Pelagia Holding AS - 2Q and 1H 2026 Financial Report
Revenues for Q2 2026 were 2.963 MNOK (Q2 2025: 2.482 MNOK). EBITDA was 204 MNOK in Q2 2026 (Q2 2025: 104 MNOK). Profit before tax was -21 MNOK in Q2 2026 (Q2 2025: -118 MNOK). YTD revenues were 6.071 MNOK in 1H 26 (1H 2025: 6.274 MNOK). EBITDA was 523 MNOK 1H 26 (1H 2025: 430 MNOK). Profit before tax was 88 MNOK in 1H 26 (1H 2025: 1 MNOK).
Pelagia changed the accounting principle related to cash flow hedges in Q3 2025; comparative figures have been changed accordingly for Q2 2025 and 1H 2025.
As reported in previous quarters, earnings were weaker in 2025 compared to 2024 due to a significant drop in fish oil prices. This impacted also salmon oil prices which had a similar reduction. Fish oil prices have improved going into 2026 due to the lower, than expected anchovy quota in Peru the last two seasons. In addition, the current El Niño have further reduced the catch of anchovy in the current fishing season in Peru and thus increased world market prices for fish meal and fish oil. The increase in the fish oil prices also impact the prices for salmon oil. Over time this will improve salmon-based margins going forward as well, but longer contracts delay this effect.
For the FOOD division we saw that the reduced Mackerel quota in 2025 increased the purchase price significantly. This significant increase could be difficult to pass over to the market, and some markets will drop out. Even more challenging are the advised quotas from ICES for 2026. The advice for the Mackerel quota was down 70% but was finally reduced by about 50%, the North-Sea Herring quota is down 25% and the Blue Whiting quota down 41%. The latter mainly impacting the FEED division. The NVG quota advice is up 33%. In summary, this proposed decrease in raw material will be a serious challenge for the FOOD division and the industry as a whole. See further details below.
In Q2 2026 Pelagia had a decrease in raw material volume to the FOOD division compared to Q2 2025. Quota reductions, timing of catch and more North Sea - Herring caught not for Food, but for direct fish meal and fish oil purposes contributed to the reduction. Pelagia had in advance of the season informed that without political and regulatory limitation to the catch of juvenile herring for fish meal and oil, Norway would lose position in the human consumption herring market. The warnings were neglected and shortage has resulted in a dramatic increase in the herring raw material prices which will most likely have as a consequence a long-term negative effect on consumption. In addition, the overall reduction in quota will be a challenge for the FOOD for the remainder of 2026.
Pelagia generates revenue worldwide and, for the FOOD division in particular, Eastern Europe remains an important market. The current war in Ukraine increases the risk related to the operations in the FOOD division somewhat. As per today Pelagia has no material assets related to Ukraine recorded in the balance sheet. In relation to US trade tariffs the effect seems to be limited. Following the landing obligations introduced in UK/Scotland a part of the raw material historically landed in Norway by UK/Scottish vessels now partly must be landed in Scotland. It has been decided from the Scottish Government that this landing obligation will increase furher to 70% for 2026. This increases the competition between the Norwegian bidders for raw material. Pelagia is present with factories in both markets, so it is probably more challenging for companies located only in Norway.
The FEED division has a decrease in raw material volume in Q2 2026 vs Q2 2025. This is mostly explained by a reduction of the Blue Whiting quota. As for 2025 the Capelin quota is zero and the quota for Sand Eel is still low. With lower quotas in the North Atlantic and the effect of El Niño in the Pacific we expect high prices for fish meal and fish oil through 2026.
The market demand for the HEALTH division products has remained sound also into 2026 and with increased prices we expect better margins for the HEALTH division in 2026. The effect of the current El Niño will probably increase raw material prices going forward which adds some uncertainty to the Omega-3 market for 2027.
The Group's ability to utilise its production capacities depends on the supply of raw materials in the North Atlantic and thus the size of the global quotas that are distributed between the countries which have a share of these fish resources. The prospects for the fisheries on which the group bases its operations in total remain stable long-term. Still, short-term there can be variations in quotas and the available raw material due to fluctuations in nature. This will be situation in 2026, where quotas will be reduced. The long-term goal of Pelagia is to favour the sustainable management of the main fish stocks. At the moment Pelagia does not see a significant climate risk that should affect the fisheries and the related value of its assets. Still, long-term it could be a risk that the fisheries in the North Atlantic are impacted by climate changes.
In common with many other companies, Pelagia can also be impacted by changes in trade tariffs and other trading obstacles following the more uncertain economic and geopolitical environment developing into 2026. The effect of the US trade tariff has so far been limited.
Pelagia has decided not to pay any dividend based on the Annual Report for 2025.
No other events have occurred after the balance sheet date that have had a material impact on the presented quarterly report.
We declare in good faith that the half-year financial statements for the period 1 January to 30 June 2026 have been prepared in accordance with IAS 34 - Interim Financial Reporting and that the information in the financial statements gives a true and fair view of (the company's and) the group's assets, liabilities, financial position and results as a whole. We also declare, to the best of our knowledge, that the half-yearly report provides a true and fair view of significant events in the financial period and their influence on the half-yearly financial statements, the most important risk and uncertainty factors the group faces in the next financial period and significant related party transactions.
For further information see attached the Q2 and 1H 2026 Financial Report
For any questions, please contact:
CEO Egil Magne Haugstad emh@pelagia.com CFO Rolf Andersen ran@pelagia.com
See www.pelagia.com for further information about the company.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act
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