Atlantic Sapphire breaches loan terms as losses mount
Florida land-based salmon farmer Atlantic Sapphire saw its losses more than triple during the first half of this year.
The company’s 2023 half year report also shows that the company is in breach of its loan terms, as a result of its financial performance.
Now Atlantic Sapphire has engaged DNB Markets and Arctic Securities to explore potential funding routes in this respect, to ensure a sufficiently large cash buffer.
The company has also restricted expenditure on Phase 2 of its Florida facility, which looks likely to slow the project’s progress.
Half year revenues fell from US $9.7m (£7.76m) in 2022 to $8.1m (£6.48m) .
The operating loss or EBIT was $43.7m (£35m) against $12.3m (£9.84m) in H1 last year. The results before and after tax show a loss of $48.4m (£38.7m) , up from $14.5m (£11.6m) a year ago.
Main points from the half year report include:
- Focus on heavy infrastructure upgrades and operational improvements, with approximately 2,100 tonnes (live wight) of gross biomass gain and harvest volume of 870 tonnes (gutted weight);
- decrease in revenue driven by lower volume, partially offset by higher sales prices;
- consistent price achievement of $12 per kg HOG on premium fish – increase in overall cost per kg of biomass produced compared to H1 2022;
- internal reorganisation of the company initiated, to streamline the organization and strengthen operational resources;
- Phase 2 construction at the US site is currently focused on design and optimising quality and cost of the project, limiting actual capital expenditures for the project to a minimum; and
- extension of the debt facilities with DNB to April 2025 and successful completion of a $55m (£44m) private placement.
Three weeks ago Atlantic Sapphire disclosed that due to higher water temperatures the company was experiencing lower than expected biomass growth in the current (third) quarter, which is likely to lead to lower revenues in the second half of the year.
