Hello, everyone, and welcome to this presentation of SalMar's results for the Q2 of 2022. My name is Linda Litlekalsøy Aase. I'm the CEO in SalMar. Together with me today, I have our CFO, Gunnar Nielsen. Today's presentation will follow the same pattern as previous quarterly presentation. I will take you through some of the quarter's highlights before our CFO, Gunnar, will dig deeper into the details. Finally, I will be focusing on further sustainable growth of our business and give an update on our bid for NTS and merger with NRS, before I would conclude with a review of the outlook going forward. In the Q2 of 2022, SalMar continues to deliver strong operational performance, driven by the fantastic effort all of our employees put in every single day in the entire value chain, both at sea and on land.
This has resulted in solid results in the quarter, with record high quotations for the salmon price. In total, for Norway, we harvested 29,400 tons with a margin of 32.34 NOK per kilo. This gave us an operational EBIT of NOK 952 million. Including Icelandic Salmon and SalMar Aker Ocean, we harvested 32,400 tons with an operational EBIT of NOK 1.05 billion to a margin of 32.35 NOK per kilo. The farming segments deliver record margins, driven by the record strong salmon prices. Northern Norway continues the solid trend with a strong biological and operational performance. Central Norway with stable cost level due to continued solid performance. Iceland deliver record strong margins driven by solid price achievements and stable cost development.
For the sales and industry, we are very satisfied with the operational achievements in the segment, where our highly skilled employees have put a solid effort. As expected, financially, unfortunately, weak figures are delivered from this segment, as the record high salmon prices have had a negative effect on our fixed price contract in the quarter. There is work going on taking big steps offshore, and that continues according to plan. In the quarter, some important steps has been taken in further progress. The figures mentioned do not include settlement costs related to the lawsuit in North America, which in the Q2 negatively affects our figures, but with approximately NOK 164 million in the quarter. As we have already communicated, SalMar made a voluntary offer to buy all outstanding shares in NTS also in February.
At the end of May, we announced a merger with NRS. I will return to this a little later in the presentation. To give further details, I will give the floor to our CFO, Gunnar Nielsen, who will take you through the operational and financial highlights. Gunnar Nielsen, the floor is yours.
Thank you, Linda. As normal, I will start with the operational update and we will start with farming in Central Norway. Farming Central Norway, we harvested in this quarter 27,000 tons with an operational EBIT of NOK 1.2 billion. This gives us an EBIT per kg of 58.64 NOK. The strong salmon prices in the quarter and the solid biological and operational performance has given a record result in the Q2 2022. The cost level is similar to the Q1 and where we finished harvesting of the autumn 2020 generation with stable results. Spring 2021 generation has accounted for most of the volumes in this quarter, 75%. This generation has shown a good biological performance throughout the quarter.
In the Q3, we expect higher volumes and a slightly higher cost level compared with this quarter, Q2. We will continue harvesting spring 2021, and at the same time start harvest of autumn 2021. The status of the biomass in the sea in Central Norway is good, and we maintain the volume guidance for the whole year unchanged at 117,000 ton. We switch over to Northern Norway farming segment. In Northern Norway, we harvested 8,700 ton in the quarter with an operational EBIT of NOK 605 million and an EBIT per kg of 69.12 NOK per kg. This segment delivers a result which we are very pleased with, where the segment continues its solid trend and naturally the strong salmon prices contributes to this record result.
Harvested volumes are slightly lower compared to last- year, and this is due to optimizing the biological performance in sea. Autumn 2020 generation has accounted for the whole volume in this period, a generation which has shown a very strong performance. As we have said earlier, this is due to strong biological performance and a solid operation, which has given us strong growth, low- mortality, good utilization of MAB, and therefore a low cost. in the Q2, there has been a slight increase in cost level compared to the Q1 . Since we are coming from a period with a very strong performance in Norway, we continue to deliver a solid result and a solid cost level. We are gradually increasing the volumes harvested at InnovaNor, and that is in line with our ramp-up plan for the facility.
