Hello, and good afternoon, and welcome to the Second Quarter Report Presentation from Salmar. This morning, I wake up with a flu And that hit my voice. Therefore, I need got help from Runeard to do the presentation. So Runeard?
My name is Rune Sivertsen, and I'm the Director of Strategic Projects here in Sanmar, and I will be assisting with the presentation today. We'll be keeping to the same procedure as before. I will kick off and give you the highlights before our CFO, Tryna Sate Rumel, takes you through the details. Then I will come back with an update on the steps we are taking throughout the value chain to strengthen ourselves for further sustainable growth, followed by a review of our future outlook. Finally, we will take a closer look at the company that will lead the development of offshore fish farming, Salmai Aker Ocean.
Salmai has a 3rd year history of continuous growth, growth built on 2 fundamental operating principle. 1st, a footprint as possible on the comments we make use of and second, as much local value creation as possible from the salmon we harvest. We are therefore investing 1,000,000 of kroner in our value chain to secure sustainable growth and operations always on the salmon's terms. In the area of Smolz, we have 2 major constructions projects underway, in Northern Norway and in Central Norway, all of which is intended to facilitate more optimal and cost efficient production. We have increased our production capacity investments in Nekton Habruk and Rafnest, 2 transactions that together will give Salmar an additional 5,500 tonnes of maximum allowable biomass in Central Norway.
As always, local processing is important for us. With the start up of Vikinco, the new processing facility in the 2nd quarter and Inova Nuys immediate start up, We are boosting our ability to offer the right product to the right customer even further and at the same time as we secure increased local value creation in the areas where we operate. Our friends at Icelandic Salmon are making their very first quarter presentation where they will be launching an entirely new brand for their salmon products. At the same time, the company has bought 2 hatcheries, which will provide a platform for further growth. In Scotland, we have taken major steps to with the acquisition of Grig Shetland, which further strengthens our presence in that region.
Salmar has also made a voluntary cash offer to purchase all outstanding shares in Norway Royal salmon. We have a number of commercial activities that overlap those of NRAS that make it possible to realize substantial synergies. And we will come back to that a little bit later in the presentation. And at the very end of today's session, we will provide further information about Solmai Aker Ocean. So with that, I will move on to our performance in the Q2.
Good craftsmanship leading to strong biological performance has been the key to strong second quarter results for our fish farming segments in Norway. Fish Farming Central Norway posted an EBIT of FEM per kilo, while fish farming in Northern Norway posted an EBIT of NOK Shusak's 0.02%. This is a very good performance from Central Norway and a particularly impressive one from Northern Norway. Unfortunately, we had a soft EBIT from sales and processing that affected our results. At the start of the year, we had a far gloomier view of the market and the price of salmon then turned out to be the case.
The fact that we underestimated the market and the price is the reason for the segment's weak results and the main reason why we are overall posting our 2nd quarter results That is on the soft side. The negative impact of fixed price contracts on EBIT in the quarter has hit us hard. In addition, start up costs at Vikenkou and Invenur have had a negative effect on the results. Overall, Therefore, the segment posted a negative EBIT of NOK 136,000,000 in the quarter. On the positive side, The recent period has shown us how robust the Southern market is, and we are optimistic with regards to continued strong market development going forward.
All in all, this means that we are posting a slightly mixed result for the 2nd quarter. Our Norwegian operation harvested a total 34,300 tonnes in the quarter and posted an operational EBIT of NOK 633,000,000. This gives an EBIT of NOK 18.44 per kilo. Including Icelandic salmon, we harvested 36,600 tonnes in the 2nd quarter and made a total operational EBIT of NOK 661,000,000. This gives an EBIT of NOK 18.05 per kilo.
Icelandic salmon continues its positive trend with another rise in profits. Stable operations and better price achievements helped to lift profits in the 2nd quarter. Somar still expect to harvest 163,000 tons in Norway and 14,000 tons in Iceland in 2021, but with the upside potential due to the condition of the standing biomass and the latest acquisitions. The upgrade to our Viking Core plant was completed and put into operation in the Q2, and we aim to start up the Inova Nur plant in the 4th quarter, slightly later than previously advertised. This is due to the COVID situation.
