Hello and good morning, everyone, and welcome to the presentation of the second quarter and first half 2025 for Proximar Seafood. The presentation will be given by CEO Joachim Nielsen in Japan and myself, CFO Ole Christian Willumsen , here in Norway. As usual, we start by addressing the main highlights of the quarter before giving you an update on the sales and marketing. We will then share the status of the production, followed by going through the financial summary and the ongoing refinancing plan. Finally, we will go through the outlook before summing up. With that, I'll hand you over to Joachim.
Thank you, Ole Christian, and good morning. Proximar continued harvesting on a weekly basis through the quarter, although the volumes were lower than initially planned, reaching a total harvested amount of 321 tons HOG for the quarter. We continued with the impressive results of above 99% superior grade, demonstrating good performance when it comes to fish health and water quality. The average harvest weight was only 2.3 kg HOG, which is below our target. As previously communicated, this follows the restricted feeding regime, which continued through the quarter following the biofilter incidents in the end of 2023. This also impacts the average price achievement negatively. We continued to see strong price achievement for the market-sized fish, around NOK 108 per kg for the quarter. Following larger volumes of below-market-sized fish, the average price achievement was around NOK 75 per kg, and substantially below our expectations.
Since April, Fuji Atlantic Salmon is being served at Expo in Osaka by the large Japanese sushi chain Sushiro, which is great marketing for us. Proximar was also invited to Expo to hold a presentation in the end of June. Through the quarter, we worked with high intensity on the upcoming refinancing of part of our debt. Unfortunately, the progress was affected by the mortality incident in the end of May, which impacted the progress and timeline. The negative impact from lower volumes and price achievement was bridged short term, as several more comprehensive financing plans for the longer term were being explored. Ole Christian will revert on this topic later in the presentation. Finally, towards the end of the quarter, we could restart the last module following the biofilter repairs, meaning that we, after more than six months of reduced capacity, finally got back on track.
The lack of capacity in the grow-out is also the reason for the challenges seen in terms of harvest volumes and average harvest weights. We should now see improvements as we move forward. We are on track for the longer term, considering the number of batches and individuals currently in production. The reduced feeding in the grow-out has naturally impacted the biomass growth negatively, also in the second quarter. The standing biomass was approximately 1,300 tons at the end of June. When it comes to the market situation, the Japanese consumption is robust, and we expect to see increased demand in the long term. We have also seen the drop in prices from very high levels last year, positively affecting demand amongst the Japanese consumers. 2025 remains muted in terms of market prices, with expected recovery in 2026, which is also reflected in the forward prices.
As for the implied import cost to Japan, this remains robust and steady and illustrates well the cost advantage and price protection for Proximar. We see that the import prices remain at levels well above NOK 100 per kg. The numbers here are impacted by contracts, but still with present spot levels, we see pricing around NOK 100 per kg. As we've said on many occasions previously, Proximar is not depending on high salmon prices, but the significant cost advantage by local production in Japan, which is one of the larger established markets with the highest transportation costs associated with it. From the import prices and associated transportation costs, which sets the pricing in the Japanese market for Atlantic salmon, we remain optimistic on the outlook.
Having said that, we do expect the global prices to recover from the current levels, which are not sustainable over time, and again contribute to higher margins when we look into 2026 and beyond. Unfortunately, the average achieved price for Proximar is below the reference price, but this is due to a large portion of below-market-sized fish, which has been receiving much lower prices, as mentioned. This fish has also been competing with the locally farmed [Koji] salmon in Japan, which is a seasonal product, and large volumes coming out in May and June. The [Koji] is also a lower-priced fish, which has added to the price pressure of the segment below three kilograms. When looking at the segment above three kilograms, we continue to receive good prices and price premium compared to imported salmon.
We have now reached a significant milestone, just harvesting more than 1,000 tons of Atlantic salmon live weight since starting first harvest in September last year. This is a great achievement, and I'm even more proud to say that we have so far been able to deliver above 99% superior grade, showing high quality and good taste. We know the reason for the lower average harvest weights following a prolonged period of restricted feeding, which impacts both growth and size distribution. As we look forward, we expect this to normalize and contribute to raising our average price achievement. As said, the prices for market-sized fish are robust, and we're currently receiving above NOK 1000 per kg for this fish. Now, the average price achievement for the second quarter was NOK 750 per kg and NOK 850 per kg since the start of harvest.