The status of the biomass in sea in Northern Norway is good, as in Mid Norway. In the Q3, we expect higher volumes and a slightly higher cost level. As in the other regions, we maintain our volume guidance for 2022 unchanged at 58,000 tons. We switch over to sales and industry. This segment has delivered an operational EBIT of -NOK 781 million. As expected, the record strong salmon prices has affected the profitability on our contracts. As earlier communicated, the contract share in the Q2 was 59% in this quarter, and this has had a negative effect due to the record strong salmon price. As we said in the last presentation, the high contract share was due to the low- harvested volumes coming out from Norway.
We are very pleased with the operational performance from our harvesting processing activities in the period. Linda has already mentioned, our employees in all our locations, InnovaMar, InnovaNor, Vikenco, Ålesund, and sales offices in Asia, has made a solid performance in this quarter as well. Volume going through our facilities are at the same level as in the Q1 , despite lower- harvested volumes in Norway, and this is a result of the gradual up-ramp, ramping up in InnovaNor. In 2022, the level of both harvesting and VAP has gradually increased at InnovaNor. When InnovaNor is completed and fully operational, we expect that it will deliver savings and improve value, and improve value chain performance for fish from Northern Norway, which will provide a platform for further sustainable growth in the north and improve our results in the region.
To sum up, we are therefore very satisfied with the operational performance of our employees. The financial result is unfortunately weak as a result of the negative effect of our contracts. Looking ahead, we expect the contract share to be around 35% in the Q3, and for the whole- year in 2022, it will be around 40%. Expect a lower contract share as a result of our expectation of a higher -harvesting volumes in Norway going forward. We take a look at Iceland. In Iceland, we harvested 3,000 tons with an operational EBIT of NOK 135 million, which gives an EBIT per kg of 45.53 NOK per kg. A record result driven by strong price achievement and stable cost level.
Low- contract share is positive for the price achievement in the period where we had a record strong spot price. In the period, we have continued harvesting of the 2020 generation, a generation which has stable biological performance and therefore also a stable cost level. Next quarter, In the Q3, we will continue harvesting from the same generation, but we expect a slightly higher cost level, and we also expect higher volumes. Volume guidance for whole 2022 is kept unchanged at 16,000 tons. We turn our attention to SalMar Aker Ocean. In 2022, SalMar Aker Ocean has been reporting as a separate segment. in the Q2, the segment made an operational EBIT of NOK -39 million. Last- year, corresponding costs were included in the reporting segment elimination, while the corresponding results for last- year have been included in the shown comparison figures.
In the short- term, the company is prioritizing the upgrade of the Ocean Farm One installation and the completion of the design of the new units in SalMar Aker Ocean. When upgrade of Ocean Farm One is completed, the unit will be transported back to the original location in Frohavet for the start of the next production cycle, which we expect to be in spring 2023. Over the summer, important steps have been taken to have a regulatory framework of offshore in place in order to utilize the potential of the ocean. February this year, a consultation document on the establishment of a licensing regime for offshore aquaculture, which was issued by the Ministry of Trade, Industry and Fisheries, which SalMar Aker Ocean submitted a thorough response before deadline in May this year. In July, the Directorate of Fisheries announced that they will start impact assessments of specific offshore areas.
In August, site location for Smart Fish Farm was approved by the Norwegian Food Safety Authority. All of these are important steps on the way for us to put in place a regulatory framework for offshore farming, and our ambition to initiate investments as soon as possible, so the industry can utilize the potential we see in the ocean. We also see that the strategic partnership with Aker works very well, and that we can utilize the complementary skill sets from both parties in SalMar Aker Ocean. Our attention goes to Scottish Sea Farms, which in the Q2 this year harvested 9,500 tons with an operational EBIT of NOK 190 million. That results in an EBIT per kg of NOK 20.01.
