Frøy reports solid Q2 ahead of expected sale to Goldman Sachs

Norwegian salmon farm installation, maintenance, inspection, fish transport, treatment, sorting, and counting task firm Frøy reported a positive Q2 2023 in what will likely be its last quarterly report as a subsidiary of salmon firm SalMar.

In a Q2 2023 trading update, the company reported revenue of approximately NOK 518 million (USD 49 million, EUR 45 million), a slight increase over the NOK 507 million (USD 48.6 million, EUR 44.4 million) the company posted in Q2 2022. Increased revenue was complimented by increased earnings before interest, taxes, depreciation, and amortization (EBITDA) of NOK 171 million (USD 16.4 million, EUR 14.9 million), up from NOK 154 million (USD 14.7 million, EUR 13.4 million) in Q2 2022. 

The company added that as of 30 June, the company had a backlog of approximately NOK 6 billion (USD 575 million, EUR 525 million), including opetions, and a net interest-bearing debt of NOK 4.4 billion (USD 422 million, EUR 385 million) versus the NOK 3.7 billion (USD 354 million, EUR 324 million) it had in Q2 2022.

The update, the company said, was provided in connection with the “expected upcoming completion” of an acquisition by Falcon Bidco AS, a company indirectly wholly owned by infrastructure funds managed by Goldman Sachs Asset Management.

Frøy is, as of now, owned by SalMar, but the salmon farming company said it reached an agreement to sell its 72 percent stake in Frøy. The transaction is roughly valued at NOK 4.7 billion (USD 450 million, EUR 411 million), based on a cash consideration to be paid to SalMar of NOK 76.50 (USD 7.34, EUR 6.70) per share. At its last update, SalMar reported that its subsidiary, NTS, which SalMar took control of in December 2022, held 62,269,112 shares in the company

Frøy said that the acquisition is still expected to take place in Q3 2023, and that its full Q2 2023 report will be released on 31 August.  

Photo courtesy of Frøy