantastic journey when it goes through if we reach synergies and possible outcome.
Okay. And here's the question. Here we have a question from Eden. Please explain the difference in growth seen between the West Coast farmers and Ice Swiss farm where the West Coast farmers report good growth in sea while Ice reports lower growth than expected.
Yes, there is a difference on the heat in the sea between Easter and Westers. Normal year we have a higher temperature during winter than West Perch. And in the summer they have higher temperatures than Easter. So on average this outcome that it's good growth in the winter and in the east. But this year we had lower temperature than normal and therefore they were not experiencing good growth during this metric.
So that explains pretty much the difference on the east and west. But there is yes, lower, normally it's lower temperature in the last year and higher in the East.
And Eiran asks also what is the expected time in C for the 300 grams lost from COGS.
Yes, we have already delivered from It was this year around NOK 600 and also NOK 300 and we aim to have around NOK 200 in Q3 going out. And next year we will have this up to yes, NOK 600 down to about NOK 200, average around NOK 400.
And the expected time in the sea for 3 different?
Yes. So if you have like 4 underground fish going into the sea in June and then it's around 14 months to about harvesting size. And compared to if we have 100 gram and it's like 4 to 6 months longer and bigger. So we are saving like 4 to 6 months on the bigger spots. And it's even higher on the autumn smots delivering NOK 400,000,000 in autumn.
And that is a small size can go up to around 24, 26 months but with the 4 megahertz around 18 to 20 months.
Please quantify the SMOS mortality, what is done to reduce the mortality?
Yes, the small mortality was higher in this year than we expected due to The transport was difficult, it was cold sea and we suffered higher mortality than expected. And but with going forward, we can see for example in Levos that we will have a technology there to cool down the smog before delivery and therefore opening up a longer period over the year window to put out smog and therefore highly utilized the small station battery and also the license.
What is the current transport cost? You report revenues kilo, But how has the cost of transport evolved over the past quarters? And how do you anticipate the transportation cost will evolve going forward?
Yes, the transport cost has been going up especially on the Efreet. But we have been managing to lower that cost now with using the boat to USA as majority of our business sold in USA. And we are selling the salmon in 2% below. So our partner Seaporn and Ulfco, they have control on the cost of transport and so we are having the benefits of scale there as they are both huge buyer of transport for Salvan in the world, selling over 70,000, 80,000 tonnes a year. So we are breakthrough on that cooperation.
And but in general, transport cost has been going up but for ICE and moving more of this with the container ships to U. S. And we are looking at lower cost per
Karl Emil asks how will Naspers' volumes be between quarter 3 and quarter 4?
And assume that is a 2. We have not not that number We will not give that number up. It depends on how the growth is now. And as soon as this has reached wood size then we increased the harvest. So it can fluctuate between 43 and 44 when we harvest this that we have aim to finish this year.
Okay. Ulf asks what is the main reason for lowering 2023 production guidance? And what risks do you see for lowering the estimate further?
Yes, the explanation on that is that we have put in our growth model colder year than we had before. So I personally don't estimate that we will have a cold year every year. But for safety concerns and be able to produce more than we are guiding, we have decided to stick to this volume. And Therefore I am very convinced that we will reach the outlook we are looking at the moment and even outperform that going forward. The growth in small station is going well currently and we can see big benefits out of Kopperskare coming for next spring.
Yes, I don't think that there are any more questions. Hoping that I haven't skipped anyone. Okay, here I think okay, here is Patrick. He asks, How do you expect the remaining production volumes of NOK 6,000 this year to be distributed? Okay, so you already And to answer that, how do you view implications for sterile license in Iceland and further versions after recent developments on similar production in Norway.
And he refers to the news related to the Norwegian Royal Sand Licenses. Yes, the strategy for
Svera Salvo is that we will have bigger slots than normal for Stera. And therefore we are looking at having the Stera salmon only 1 year in the sea instead of having 2 winters. And this condition in Iceland is different from Norway as we have no sea lines. So handling is not necessary. And we with our low density strategy.
I have a great belief that this will be a success and this can grow well in Icelandic conditions. We are looking closely on all possibilities to make this success and we will put out the 1st piece now in Gautam and we will see going forward. The recent development on the last risk assessment was good step forward as we gained by the lot more fertile salmon than we had before. ISIS farm doubled the volume of fertile versus sterile. So in about one and a half year, we will have a new risk assessment.
And with The equipment and the safety and the responsibility farming we are doing as the low escapes and not seeing much of fish and that shouldn't be in some places. So with time we gained trust and reliability and that's a key factor here that we are building up new Salomon region with the latest equipment and the best people and therefore we can hopefully see more of salmon farming in Iceland. But I have also greatly relieved on Sterel that for example our main customer is looking forward to receive the salons. This is more environmentally friendly and we can gain higher prices for this type of
And Terje asks what is the likely timeline for the discussions with Luxor?
We have not decided anything on that. We will involve the market when if something happens in this process and we cannot comment on that at the moment.
Martin asks how do you plan the smot release for 2023 harvest both in number, weight and timing? Are you keeping some smolts on land over winter?
Yes, we are of course planning now for 20 21 Ato, quite a lot of smoth coming out in Atoom this year. And then we are fully stocked and Kopperskyr and Eastof for next year. And that will continue up to NOK 23. So we'll have a lot of smog coming in and bigger sizes.
Yes. I don't think there are any more questions. Please you can also just unmute and ask if I think this is everything here at least in the meeting chat.
Okay. And I would say that we are doing our best to produced with salmon and the whole team in Iceland is motivated and excited for the future and growth. We are benefiting a lot of places in Iceland that don't have any other opportunities and we are going to do great things. Thank you for staying with us and hopefully we'll see you again soon. Thank you.