Increased margins from Scottish operation, but in the period, one has continued to harvest fish with high cost base due to the mentioned biological challenges we saw second half last- year. In addition to that, 48% of the volume sold were on contract, which affected the results in the period where we saw these strong salmon prices on spot. Integration of Grieg Seafood Shetland into Scottish Sea Farms continues according to plan. Our experience so far is good, and we are already starting to see the effect from the operational and biological synergies in the combination of these two companies. Volume guidance for 2022 is kept unchanged on 46,000 tons.
We will, before Linda comes back, look shortly on the financials, and we will start with a comparison of EBIT, starting with the high-level comparison with previous quarter. First, Norway. Norway has an operational EBIT of NOK 3.51 in the Q2 compared with the previous quarter. As already mentioned, price achievement increased due to record high summer prices, but negative effects from contract in this quarter impacted the price achievement compared to Nasdaq spot price in the period. Costs are slightly higher due to the higher cost in Northern Norway compared to previous quarter, and slightly lower volumes coming out in the Q2 compared to Q1. If we look at group as a whole, including Icelandic Salmon and SalMar Aker Ocean, EBIT per kg has increased with NOK 4.33 per kg.
We see higher margins coming out from Iceland, and that explains the increase. In addition, as Linda mentioned in the highlights, costs connected to lawsuits in North America has been recognized in the Q2 this year. This affects the operational EBIT of the group negatively with NOK 164 million or approximately 5 NOK per kg. We will turn our attention to profit and loss. We see that revenue is higher, and that is due to both higher volumes and higher prices. As a result, operational EBIT is also higher. In the first half, the Norwegian production tax and resource tax in Iceland came in at NOK 34 million. As a result of the higher forward prices, the changes in onerous contracts is negative, while the fair value adjustments is positive. Income from associates and joint ventures has increased due to improved results from the Scottish operation.
The green bond of NOK 3.5 billion, which was placed in April last- year, together with the higher interest rate, is the main cause for why the interest cost has increased to NOK 101 million in first half this year. Group EBIT has increased by 10.70 NOK per kg compared to first half last- year. The main reason, as already explained, is the increase in the strong salmon prices compared to last- year. We will look at the balance sheet, where we compare it with the end of the Q1 this year. Investments are progressing according to plan, which increased our non-current assets during the quarter. The standing biomass is somewhat higher compared with the close of the previous quarter and at the same time last- year. In June this year, we paid a dividend of 20 NOK per share.
Net interest-bearing debt, including lease liabilities, increased by NOK 2 billion in the quarter and landed on NOK 6.9 billion, including lease liabilities, whereof lease liabilities amounted to a little less than NOK 1 billion. In sum, our financial position remains strong with an equity ratio of 51.5% and a NIBD including lease liabilities over EBITDA of 1.5. This gives the company strong financial flexibilities to complete the strategic investments we are making throughout the value chain. Finally, we'll look at the movements in net interest-bearing debt. We start with our net interest-bearing debt and lease liabilities at the end of the Q1 this year with NOK 4.8 billion. EBITDA in the Q2 was NOK 1.1 billion.
Since the earnings have increased as a result of the high salmon prices, this gives us flexibilities to make our major investments across the value chain and in all regions. in the Q2 this year, we invested NOK 790 million in the value chain. The largest single- investments relate to the construction of the two smolt facilities, Senja 2 in north and Tjuen in mid. In addition, we continue to invest in both maintenance and capacity increases measures in both parts of the value chain, in other parts. We'll look at movements in interest-bearing debt. Here I would like to give you a short explanation of the changes in the net interest-bearing debt and lease liabilities in the quarter.
We start the net interest-bearing debt and including leasing liabilities at the end of the Q1 2022 of NOK 4.8 billion. EBITDA in the period was NOK 1.1 billion. Since the earnings have increased as a result of the high salmon prices, this gives us flexibilities to make major investments all across the value chain and in all regions. in the Q2 this year, we invested NOK 790 million in the value chain. The largest investments relate to the construction of the two smolt facilities, Senja 2 in northern Norway and Tjuen in mid Norway. In addition, we continue to invest in both maintenance and capacity increases in other parts of the value chain.
