Gigante Salmon, the company constructing a land-based salmon farm in Lille Indre Rosøya, Norway, has revised its timeline after delays forced the company to postpone releasing smolts past its original date.
The company is building a flow-through salmon aquaculture system, which it recently announced faced a cost increase due to general cost increases and planned changes to improve fish welfare. In its Q3 2023 update, the company announced other delays are forcing it to postpone the release of smolts into the facility after it missed its September deadlines.
“The reason for this is delayed to the implementation plan caused by unforeseen incidents, including weather-related shipping delays, transport, and installation of risers (seaside), as well as practical issues occurring during preparation of the technical area,” the company said.
In its operational review, the company said that progress on production basin 3 was somewhat delayed, but the floors and drainage channels are now complete.
The outstanding activities still to come, Gigante Salmon said, have “no flexibility” and are contingent upon the weather. While it said there are no reports of critically delayed deliveries of materials or equipment, and that the most important parts of the construction can proceed as planned, Gigante Salmon added the project “must remain realistic” and be prepared for delays and situations affecting its progress.
The company’s financial update said it once again had no revenue given its current status, and that operating costs in Q3 2023 were NOK 652,000 (USD 58,400, EUR 55,200), down from NOK 707,000 (USD 63,400, EUR 59,800) in the same quarter of 2022. Year-to-date the company has had just under NOK 3 million (USD 269,000, EUR 254,000) in operating costs, up from NOK 2.84 million (USD 254,500, EUR 240,500) it had in 2022.
The company also said it strengthened its financing significantly in the quarter. The company secured funding for projected cost increases, and according to its Q3 update, Gigante Salmon has increased its financing by NOK 300 million (USD 26.8 million, EUR 25.4 million).
“We are leaving a content-rich quarter behind us, particularly financially. Strengthened financing ensures that we can complete the plant at Lille Indre Rosøy with increased quality and robustness,” Gigante Salmon CFO Rune Johansen said.
Looking forward, the company said that production costs are expected to increase, largely due to supply chain disruptions caused by the Covid-19 pandemic and Russia’s invasion of Ukraine, but added that its production costs will still be competitive and that the increased costs it is incurring now will pay off down the road.
The company believes that the increased investment will result in a better breeding facility with a focus on operational stability, biosecurity, and fish health,” Gigante Salmon said.
Photo courtesy of Gigante Salmon