As you know, we have put in place a green financing package and completed a share issue in 2021. Together, this gives us financial capacity and flexibility well as strategic opportunities. I will come back with further details on this a little later. But first, I would like to hand the word over to our CFO, Trina, who will take you through the operational and financial positions of this presentation. So Trina?
Thank you, Runeil. As usual, I will start with some comments to the segment Farming, Central Norway. In the quarter, we harvested 21,000 tonne with operational EBIT of NOK 520,000,000 and thus EBIT per kilo NOK 24.75. Central Norway continues the trend by delivering solid results. We have harvested mostly from the spring 2020 generation in the quarter, accounting for about 85% of the volume significantly higher volume and cost at the same level.
We will continue to harvest from the spring 2020 generation. And as already mentioned, the biological status of the fish in sea is good with a strong growth in the last period. As already mentioned, we keep the volume guiding for the year. And for Farming Centre Norway that is 107,000 tonne. Farming Northern Norway.
We harvested 13,300 tonne in the quarter, operational EBIT of NOK 347,000,000 which gives EBIT per kilo NOK 26.02. The segment continues to deliver stronger results where autumn 2019 accounted for the main part of the volume period, about 80%. At the same time, we finished the autumn 2019 generation. We have increased average weight of the fish harvested, which positively affect the price achievement in the quarter. We have started harvesting on the spring 2020 generation at the end of the period, a generation which has shown good biological performance.
As mentioned also in previous quarters, the cost level, it's still affected by relatively high harvest and wellbought cost. This cost will be reduced when Invenwood is up and running in quarter 4. As in Central Norway, Northern Norway has shown very good growth and the status of the biomass is good. We therefore expect somewhat lower cost level in quarter 3 with volume at the same level where we will harvest from spring 2020. Sales and Industry delivers operational EBIT of negative NOK 136 1,000,000 in the As already mentioned, the result is negatively affected by the contract, where the contract share was 28% in the quarter and relatively high compared to other quarters.
At the same time, we have some costs related to the start up of Vikenkou after the upgrade and also preparing for Invanur. And also in addition, lower capacity utilization due to lower volume to our harvesting plant, which also weakens the result. The contract share for this quarter, quarter 3, is expected to be around 25% and also for the year in total. Despite a weak result in the quarter, our strategic belief on local processing stays firm. COVID-nineteen has shown us how important this flexibility is by making it possible to quickly adapt ourselves and offer the market the products they ask for.
And as you know, we are close to completion of in Vanu in Northern Norway. Unfortunately, start to be delayed due to quarantine restrictions on the labor force due to COVID-nineteen, but we are now planning for operation in quarter 4. We look forward to the quarter 4 where we can use this facility and process our own fish locally on Senia. Iceland. On Iceland, we harvested 2,300 tonne in the quarter with an operational EBIT of NOK 28,000,000 which gives NOK 12.22 per kilo.
Iceland continues the positive trend after some challenging quarters in 2020. Good operational performance and increased price achievements strengthens the results. In the period, we harvested from the autumn 2019 generation, a generation which has shown significantly improved biological performance compared to previous generations. This generation accounted for the entire volume in the quarter, and we will also continue to harvest from this generation in quarter 3. In quarter 3, we expect somewhat higher volume and similar cost level.
And the guiding for the whole year is unchanged. I will also mention that we have made the acquisition of 2 small facilities on Iceland in this quarter. This increased our further capacity for growth in the value chain, and the acquisition will give the company access at EUR 1,500,000 more smold from 2,003 with the flexibility to produce the size that is right to optimize utilization of existing licenses. In addition, the company has launched a new brand earlier today. And for those of you that didn't get a chance to see the quarter presentation, we recommend you that you look into the company's webpage.
Scottish Seafarms. The company harvested 11,400 tonne in with an operational EBIT of NOK 119,000,000, which gives EBIT per kilo of NOK 10.46. The volume is the highest ever in a single quarter for the company. The result is somewhat affected by higher cost compared to previous quarter, but the biological status of efficiency is good and the company expects lower cost in quarter 3. Volume guiding is for the year is kept unchanged.