If we take into account what we have spent in interest and lease during the period, as well as other matters, we end up at a net interest-bearing debt, including lease liabilities at the end of the Q2 this year of NOK 6.9 billion. This is an increase of NOK 2 billion from the close of previous quarter. With that, I will hand you back the word to Linda.
Thank you, Gunnar. In our last quarterly presentation, I talked about how one of our most important postulate is sustainability in everything we do. In SalMar, there is a close connection between environmental, social, and economic sustainability. Production and economic growth is not sustainable over time unless it is environmentally rooted. One important KPI for us is, in this regard, is reduction of greenhouse gas emissions. In July 2022, we had the Science Based Targets initiative verified that our greenhouse gas targets is in line with a 1.5 target from the Paris Agreement. For us, this means we will reduce our greenhouse gas emissions by 42% from 2020 to 2030, both in Scope 1 and 2, which covers our own value chain and our own emissions, but also in Scope 3, which covers the value chain around us.
These are ambitious goals, and I'm not saying that this will be a walk in the park for us to achieve those goals. It is important that we, as a company, take responsibility for reducing global greenhouse gas emissions. It has been important for us to include Scope 3. Most of our emissions are outside of our own value chain, and therefore it gives an extra weight behind our ambitions for greenhouse gas reduction that Scope 3 is included. Only in this way we can truly reduce the emissions in producing our salmon by working together with our strategic partners. We know compared to other animal proteins, salmon already has a low- climate footprint. In SalMar, we have always aimed to maximize the value creation of the salmon while at the same time having the smallest possible footprint.
Therefore, the greenhouse gas target falls naturally into our strategy to develop the industry in a sustainable manner to ensure that the position of salmon is one of the most sustainable protein sources, that this position is strengthened. As you know, we have significant growth plans in both coastal and offshore farming. Over recent year, we have taken significant steps for further sustainable growth along the entire value chain in all regions. Today, I would like to talk a little bit about the status of some of the most important investments that are going on in our value chain at the moment. Already mentioned a bit from Gunnar. During the summer, we put the first roe in Senja 2, our new smolt facility which is in Northern Norway, which I have had the pleasure of visiting recently.
Next year this roe will turn into smolt, which will be released into the sea. This facility is an important piece going forward. The facility gives us greater flexibility in our smolt production, and together with our growth plans, this paves the way for success going forward. The same applies to InnovaNor, our new harvesting and processing facility, also in beautiful Senja in Northern Norway. In the first half of this year, we have gradually stepped up in the activity at the plant, and in the second half we will further increase the volume for both harvest and value-added processing. Both investment in Northern Norway are good examples of how we think. Flexibility and control of our salmon from the time it is roe to when it's ready for the dinner plate.
By having this in place, we can take the right actions at every step of the value chain to ensure the best result. In Iceland, they have also made some important move during the summer. Through the purchase of a stake in Ísthor, we further increase our smolt capacity, and this gives us again, flexibility and capacity to optimize our production and facilities in the growth plans we have in the Westfjords of Iceland. Offshore we work continuously and tirelessly, as Gunnar already mentioned. Ocean Farm will be ready for a new production cycle by spring in 2023. At the same time, all work is going on for new units, and we have ambitious growth in our plans going forward. Facilities and units are one thing.
To be successful in the value chain, it is the salmon and our employees that are the key. During my first time as CEO in SalMar, I've learned to know the unique competency, passion, effort, and culture of our people in SalMar. I would really like to say thank you, dear employees in SalMar. Thank you each and everyone for the hard work, your effort, your passion you put in every single day. You shall know that you make a difference, and you should be proud of the work you do every day. In good SalMar spirit, there is a great motivation to constantly work, to improve, and constantly break new records. Together we will work to strengthen ourselves further in the years ahead. To our owners.
