Cod farmer to carry out strategic review of business

Norwegian cod farmer Statt Torsk has announced it is to carry out a strategic review of its business.

The company said in a stock exchange announcement that it will involve a whole range of alternatives.

It is expected to include financing, structural and business development. In general, Statt Torsk is looking at solutions to get short-term working capital in place.

Last week Statt Torsk blamed high mortalities and production issues for producing a loss this summer.

The company said the problems are likely to cost it up to NOK 12m (£920,000). It described the increase in mortality at its Stokkeneset location in the north of the country, which occurred during June and July, as “temporary”.

The Oslo Stock Exchange announcement said: “The Board of Directors of Statt Torsk ASA… has resolved to initiate a strategic review to explore options for the company to optimise shareholder value and to secure financing.

“In connection with the strategic review, the board has appointed Pareto Securities and Sparebank1 Markets as (financial).”

It adds: “With the support of the financial advisors, the company will explore a broad range of strategic alternatives, inter alia, financing, structural, business development opportunities, or combinations of these, and short-term working capital financing in general.

“No assurances can be given as to the outcome or timing of the review process. The company does not intend to make any further public comment regarding the review until it has been completed or the company determines that disclosure is required or appropriate.”

The full second quarter results will be announced on 18 August.