And as already mentioned previous, We have agreed to purchase Greek Seafoods U. K. Operation that was informed in the market in June. And the process of having all the approvals necessary is according to plan. And then some comments on the financial side.
I will start with the overall comparison from the previous quarter. 1st only Norway, that is in the top of this slide, which has an increase of EBIT per kilo of NOK 0.26 compared to the previous quarter. And as already commented, the salmon prices increased in the period, But due to negative effect from the contracts, the net sales price is not increased on the level as the spot price. And together with slightly higher cost in the value chain, this explains the change from the previous quarters. If also including the Icelandic operation, the group, the EBIT per kilo is increased slightly more.
That is NOK 1.03. And the main reason is, of course, increased margin from the Icelandic operation. Group P and L. Some comments on the P and L and comparing this quarter to the same quarter last year. We have a lower revenue due to lower volume and at the same time also operational EBIT is reduced due to the same reason, lower volume and slightly higher cost in the value chain.
As you can see, we also have a separate line referred to as production tax, And that is the new tax that was implemented starting January 1 this year, which is NOK 0.4 per kilo harvested in Norway, and we also have some resource tax from the Icelandic operation, including that line. Fair value adjustment is positive due to higher forward prices and higher volume in the calculation. Income from associates, that's mainly Scottish Seafarm and is positive due to improved results and also positive fair value adjustment. On the interest expense, the SEK 41,000,000, Interest related to leasing accounts for SEK 14,000,000 out of this SEK 41,000,000. The balance sheet quarter 2 compared to quarter 1.
The investments are progressing according to plan. Standing biomass is at the same level as in quarter 1, but significantly higher comparing to the same quarter last year. Net interest bearing debt including leasing has increased with SEK 822,000,000. In total, as you can see from the figures, we have a very solid financial position with an equity share of 53 point 8%. And the ratio on NIBD versus EBITDA, including leasing, is 1.70.
If we exclude the leasing, the ratio is SEK 1.39. And also we paid out dividend in June, SEK 20 per share. And also we have the private placement SEK 2,700,000,000 that also was completed in June. That, of course, also impacted figures. Some few comments when comparing what is happening in the quarter bearing debt and starting with a net interest bearing debt to the left on this figure.
The main component is EBITDA and the cash flow from operation is positively affected by release of working capital with change in accounts payable is the main reason. Investments are progressing as planned, and the largest investment in the quarter are of In Vanur and Sena 2 and Huen, which is the freshwater projects. And during the period, SEK 2,300,000,000 was paid dividend and private placement was completed at SEK 2,700,000. We end the quarter with SEK 5,400,000,000 in net interest bearing debt including leasing. In April, we received our credit rating from Nordic Credit Rating.
We received a rating A- with stable outlook. For further details, you can go into our website. In the first half of twenty twenty one, we have strengthened our financial flexibility, which give a robust platform to complete all the growth initiatives we have in the value chain. And in 2021, we have entered into new agreements of in total NOK 7,500,000,000 NOK in green financing. In this way, most of our financing is green, which clearly express our commitment to move our industry in an even more sustainable direction.
Some more details. In April, a successful issue, our first green bond was completed. This is the largest green bond in NOK and was at NOK 3,500,000,000 and was priced at NIBD plus 135 points and has a duration until January 2027. The green bond was listed on Oslo Stock Exchange in July. And we also said in our quarter 1 quarter 4 presentation that we have received existing credit facilities, refinanced existing credit facilities where we have entered into 5 year sustainability linked RCEF with a limit of NOK 4,000,000,000.
This financing has 4 sustainable KPIs linked to where we get a higher interest margin if we do not succeed and a lower interest margin if we succeed. We have chosen to focus on 4 of our most important KPIs where everyone pulls us in an even more sustainable direction. At the same time, we also have increased the limit on overdraft facility to NOK 1,000,000,000. Together with the private placement in June of SEK 2,700,000,000 we have secured the financial flexibility. Then this was what I have planned to say today and then I will leave the word back to Rune.
