Gigante Salmon has presented its 2Q 2023 results in which it has shown deep progress in the construction of its facilities in Lille Indre Rosøya, Norway, for which there are still several preparations to be made before the project starts to be on track that explains the company's low revenues for this financial period.
For 2Q23, the company explained concerning the Project that the "situation concerning cost increases and challenging delivery to meet the timelines for the power-related elements of the project remains as described in the Q1 report." However, it also explained that it was one of their focus areas and that they continue to work on it.
The group is in a healthy financial position, able to pay short-term debts with its liquid funds. Total equity increased to NOK 454,783 from NOK 277,191 (EUR /USD) in the same quarter last year. Equity represents 61% of the total, compared to 98% last year.
What is clear is that there is no doubt that the costs of the size of a project of these characteristics, in addition to the fact that at the balance sheet date, three months remained until the smolts were released in the first part of the installation. Therefore, for the moment, the income does not equal the expenses.
In the second quarter, the company had operating costs of NOK 870, up from NOK 798 last year. However, they had an operating loss of NOK -842 due to changes in revenues and expenses.
Long-term debt is 20% of equity, and they are financing the project in Rødøy with a loan of NOK 204,000, backed by a 50% guarantee issued by Eksfin. So far, they have used NOK 147,644 of that loan.
Gigante Salmon Rødøy AS, a subsidiary of Gigante Salmon AS, is spearheading the aquaculture industry in Rødøy Municipality. With a production permit for 13,731 MTB salmon in Lille Indre Rosøy, their cutting-edge facility is currently under construction and set to receive its first fish in the latter half of 2023.
Gigante Havbruk AS, a member of the Gigante Salmon family, actively holds a majority stake of 61%. They focus on smolt and salmon production, while also conducting research and development specific to salmon. Kjell Lorentsen founded this family-owned company in 1988, and it maintains control over the complete salmon value chain. Headquartered in Bodø, the company strategically operates primarily in the Salten and Helgeland regions.
