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Nordic Aqua reports Q3 loss amid geosmin challenges, eyes future growth
November 25, 2024 By RAStech staff
Nordic Aqua reports Q3 loss amid geosmin challenges. (Photo: Nordic Aqua) Nordic Aqua has said it experienced negative results in its third quarter. The company’s operations during the third quarter were impacted by previous cases of elevated geosmin levels.
The company experienced an increase in geosmin levels in July 2024 which continued into Q3 2024 and caused lower turnover. As a result, the Atlantic salmon farmer did not have any commercial harvest in the third quarter. It took out 651 tonnes of biomass in the quarter to optimize stock.
Notwithstanding, Nordic Aqua has a Q3 2024 biomass production of 1,005 tonnes and a total biomass of 2,786 tonnes, which is satisfactory because of the reduced feeding due to geosmin.
The company recorded good underlying operational and biological performance for all batches. Fish health and welfare were good, and mortality rates were low.
“We are encouraged by the progress made in recent months and are pleased to see the resilience of our operations as we rebound from the geosmin setback. With rigorous measures in place and strengthened biological performance, we are now positioned to continue expanding our Nordic PureAtlantic brand in the Chinese market,” said Ragnar Joensen, CEO of Nordic Aqua.
The company is continuing with the construction of the farming operation of Stage 2 as planned. Extra capacity for hatchery, start-feeding, parr unit and smolt unit are finished and operational and the first egg inlay was successfully completed in September.
It also completed a private placement raising new equity of NOK 350 million (US$31 million) in September. Combined with the company’s agreement with the Bank of China, this will secure funding through the completion of Stage 2 in addition to repayment of short-term debt, CapEx related to geosmin improvements, working capital and other general corporate purposes.
“We are well underway with the buildout of Stage 2, which will double our capacity to 8,000 tonnes. The technical installations are expected to start in January 2025 with first harvest scheduled for the second half of 2026. Preparations for Stage 3, expanding capacity to 20,000 tonnes are ongoing, and a final decision on the timeline will be made during H1 2025,” Joensen added.
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