Nordic Aqua Partners project facilities. Photo by: Nordic Aqua.
Nordic Aqua has presented its results for the second quarter of 2023 (2Q2023) which, as CEO Ragnar Joensen described, has been "eventful" for the company. Plans for the time being continue to go ahead, and the first harvest is expected at the end of the year, coinciding with the first quarter of 2024.
Everything points positively to what would be the first local producer of Atlantic salmon in the Chinese market. Thus, among the company's main milestones were financial results, changes of address, and capacity expansion in Phase 2 of the company. A period with numerous changes have occurred.
The company explained that with the expansion of capacity in Phase 2, they have decided to perform some maintenance on Phase 1 smolt production. The company expanded Phase 2 capacity, leading to a delay in Phase 2's first egg set by approximately 6-8 weeks. This shift moved the production start from Q4-23 to Q1-24.
When Phase 2 construction completes in 2025, it will result in an annual total capacity of 8,000 tons. Furthermore, in connection with the phase expansions, some of Nordic Aqua's research points to a potential accelerated growth to 20,000 tons (Phase 3) by 2027, which is currently underway.
"As we approach the time for the first harvest, we now participate actively at different seafood exhibitions in China to meet potential customers. In line with the increased marketing activity, we are now also more actively pursuing recruitment of sales personnel and recently a sales manager also came into place," said Joensen.
Starting from the third quarter of 2023, Nordic Aqua has relocated its headquarters from Denmark to Norway. The company also clarified that it still maintains its listing on Euronext Growth Oslo. This re-domiciliation is an assessment made by the company, as explained by Joensen, "to make the stock more appealing to investors."
Hence, the essence of the company remains intact, although in financial terms, it seeks to maximize market and investment opportunities.
In summary, Nordic Aqua faced operating losses in both the second quarter and the first half of 2023, primarily due to the absence of operating revenues. They managed their financial position through external financing and have confidence in their liquidity for the upcoming year.
In the second quarter of 2023, Nordic Aqua did not generate operating revenues. They reported additional operating revenues of DKK 622,000, mainly from other services. Furthermore, the personnel expenses increased to DKK 4.1 million, primarily due to organizational expansion and increased production. Other external expenses, principally related to production costs, amounted to DKK 5.1 million. Consequently, their operating profit for the quarter was DKK -9.2 million.
Nordic Aqua Partners pioneers land-based salmon farming in China, delivering fresh Atlantic salmon to millions of consumers within hours. The company leverages cutting-edge technology and extensive expertise to establish the inaugural fully integrated and commercially scaled RAS farm for Atlantic salmon in Ningbo, China. Commencing construction in Q2 2021 and initiating the first inlay of Atlantic salmon eggs in March 2022, the company aims to achieve its first harvest in Q1 2024. Nordic Aqua is strategically positioned to supply fresh, locally sourced Atlantic salmon to about 100 million affluent Chinese consumers within a 5-hour radius. Additionally, it aims to reach a total of 1.4 billion consumers within 24 hours, making it the leading domestic supplier of Atlantic salmon to the Chinese market.
