Nordic Halibut has achieved an optimal biological performance and reached an increase of 26% over the previous year thanks to market conditions and increased harvested weight in its Q1 2023 interim report. Moreover, their strategic plans are on track and exceeding expectations, showing a solid outlook for the 2023 financial year.
In the first quarter of 2023, Nordic Halibut recorded an impressive average selling price of NOK 169/kg, a significant year-on-year increase of 26%. This remarkable growth suggests strong potential for further price increases in the farmed halibut market.
Most notable is that the Norwegian farmed halibut exports in the first quarter of 2023 achieved prices approximately 50% higher than those of wild-caught halibut. A fact that highlights the increasing value being achieved.
One of the company's objectives is to maximize the utilization of harvestable biomass to establish a strong market presence and achieve optimal prices. As part of this strategy, the company explained that it intends to effectively utilize available harvestable biomass to prioritize price achievement and maintain a successful market presence. Therefore, the plan is to make a periodic reallocation of harvest volumes in the coming periods to support commercial priorities. However, this four-month period has exceeded expectations.
Thus, Nordic Halibut successfully harvested 249 tons (224 tons HOG -Head-On Gutted-) of halibut. Moreover, of the harvested volume, 75% exceeded 5 kg HOG. In doing so, the company took advantage of favorable market conditions and strategically utilized biomass that had reached harvestable size, resulting in optimized revenues. Total revenues for the first quarter of 2023 amounted to NOK 38 million, representing an impressive year-on-year increase of 104%.
Nordic Halibut explained in its report that the company's main competitive advantage is its dedicated breeding program. This program has been developed over decades and resulted in a unique genetic base. As a result, halibut have been achieved with better growth, lower mortality, and shorter production times. Therefore, the company has strengthened its research and development team by adding people to the staff.
The company is now in a solid position to achieve its long-term production targets. The proven development in biological performance and technological scalability lay the foundation for improved production towards the targets set for 2026 and 2030.
Nordic Halibut AS is one of the world's leading producers of farmed Atlantic halibut, specifically sushi-grade. This Norwegian company has licenses to produce 4,500 tons per year of Atlantic halibut and continues to increase the numbers. This is thanks to its methodology that allows the product to be available fresh on ice all year round and is not dependent on seasonal changes.