Seafood is one of Norway’s largest export industries, and farmed salmon accounts for most of its export value. For investors, this means Oslo Børs offers a range of seafood stocks that hardly exists on any other exchange: from the world’s largest salmon farmer to smaller regional companies and newer land-based producers.
Salmon stocks still behave differently from most other shares. This guide explains why, what actually drives the share prices, and how to compare the companies.
Why salmon farming is a special industry
A salmon takes around three years from egg to harvest: roughly one year in a land-based hatchery and one to two years in sea pens. The fish harvested this year were effectively decided several years ago, so farmers cannot quickly produce more when demand rises.
Growth is also limited by regulation and biology. The authorities decide how much fish each company may keep in the sea, and sea lice and disease mean no one can expand production without limit. Supply therefore grows slowly, and the price takes most of the adjustment when demand changes. The result is an industry with high margins in good years and large swings in earnings and share prices.
What drives salmon stocks
The salmon price
The salmon price is the single most important factor. Because the cost per kilo is fairly stable in the short term, price changes feed almost directly into profit.
A simplified example (not actual figures): a company produces salmon at a cost of NOK 70 per kilo. At a price of NOK 80 the margin is NOK 10. If the price rises to NOK 90, the margin doubles to NOK 20, although the price rose only 12.5 per cent. This operating leverage explains why the shares react strongly to price moves.
The price also follows a seasonal pattern. It is often highest in spring and early summer, when harvest volumes are low, and lower in autumn, when much of the fish reaches harvest weight. Statistics Norway publishes the export price for fresh salmon every week.
Currency matters too. Much of the salmon is sold to Europe and priced in euros, so a weak krone raises revenue in kroner for Norwegian farmers.
Biology
Sea lice, disease, algae, jellyfish and high sea temperatures can raise mortality, require costly treatments and force early harvesting. Fish harvested early are smaller and often fetch a lower price. Biological problems therefore hit volume, cost and price at the same time, and differences in biology are one of the main reasons some companies earn far more per kilo than others.
Regulation and tax
Fish farming in Norway requires licences, and each licence allows a maximum amount of fish in the sea. Under the so-called traffic light system, the coast is divided into 13 production areas. Every second year the authorities assess how sea lice affect wild salmon in each area: green areas may grow, while red areas must reduce production. Where a company holds its licences therefore matters a great deal for its growth.
From 2023, Norway introduced a resource rent tax on aquaculture with an effective rate of 25 per cent, on top of ordinary corporate tax. The tax reduced the profitability of farming in Norway and showed how much political risk the sector carries. Regulation and tax in the countries where the companies operate are worth following.
Costs
Feed is the largest cost item, and feed prices depend on raw materials such as soy, fishmeal and fish oil. Lice treatment, transport and staff add to the bill. Cost per kilo is the best measure of how efficiently a company is run, and it is reported every quarter.
The companies on Oslo Børs
The largest seafood companies differ most in where they operate and how much of the value chain they control.
| Company | Where they operate | Distinctive features |
|---|---|---|
| Mowi | Norway, Scotland, Chile, Canada, Ireland, the Faroe Islands and Iceland | The world’s largest salmon farmer, with its own feed and processing |
| SalMar | Central and Northern Norway, and Iceland through Icelandic Salmon | Large Norwegian farmer that is also developing offshore farming |
| Lerøy Seafood Group | Northern, Central and Western Norway | Farming, its own fishing fleet and large seafood distribution |
| Austevoll Seafood | Norway and internationally | Holding company that is the largest owner of Lerøy and has pelagic operations |
| Bakkafrost | The Faroe Islands and Scotland | Highly integrated, including its own feed production |
| Grieg Seafood | Rogaland and Finnmark | Farmer focused on Norwegian regions |
| Måsøval | Central Norway | Smaller farmer based on Frøya |
Mowi ASAMOWI202.60 NOK−0.6%HOLD
SalMar ASASALM544.50 NOK−1.2%HOLD
Lerøy Seafood Group ASALSG41.60 NOK−0.1%SELL
Austevoll Seafood ASAAUSS81.30 NOK−0.5%HOLD
PF BakkafrostBAKKA433.60 NOK−0.3%HOLD
Grieg Seafood ASAGSF22.70 NOK−1.6%SELL
Måsøval ASMAS37.80 NOK−0.3%HOLDLive prices from the latest close. Signals are model-based, not recommendations.
Iceland and land-based farming
Several smaller companies offer exposure to new regions or new methods. Icelandic Salmon and Arctic Fish farm salmon in Iceland, where the industry is still growing. Salmon Evolution and Andfjord Salmon produce salmon on land, which largely avoids sea lice but requires heavy investment and higher energy costs. These companies are often at an earlier stage, and the risk is correspondingly higher.
Icelandic Salmon ASISLAX58.00 NOKHOLD
Arctic Fish Holding ASAFISH24.00 NOK−1.6%SELL
Salmon Evolution ASASALME3.110 NOK+1.0%HOLD
Andfjord Salmon ASANDF27.50 NOK−2.1%SELLLive prices from the latest close. Signals are model-based, not recommendations.
How to assess a seafood stock
When comparing the companies, six things are particularly worth looking at:
- Cost per kilo compared with peers. Low costs keep margins healthy even when prices fall.
- Harvest volume and growth plans. How much does the company expect to harvest in the coming years, and where will growth come from?
- Biological status. Mortality, lice levels and the number of treatments are reported regularly and say a lot about the risk.
- Geography. Which production areas and countries the company operates in, and what regulation and tax look like there.
- Price achievement. How close to the spot price the company is actually paid. Fixed-price contracts dampen both upside and downside.
- Debt and dividends. Seafood companies often pay high dividends in good years, but dividends can be cut quickly when margins fall.
Next steps
- See the full price list for Oslo Børs with today’s prices and signals.
- Analyse your portfolio and see how much you hold in one sector.
- All companies on Oslo Børs A–Z