Results for the second quarter and first half 2024
HIGHLIGHTS
- Second quarter harvest of 523 tonnes HOG with an average weight of 4.54 kg HOG and superior rate of 99%
- Average sales price EUR 8.94 / kg HOG in Q2
- Geosmin issue in July, continuing into Q3 causing lower turnover and significant reduced harvest in H2/24
- Excluding the geosmin issues, good operational and biological performance for all batches
- Excellent fish health and welfare
- Q2 biomass production of 1,014 tonnes. Total biomass of 2,432 tonnes by quarter end
- Strengthened commercial and operational organisation
- Available liquidity of EUR 10.4 million as of 30.06.24
- Due to reduced harvest and CAPEX related to geosmin, additional equity financing of approximately mNOK 250 will be raised
- All primary insiders that are large shareholders and have access to this information (Kontrari AS, AKVA group AS, Aino AS and Maringto AS) are supportive to the company and have all indicated to contribute to its funding needs going forward.
Nordic Aqua carried out its first commercial harvest of Atlantic salmon from the Gaotang facility in April. An incremental increase in harvest volume throughout the second quarter ended in a cumulative harvest volume of 523 tonnes HOG for the period. The mortality and the quality of the fish were good, and the average sales price achieved ended at EUR 8.94/kg HOG.
Commenting on the development, CEO Ragnar Joensen, said:
“I am pleased that our pioneering business got off to a good start. In the first operational quarter of our start-up year, we increased sales month-by-month and produced Atlantic salmon at a superior rate of 99 percent. Unfortunately, we were unable to follow up on this development at the start of the third quarter, and we must make certain adjustments in production to making us more robust in the future. As a result, there will be changes to our harvesting schedule and sales in the second half of 2024.”
In July Nordic Aqua detected high concentrations of geosmin which is a naturally occurring compound known to be absorbed by fish in all recirculating aquaculture systems (RAS). Although it is harmless to both fish and humans, it can, in elevated concentration, negatively affect the taste of the fish. Immediate and long-term solutions are being implemented, and further corrective actions are under implementation, to ensure a permanent solution during 2H Consequently, there will be delays in harvesting, and Nordic Aqua expects limited or no harvest in the third quarter.
“We are monitoring the situation closely and we have a good understanding of what we need to do. However, effects from actions taken will take somewhat longer than previously anticipated and will thus affect production and limit production in the third quarter. However, we see no need to change the production plan for 2025”, Ragnar Joensen commented.
OUTLOOK
While the geosmin issue is currently being addressed, the current situation leads to a delay in the realization of anticipated revenue and a temporary impact on the company’s cash flow which has prompted a comprehensive review of Nordic Aqua’s capital requirements. To ensure continued execution of strategic initiatives and to maintain operational stability, Nordic Aqua is in an advanced stage of securing necessary financing.
The management of Nordic Aqua remains confident in the underlying strength of the company’s business model creating long-term value for its shareholders.
For further information please contact:
CEO Ragnar Joensen ragnar@nordicaquapartners.com +298 599 112
CFO Tom Johan Austrheim tom@nordicaquapartners.com +47 98 20 98 73