Norcod on target despite Q3 loss

DESPITE a much larger turnover the fish farming company Norcod has reported a third quarter loss.

The figure emerged at a net loss before tax of NOK 8.6m (£748,000) against a pre-tax profit of NOK 10.2m (£886,000) in Q3 2020.

The turnover was NOK 15.9m (£1.38m), a vastly significant increase on NOK 0.40m this time last year.

However, it should be noted that new aquaculture businesses are often saddled with high start-up costs and relatively low sales because full production has yet to be achieved.

However, output is starting to pick up and during the three months July to September, Norcod harvested 345 tonnes.

The company is now on target to deliver 5,000 tonnes in over the coming months with the first production likely to be completed by the end of March next year.

A total of 2.4 million fish were transferred into the sea at three locations in in Meløy and Frøya during the summer. Norcod says the operation was successfully completed at the beginning of July with the fish behaving calmly throughout the process.

They immediately started to take up feeding and are showing good growth and survival rates .

Norcod’s Q3 report said: “Production volume from the first cycle of sea placements will reach 5,000 tons, however due to high sea temperatures during the summer 2021, our sea production has progressed at a slightly slower pace, consequently extending our harvest plan a further two months.

“Our first production cycle is expected to be fully harvested by the end of the first quarter 2022. Preparations for Norcod’s third round of transferring juveniles to land-based growth facilities are well under way.

“This batch of seventh generation juvenile cod from the company’s joint venture partner, Havlandet Marine Yngel AS, is scheduled to go into sea phase in spring 2022, after starting their growth phase during Q4. “

And two new feed barges equipped with waterborne feeding technology are expected to be delivered and operational next month, in addition to the arrival of the new hybrid-electric service vessel.

Both barges and the vessel are key components in the company’s sustainability strategy to enhance operational efficiency and lower production emissions.