This is reflecting the average sizes of 2.3 kg for the second quarter and 2.5 kg from first harvest. As mentioned, Proximar was invited to hold a presentation at Expo in Osaka, which again adds to the positive interest and attention we receive in the Japanese market. We've also been covered in several media channels through the quarter, as well as on national TV, and our efforts to build our brand and differentiate our product from imported fish and possible future competitors continue with high dedication. We are continuing to also receive interest from outside of Japan, primarily from the Asian region. It's well known that we've had our challenges with the feeding following late equipment installation and biofilter incidents in 2024, all these leading to restricted feeding for a prolonged period of time.
I'm therefore very pleased that we are now finally back to full utilization, and regular feeding is resuming. The link between growth weights and feeding is practically 100% correlated, and going forward, we therefore expect to gradually increase harvest weights and get back to the original production plan. At the same time, we need to harvest fish to make space for later batches, and our key priority is to get back to our targets for 2026. The fundamentals are supportive, and we see good fish health, high survival rates, around 99% when excluding incidents. When it comes to water quality, this remains good and stable, although we've had some challenges with temperatures in July and August following the heat wave in Japan. This is nevertheless resolved with additional cooling capacity now in place.
With this in mind, we are therefore confident in getting growth curves back on track and seeing increased harvest weights going forward. We've also initiated a more extensive sampling in July and August, and we'll continue with this going forward to better monitor growth and performance. The results so far show that growth is aligned with feeding levels. Currently, the standing biomass is 1,400 tons in the entire facility, and we are continuing now on regular feeding. I will now hand over the presentation to Ole Christian to go through the financials and outlook.
Thank you, Joachim. Let me start by saying that we continue to report on a relatively simple format since we still have modest harvesting. We therefore don't report any figures per kilo, and we haven't yet separated the cost base into farming and non-farming elements. We plan to do so from Q4 this year as the company ramps up production and harvesting. Looking at the figures, we had sales of about NOK 24 million in the second quarter and insurance payouts from the biofilter repairs of approximately NOK 13 million, yielding NOK 38 million in revenue and other income in the quarter. For the first half of the year, the figure was NOK 68 million compared to zero for the same period last year. We report an EBITDA in the quarter of NOK - 55.2 million.
Adjusting for two special one-off items and the fair value calculation, we had an adjusted EBITDA of NOK - 27.7 million in the quarter. In addition to the one-offs, the EBITDA deviation from expectations also relates to lower price achievement and lower harvesting volumes than anticipated. The net financials were negative by NOK 19.7 million, and we are then in total reporting a loss of NOK 94.2 million before tax for the quarter and NOK 150.4 million negative for the first half of 2025. Looking at the balance sheet, we held total assets of approximately NOK 1.5 billion, where about 90% were long-term fixed assets. The inventory and biological assets have more than doubled since the second quarter last year and stood at NOK 120 million at the end of June. The equity was just over NOK 223 million.
At the debt side, almost all of our liabilities are now current, and let's therefore move over to looking at the ongoing refinancing process. As announced on July 9th, Proximar is currently executing a comprehensive refinancing plan, which will support the liquidity situation while at the same time simplifying and strengthening the company's balance sheet. The plan includes both new equity as well as amendments and refinancing of the company's debt capital. We have long explored alternative financing options. However, due to the experienced operational issues, it has not been possible to conclude within the required timeframe, and therefore this plan currently offers the most viable and concrete solution for refinancing and future positioning. Looking into the details of the plan, it includes, firstly, a fully underwritten NOK 150 million rights issue, securing equal treatment to all shareholders, big and small, with listed tradable rights.
Secondly, amendments to the convertible bond, where Proximar will offer its bondholders a temporary period to convert bonds to shares at the conversion rate of NOK 1 per conversion share, meaning the same level as in the rights issue, and propose an amendment to the bond terms whereby the maturity date of the bonds is extended by 15 months at 5% interest rate per annum. Thirdly, an extension of the syndicated bank loan in Japan in two stages, first until the end of the year and second until the end of August 2026, following completion of the planned rights issue. The final documentation process is currently ongoing for this. Finally, the other loans maturing in the second half of 2025 will have their maturity dates extended, including the shareholder loan of NOK 104.2 million.
