Gigante Salmon’s land farm costs jump by £15m

Gigante Salmon’s new land based salmon farm at Rødøy, in Norway’s Nordland, is going to cost around NOK 200 million (£15m) more than originally planned, the company has reported.

The news led to a 14% drop in Gigante’s share price on the Oslo Euronext Growth exchange yesterday.

The company said a stock exchange statement: “After this increase, the total investment amount for the construction work in Rødøy up until completion of the production site is estimated to amount to approximately NOK 645 million (£48m).

“The cost increase is caused by general price increases, as previously communicated, in particular within electric power, in addition to changes that the company intends to make to secure fish welfare and accommodate sustainable production.”

Gigante said the increase will be covered through a combination of equity and debt financing, adding that further information will be given at the next quarterly presentation on 24 October. There will also be more detailed information on financing.

CEO Helge EW Albertsen said: “Our key priority is the wellbeing of our fish at our facility. Gigante Salmon is currently in the process of completing the first production pool and expects to have water in the facility from the start of October.”

The company added that the first smolt release is expected to take place in Q4 this year, later than the previously announced September to October release.

Albertsen said: “This will lead to production starting with a larger smolt and will not change the progress plan, with the first fish ready for slaughter at the end of 2024. No change in production volume is expected.”