Storms delay Gigante Salmon project and may raise costs

The company said in an Oslo Stock Exchange announcement today that during the third quarter it had reported an estimated capital expenditure per kilogram of biomass of up to NOK 65 [£4.68]. The figure is based on expected production of 16,000 tonnes.

The weather in the north of the country has been pretty rough over the past couple of months.

The announcement continued: “Due to a prolonged period of bad weather, installation of surface cladding on floors has not been possible, and completion of production pool 2 has been delayed.

“This has also affected the progress of production pool 1 somewhat. Delays will normally result in increased costs. The company is in the process of assessing progress and costs further to the delay.

“An updated cost estimate for Q4 reporting is not expected to be presented, but costs are expected to be gradually reduced in the final phase of the development project in Rødøy.

It added: “The company’s assessment of costs for the project as a whole is that they will increase somewhat from the estimate in the Q3 reporting, but be within established financing.”

Gigante Salmon is a land-based salmon farming company with its first production facility under construction at Lille Indre Rosøy in Rødøy.

The company’s aquaculture concept is based on a flow-through system, combining the benefits of conventional and land-based aquaculture while eliminating issues associated with conventional, sea based, farming.

The largest owner in Gigante Salmon is the family company Gigante Havbruk established by Kjell Lorentsen who still leads the business. It has been producing salmon since 1988.