Norcod revenues soar – but so do losses

Norwegian cod farmer Norcod saw its revenues rise by a thumping 229% during the third quarter this year – but it also recorded an 80% plus increase in its operating loss.

The company said the financial results for the July to September period were impacted by the marine heat wave and unusually high temperatures during the summer.

Extraordinary mortality related to these factors is quantified at NOK 23 million (£1.6m) as a non-recurring item.

Revenues and harvests soared, however – up from NOK 40 million (£2.8m) last year to NOK 69 million (£4.9m) this time.

The export harvest jumped from 146 tonnes a year ago to 1,348 tonnes in Q3 this year.

Norcod said the heatwave was challenging for Norcod and other fish farmers, with reduced feeding and consequently limited growth, as well as increased mortality.

The situation led to a change in harvesting plans to ensure fish welfare, which in turn resulted in lower harvesting weight.

It also said that based on expected positive developments in sales prices and production costs, the company expects significant improvements in financial results in the final quarter of this year.

During that period Norcod will assess and develop a revised growth strategy in line with market demand at favourable sales prices.

And it also expected positive cash flow from operations in the first quarter of next year and throughout 2025.

On the financial side Norcod said operating expenses ended at NOK 142 million (£10m), up from NOK 49 million (£3.4m) in Q3-23. The increase is mainly explained by higher harvest volume compared to the corresponding quarter last year.

Production cost per kg decreased from 79.3 NOK (£5.64) per kg WFE (whole fish equivalent) in Q3-23 to 56.0 NOK (£3.98) per kg WFE in Q3-24.

The company has also implemented measures to focus resources in key areas, improve the company’s financial performance, streamline operations and develop a more efficient and commercially oriented business.