Norwegian cod-farming company Norcod reported increased revenues and lower operating losses in Q2 2024.
The company posted NOK 86 million (USD 8.2 million, EUR 7.3 million) in revenue in the quarter, up 121 percent from the NOK 39 million (USD 3.7 million, EUR 3.3 million) it posted in Q2 2023. The revenue came as the company harvested 1,830 metric tons (MT) of whole fish equivalent (WFE) cod in the quarter, up 76 percent from the 1,038 MT it harvested in Q2 2023.
Those harvests came with a production cost at sea of NOK 47.60 (USD 4.53, EUR 4.07) per kilogram, down from NOK 77.40 (USD 7.37, EUR 6.62) per kilogram in Q2 2023. Operating expenses increased to NOK 133 million (USD 12.7 million, EUR 11.4 million) in Q2 2024, up from NOK 111 million (USD 10.6 million, EUR 9.5 million) in Q2 2023.
Overall, the company ended up posting an operating loss of NOK 47 million (USD 4.5 million, EUR 4 million), a 34 percent improvement compared to the NOK 71 million (USD 6.8 million, EUR 6.1 million) in losses the company posted last year.
“The company has initiated measures to focus resources in key areas, improve the company's financial performance, streamline operations, and develop a more efficient and commercially oriented business,” Norcod said.
The 1,830 MT of harvest was split between multiple sites, with 175 MT coming from the company’s Frøya site, while 1,655 MT was harvested at Ibestad through a joint venture with Kime Aqua – which owns and operates the farming sites.
According to Norcod, the company has continued to see the market for farmed cod improve even as it increases and optimizes its production.
“Over the last 12 months, we have seen a gradual increase in average sales prices, albeit with fluctuations in periods,” the company said.
Norcod said it has won multiple contracts at “considerably higher price points in selected markets” and has received positive feedback from its customers on the products it has delivered so far.
“There is a general increase in demand for seafood in many of our markets,” the company said. “This, along with the significant drop in wild cod quotas, will result in a lack of available raw material in the coming quarters.”
Norcod said its top priority is to achieve profitability at the current annual production level of roughly 10,000 MT, which will require it to refine its cod biology and step up its efforts to market its farmed cod.
Norcod said it is working to position its product into a ...