Thank you, Thierryne. Salmar aims to be a leading actor in both traditional aquaculture and in offshore aquaculture. For Salmar, they are equally important. As a sustainable marine protein, salmon is a key aspect of the green shift. This has also been the main reason why Salmar has invested over NOK 12,000,000,000 in growth and industrial expansion in Norway over the past 10 years.
Today, I would like to give you a brief look at the strategic steps we are taking and have completed so far in 2021. And I would like to start with a smolt. Good smalt of the right quality, the right size and transfer to sea at the right time adapted to each individual site, That is our mantra when it comes to smalt. And that is why we are currently investing substantial sums to pave the way for further growth. In May this year, we decided to invest in our new small facility at Chuyen in Central Norway.
Seen together with the expansion we are well underway with in Senia, This will give us in excess to SEK 30,000,000. Fish farming along the Norwegian coast is fundamental for both Salmar and Norwegian aquaculture industry. Access to biomass MAB capacity is crucial if we are to continue to grow. Through the acquisitions of shareholdings and the consolidations of Rafneslax and Nekton Harbruck in HUSUEN, We have increased our production capacity in Norway by 5,500 tonnes Mab. This gives us an annual increase in harvestable volume of 8,000 tons.
Over the past 12 months, we have increased our MAB capacity with 15% through acquisitions and the purchase of MAB capacity under Norway's traffic light system. This corresponds to a total increase in production capacity almost 14,000 tonnes MIB, which gives a total increase in harvestable volume of 20,000 tonnes per year. This clearly shows that we are continuing to pave the way for further growth in Samar. For Saar Mar, it has always been important to secure local value creation. The upgrade of Weakenco, our harvesting and secondary processing plant in Werribstar, went into operation in the Q2 of 2021.
The plant has a 40,000 tonnes annual production capacity. Both the harvesting and processing facilities are packed with the latest technology, which will create a better and more cost efficient operation. In addition, we are now in the home straight with the construction of our new harvesting and processing plant in Senia called Inova Nur. The plant will give us significant efficiency gains from the very beginning. Inova Nord will have the harvesting capacity of 75,000 tonnes per shift per year and a secondary processing capacity of 30,000 tonnes per year.
It will also offer a substantial potential for increased capacity on both the harvesting and secondary processing sites within the existing sites within the existing building structure. With both Weakencoa and Invanur up and running And including in the Valmayer in Fria, Solmayer will have a significant harvesting and processing capacity going forward. As communicated in a stock notification last week, Salvard will make a voluntary offer to buy all outstanding shares in Norway Royal salmon for NOK 30 I'm sorry, for NOK 2.70 per share. Together with Eneraz, Saumwalt has a number of overlapping industrial activities, both in Northern Norway, in the Westfjords in Iceland and offshore. All in all, this constitutes a fantastic starting point for being able to build something even stronger together, and at the same time realize significant synergies in all parts of the value chain from smolt to sales.
The acceptance period for the offer will be 4 weeks with the possibility of extension and will begin as soon as The offer document has been approved by the Oslo Stock Exchange. For 20 years, Salmaier has jointly owned Scottish Seafarms in partnership with Leer. This shareholding has taken us on a fantastic journey where step by step the company has grown into one of the largest aquaculture enterprises in the UK. Scottish Seafarms acquisition of Griggs Shetland represents a major step in the company's further expansion. We can extract substantial synergies, both biological and operational, which together with Scottish Seafarms, very competent management team, we will have significant use for.
The strategic and biological control we now have in Shetland is particularly important in this respect. The acquisition will increase the annual volume harvested by around 15,000 tonnes, half of which will fall to Solmai. The transaction is subjected to certain customer closing conditions, and it's expected to close within the Q4 of this year, depending on processing time with the relevant authorities. So to conclude this review of the quarter, I would like to look forward to the outlook. At Salmar, we will continue to focus on the things we can influence and do something about.
