Are Hammervik Strand, Nordic Halibut's new interim CFO.
Photo: Nordic Halibut
Nordic Halibut AS has successfully completed a private placement funding round, securing gross proceeds of NOK 285 million from its existing shareholders.
Announcing the financial move in a stock exchange notification, the halibut farming company said the funds raised will support key investments, including NOK 70 million for increased CAPEX at its Tingvoll production facility, a further NOK 30 million for design improvements at the facility, and NOK 45 million to address the company's increased operational expenses due to inflation, particularly feed costs.
Additional proceeds will be allocated toward general corporate purposes, including working capital and strengthening the company’s capital buffer, Nordic Halibut indicated.
The halibut farming company allocated 14,250,000 shares at a subscription price of NOK 20 per share, with Pareto Securities AS and SpareBank 1 Markets AS acting as joint managers and bookrunners for the placement.
Nordic Halibut has also announced it has appointed Are Hammervik Strand as its Interim Chief Financial Officer, due to take office on 3 February 2025.
The company said in December that its previous CFO, Thomas Scheele Berg, would be stepping down. At the time, Nordic Halibut said it would "explore short-term interim solutions that enables a seamless transition until a permanent CFO is appointed," and that Berg "will support and co-lead the CFO function until the end of February".
Strand was previously CFO at Pure Norwegian Seafood AS, and brings over seven years of expertise in the seafood industry, financial management, and auditing.
"The appointment ensures strong continuity and a secure transition of the CFO role at Nordic Halibut. Strand brings extensive and diverse experience in aquaculture and finance, a valuable combination for Nordic Halibut," said Nordic Halibut CEO, Edvard Henden.
In its operational update for Q4 2024, Nordic Halibut reported improved prices and sales, achieving an average sales price of NOK 183/kg HOG, a 12% increase compared to the same quarter in 2023. The full-year 2024 average sales price stood at NOK 167/kg, up from NOK 161/kg in 2023.
The price increase was supported by improved sales across all size categories and a higher average harvest weight of 6.3 kg HOG for the quarter, the company said. Sales revenue for Q4 2024 totaled NOK 31 million, with a harvest volume of 171 tonnes HOG. For the full year, the Company recorded NOK 90 million in revenue and 539 tonnes HOG in harvest volume.
The halibut farming company's biomass grew by 13% during Q4 2024, net of harvest, reflecting a robust production pipeline. Including harvested amounts, total production at sea represented a 21% increase in biomass during the quarter.
However, Nordic Halibut faced challenges earlier in 2024, including the delay of one of three planned production batches for fish released to its sea facilities, resulting in a lower-than-expected release of 500,000 fish instead of its target of 1 million. In its update, the company said it anticipates a "catch-up effect" in 2025, with a target of 1.2 million fish.