We will announce the further details and timetable for the rights issue, as well as the proposals made to the holders of the bonds in due course. Let's then move over to the outlook for the rest of the year and beyond. As mentioned by Joachim , we have now finally restored full capacity in our facility and hence look forward to having the weights and harvesting numbers gradually picking up. This will also drive the financial performance as more of the harvested salmon will be above three kilo HOG, yielding premium pricing. While there still is uncertainty related to growth rates and harvest sizes over the coming months, the fish scheduled for harvesting in the second half of this year and in next year remain intact in our facility.
We have about 2.2 million individuals currently in stock and expect to harvest approximately 900,000 fish this year and 1 million fish in 2026. Since July, more extensive sampling has started to monitor growth and performance. A more detailed guidance for 2025 and 2026 will be provided in conjunction with the prospectus for the rights issue and will be based on the results of this sampling program. Even though we have experienced several operational challenges over the last year, we have at the same time proven the ability to produce premium Atlantic salmon supported by good system performance. Therefore, the long-term outlook remains strong, and following the coming gradual ramp-up, we aim for full utilization of the facility in 2027. I will now hand it back to Joachim for the summary.
Thank you, Ole Christian. Again, I would like to emphasize the important milestone achievement with above 1,000 tons of high-quality Atlantic salmon harvested from our facility in Japan. I believe the 99% superior share, low natural mortality, and good feedback on taste demonstrate our facility's ability to produce and deliver. The low harvest weight, which also impacts the price achievement, is clearly related to lower feeding through a prolonged period of time. As we're now finally back to 100% utilization, feeding is resuming according to the production plan, and we expect the growth curves and harvest weights to also get back on track.
The fundamentals remain robust, with a significant cost advantage and solid price levels, despite weak global market prices for salmon. We are therefore uniquely positioned as the only producer in the Japanese market, and with the full utilization, we expect to gradually get on track with good earnings and showing good profitability. With these words, we are concluding our presentation and will open up for questions.
Very good. We are ready to go through the questions as they have come in. So far, there is one question regarding the future of the company in terms of expansion. Joachim, you can answer this. When do you expect to start building and have financial support for your second facility?
As we've said before, we are now focusing on getting stage one up and running smoothly. As we now proceed, we are also considering some alternative locations, but it's very early stage planning. We will proceed as we get more track record and also see more attractive financing options going forward for a second stage expansion.
Very good. The second question is about the expectation of harvesting this year. On the 23rd of June, you guided a harvest of 3,000 tons HOG in 2025. What is your updated harvest target for the year?
Yes, we've now provided guiding in terms of number of fish. The uncertainty is related to the average harvest weights. We have now initiated a more extensive sampling scheme, and we'll also get more data points before we can come back with a more specific guiding in terms of volumes expected in conjunction with the prospectus.
Very good. There is a question about the write-down of the receivable that we have in our accounts. I can take that. This is also described in the notes to the accounts where we have paid to subcontractors of the company's contractual counterparty to ensure completion of the facility last year. To be prudent, we have written this down as it is uncertain or not whether we can reclaim that prepayment. That is according to the, let's call it, prudent accounting rules in IFRS. More information is given in the accounts that we have presented. Okay, one more question. Also regarding the harvesting, you mentioned that you look to harvest 900,000 fish in 2025. What is the average harvest weight of the fish in the facility as of today?
The average harvest weight, which is until the 15th of August, is 2.54 kg since start of production. As I said, we are now reviewing, taking more extensive sampling of the fish, following the fact that we have been able to increase feeding over the last month. We'll get back on more details later on in conjunction with the prospectus.
Very good. There is one question regarding the insurance. Any updates on insurance payments for the lost production in the first half year? We have several insurance cases ongoing, so I guess this question relates to not claiming repayment for the biofilter incidents that we are also receiving, but more the use of our business interruption insurance since the question is regarding lost production. If that is the question, that is something we have initiated and expect to be able to claim for that. However, that is a long process because it's not possible to do that in stages. We need to go through the whole 2025 and sum up what has actually been lost production and what part of that will be covered under our business interruption insurance.
It's a complicated procedure that will take time, but it's, of course, important for the company to be able to claim what's under the policy. This is something we have initiated and will follow up closely and report in due course when there is something to say about that. All right, that was the number of questions that have come in. With that, I think we can conclude this Q&A session and end by saying that we will report or give you an update on our production status in early October, following the end of the third quarter. We will report the third quarter on the 14th of November. With that, we conclude today and wish you all a good Friday. Thank you for watching.