Norwegian land-based salmon farmer Gigante Salmon has released its results for the third quarter of 2023, looking back on a mixed quarter of construction delays but success in securing additional funding.
The company is constructing a flow-through salmon farming site on Lille Indre Rosøy in Nordland, just north of the Arctic Circle, with a yearly production capacity of up to 16,000 tonnes HOG.
Currently Gigante Salmon is still in Phase 1 of the project, building a grow-out facility for smolt of up to 1kg.
The smolt facility was originally due to be completed during Q3, with the first smolts delivered during September 2023.
However, the project has suffered delays due to a variety of "unforeseen incidents", the company notes.
These include "weather-related shipping delays, transport, and installation of risers (seaside), as well as practical issues occurring during preparation of the technical area,” the report read.
The smolt facility is now expected to be finished during Q4 2023. However, Gigante Salmon notes: "There is no flexibility in the installation plan for the outstanding activities; the further implementation of the project is therefore contingent upon weather, realistic planning and the length of time work takes to complete."
However, it was not all bad news in Q3, CFO Rune Johansen noted. Gigante Salmon held a successful private placement on 11 October, which was fully subscribed with gross proceeds of NOK 200m (USD 17.9m / EUR 16.9m) at a share price of NOK 7.20. The financing will be used to cover working capital needs for the build-out.
All in all, the company raised NOK 300 million by mid-October, enabling it to "cover increased capex, strengthen working capital and establish a capital buffer", according to the Q3 report.
During Q3, Gigante Salmon's operating costs were NOK 652,000 (USD 58,400, EUR 55,200), a reduction compared with last year's Q3, where it registered costs of NOK 707,000 (USD 63,400, EUR 59,800). Total investments in the third quarter rose to just over NOK 385m (USD 34.4m / EUR 32.6m), compared with NOK 260M (USD 23.2m / EUR 22m) in Q2.
“We are leaving a content-rich quarter behind us, particularly financially. Strengthened financing ensures that we can complete the plant at Lille Indre Rosøy with increased quality and robustness,” Johansen said.