Mowi Commits to Ongoing Opposition as Norway's Salmon Tax Takes Effect

Mowi stands in its opposition to Norway's newly enacted aquaculture resource rent tax—a sentiment strongly echoed by CEO Ivan Vindheim.

Presenting Mowi's impressive Q2 2023 results in Oslo on August 23rd, Vindheim expressed disappointment in the parliamentary decision, emphasizing its costly aftermath, halting investments of NOK 40 billion (about USD 3.7 billion, EUR 3.5 billion) across the industry.

Yet, Vindheim affirmed Mowi's unyielding determination to combat the tax, labeling it a "last-minute compromise with a slender majority." He aspires to sway Norway's 2025 elections for a more business-friendly governance. Mowi's commitment extends to exploring legal countermeasures, a stance Vindheim reiterated.

The introduced tax—a 25 percent aquaculture rent tax on salmon farming, effective since early 2023 during the crucial seawater growth phase—incurs an additional 47 percent combined with corporate taxes for Mowi and other major salmon players. However, the tax narrowly targets biomass within sea cages. Responding proactively, Mowi, headquartered in Bergen, Norway, initiates a strategic tax optimization effort to mitigate this impact.

As Mowi and the authorities finalize the implications of the tax, CFO Kristian Ellingsen acknowledged the uncertain effect on H1 earnings, leading to the omission of estimates from Q2 results. Nevertheless, Ellingsen noted a noticeable EUR 0.06 (approximately USD 0.07) impact on earnings per share in Q2. Despite the tax, Norway remains one of the top countries known for high-quality salmon, and the increasing quota seems to have had little effect on the country's export.