The offer in NTS and the merger with NRS paves the way for accelerating the synergy effect in the overall farming activities in NRS, including SalmoNor and SalMar. The companies are already today some of the most important value creators and creators of jobs in the coastal municipalities in central and northern Norway, from Møre to the Russian border and in the Westfjords in Iceland. These are companies that fits well together, both industrially and culturally. In sum, this constitute a fantastic starting point for building something even stronger together. The merger plans with NRS represent the strengthening of the strategic rationale for SalMar's offer for NTS, where the companies are more quickly into a position to improve and optimize all parts of the value chain.
The merger will provide increased power and value creation potential across the overall business, from hatchery and production to processing and sales of the international market. It's precisely these effects that makes SalMar and NRS to merge together. We believe this will clearly be good for both people and the salmon. Together we can build something stronger and exploit the potential that lies in the combination of the company. This is in some of the world's best areas for production of salmon. At the same time, we are looking forward to really exploit the potential with all the dedicated and competent employees in InnovaNor, NRS, SalmoNor, and Frøy. As you have realized, we have great faith in developing something even stronger together. To summarize what this is about, this plan really says a lot about what will happen.
NRS carries out the previously agreed SalmoNor transaction, and SalmoNor and SalMar and NRS then merge together. In addition, SalMar voluntary offer at NTS is carried out. After the transaction, the new SalMar will thus include all farming activities in NRS, SalmoNor, and NTS and will be a subsidiary of SalMar with a large ownership stake in Frøy and shares in SalMar. The new company will simply become an attractive company with large growth plans both coastal and offshore, which means that we can say that there will be exciting times ahead. A little bit more about the details. After the payment of dividends to shareholders in SalMar, the remuneration in both the voluntary offer and the merger has been adjusted. In both transactions, respective shareholders will be awarded cash and SalMar shares in settlement for their shares.
Based on the acceptance rate of the voluntary offer and completion of the merger, this means that approximately 27.3 million new shares will be issued in SalMar with authorization given by the respective extraordinary general meetings that have been held and a total of NOK 6.8 billion will be paid as cash consideration to the shareholders in NTS and NRS. Given that the condition for the bid are fulfilled or waived, settlement will be able to take place no later than two weeks after this has been announced. With regards to the timeline for when these conditions can be fulfilled or waived, well, this is still uncertain. As we announced in July, we have received approval from the Norwegian Competition Authority, and so we will inform the market as soon as we know more.
Following the completion of the voluntary offer, a cash offer will be made for the remaining outstanding shares in NTS in accordance with applicable legislation. This process will not change our financial strategy. Last but not least, outlook. I would like to conclude this quarterly review by looking forward to the outlook. As previously mentioned, we aim to continue building a strong foundation in SalMar. We will continue to focus on ensuring that people and our precious salmon. Based on this, we will continue our strategic investments for further sustainable growth on land, along the coast, and offshore with unlimited strength. Our job will be to take the necessary step to strengthen us today and be even better tomorrow.
As Gunnar already has mentioned, we expect a higher volume and somewhat higher cost level in the Q3 compared to the Q2 of this year. We expect somewhat higher cost as a result of the fact, like everyone else, we also notice cost inflation on a number of factors. Therefore, it is important for us to maintain our strong cost focus. If we succeed with our biology, we also will get the lowest possible cost. Our contract share is 35% for the Q3. For the whole of 2022, the contract share is around 40%. When it comes to volume guidance, it will remain unchanged in all regions. In SalMar, we are optimistic about the future. Recent events have shown us how strong the salmon market is.
We expect that the global supply of salmon will remain at the same level in 2022 as in 2021. Well, this is all for this time, and I would like to thank everyone who has participated in watching via our webcast. The next quarterly presentation will be the tenth of November. Until then, enjoy the end of the summer and the autumn, and remember, eat a lot of salmon.