Gigante Salmon, the company building a land-based salmon facility in Lille Indre Rosøya, Norway, said it is on track to release smolt into its facility this fall.
In the company’s Q2 2023 results, it reiterated it is still in the development phase, which means revenue is low. The company said it saw revenue of just NOK 28,000 (USD 2,728, EUR 2,489), compared to operating costs of NOK 870,000 (USD 84,800, EUR 77,300) in the quarter. Overall, the company lost NOK 842,000 (USD 82,000, EUR 74,900) in the quarter, and has lost NOK 2.04 million (USD 198,800, EUR 181,400) so far in 2023.
As of 30 June, the company’s total liquid assets reached NOK 155 million (USD 15.1 million, EUR 13.7 million), and Gigante Salmon Rødøy AS has NOK 50 million (USD 4.8 million, EUR 4.4 million) on hand “set aside for working capital,” the company said. Long-term financing for the company’s development worth NOK 204 million (USD 19.8 million, EUR 18.1 million) has been secured from Sparebank1 Nord-Norge, the company said.
Total investments in the group in Q2 increased to NOK 260 million (USD 25.3 million, EUR 23.1 million), up from NOK 165 million (USD 16 million, EUR 14.6 million) in Q1 2023. Gigante Salmon added that its financial position is “good” and that it is able to pay short-term debt using its most liquid funds.
In its Q2 2023 report, the company said it is well no its way to establishing the land-based salmon facility on schedule. Overall highlights during the quarter, it said, include executing rockfill at the site for foundations, production of concrete walls for basin three nearing completion, electrical containers for power-distribution are fabricated and ready for delivery, pipelaying for intake pipes is ongoing, and oxygen systems for the start of production have been completed and delivered.
“There are a number of activities related to the project that must be completed before start-up, and, in the coming period, good planning and management and prioritization of outstanding work will be crucial,” the company said. “Some activities must be completed sequentially, while others can be worked on concurrently.”
At the current rate of progress, Gigante Salmon said it expects to release the first smolts into the facility within three months.
“This project has been object for planning and execution through several years, and we are pleased to see that the effort is now taking shape,” Gigante Salmon CFO Rune Johansen said in a release. “At this moment we are really looking forward to starting production this autumn, with 1.1 million smolt released in the facility.”
Phase one of the facility, Gigante Salmon said, will be capable of producing 6,350 metric tons (MT) of whole fish equivalent (WFE) salmon, or 5,300 MT of head-on gutted (HOG) salmon, at an average production cost of NOK 38 (USD 3.70, EUR 3.37) per kilogram of salmon. The company is planning to eventually reach 19,050 MT of WFE production per year, equating to 16,000 MT of HOG salmon.
While progress at the site has been steady, the company acknowledged that it has faced certain challenges. Cost increases and challenging delivery times have impact the project and the company said it is working with suppliers on cost-reduction measures that “do not affect the health and well-being of the fish to be raised in the facility.” The company added that some contract disputes for construction items from Q1 – like the prefabrication, installation, and delivery of risers – have since been resolved, with contracts now signed.
The company said it expects the installation of shore power facilities to be completed in mid-August, and that establishment of production basin three has been “according to plan.”
Photo courtesy of Gigante Salmon