Good financial results come from good biological conditions and farming on the salmon's terms, as well as a strong strategic and operational focus along the value chain. That is why we are continuing to make strategic investments for further sustainable growth on land along the coast and far out at sea. We still expect to harvest 163,000 tonnes in Norway and 14,000 tonnes in Iceland in 2021 as a whole, but with upside potential due to the latest acquisitions. Overall, we expect a higher volume in the 3rd quarter with a slightly lower cost. Fixed price contracts will account for around 25% of the sales volume in both the Q3 and in 2021 as a whole.
We expect low to moderate growth in the supply of Atlantic salmon in 2021, But the heightened market uncertainty caused by COVID-nineteen remains in place. At Salmar, we take an optimistic view on the future. In fact, the recent period has shown us how robust the salmon market is. Our job is to take the steps necessary to strengthen our position today while enabling us to perform even better in the future. In Salmar, we will continue to focus on the solution, not the problems.
So to exciting new chapter. Salmar's business is based on farming salmon on the salmon's terms. Since Salmar's very beginning, we have been on the lookout for the most environmental sustainable sites for the production of salmon. In the past, we have only had the equipment to make use of a tiny fraction of the vast ocean space in the Norwegian Economic Zone. Salmar decided to challenge this restriction when we started our offshore fish farming concept back in 2012.
There could be nothing more natural than making use of even more of the Norwegian coast further out to the sea in the salmon's natural habitat. For Salmar, offshore fish farming is a chapter that began back in 2012. The first key milestone was a feasibility study carried out in 2012, 2013, which showed us that moving further out offered a huge potential, particularly with regards to space and optimal biological conditions. The second major milestone was the completion of the engineering and design of Ocean Farm 1. And Ocean Farm 1 was the first steps towards opening up vast new areas.
It provided a stepping stone on the journey from inshore to more exposed waters, but there was no regulatory framework that could allow us to realize it. We must therefore pay tribute to the Norwegian authorities, which in 2015 established the development license scheme. Development licenses have given the industry and Norwegian R and D a substantial boost. The fact that Sommer had the opportunity to apply and was granted such licenses, was a determining factor in realizing our Ocean Farm 1 project. The construction of the Ocean Farm 1 installation got underway immediately after we were granted licenses, and it was finally towed into place in September 2017.
We have now completed 2 production cycles with fantastic biological results, good growth, low mortality and no delousing sums up the production so far. More recently, we have entered the Smart Fish Farm project. This is a concept that will allow us to cross the threshold and operate right out in the open ocean. Along the way, we have learned many lessons and has amassed a huge amount of data, which gives us a completely new foundation and insight into what is needed to operate in these harsh and exposed conditions. And the way it often goes is that the more you learn, the more you realize how many issues are yet to be resolved.
Producing salmon in exposed areas of open ocean places immense demands of the production facilities and the technology concerned to make it happen. This has led us in Salmar to a realization that we need a strategic partner who could help us plug the gaps in our knowledge, And we realized that we lacked the expertise we needed to commercialize and fully exploit the potential of offshore fish farming. It is therefore my great pleasure to announce that together with Aker, we have now established the company, Solmai Aker Ocean. This company will be the very spearhead for the development in offshore fish farming. Aker and Salmaj will join forces to give an even more powerful boost to an accelerated development of offshore fish farming.
This is a unique partnership with each party bringing complementary competences, which are world leading in their respective fields. Expectees in agriculture, biology, sustainability, technology and the know how of working offshore are all areas which together are crucial for our common success. We are incredibly pleased and proud that Aker and Salmar now has joined forces to make offshore fish farming a reality through the newly established company, Salmar Aker Ocean. Where the ambition is to make a global offshore aquaculture company with the highest standards of fish welfare. Together with AKI, we will have the strength to realize the potential that exists in the open ocean for the sustainable production of food to ever growing global population.
It's all about being willing to invest I'm willing to share knowledge and challenges across disciplines. And having the ability and the will to stay true to the course through a lengthy development process. ICON promise on behalf of Salmar that we, in partnership with Aker, will contribute all the competence and resources necessary to succeed on this journey. Our new commercial success story is on the starting blocks. We look forward to the next chapters in the story of Ofra fish farming, which will be written by Salmai Aker Ocean.
And so with that, we have come to the end of the presentation. On behalf of Sonae, thank you.