Land-raised salmon company Atlantic Sapphire ASA, together with its subsidiaries, harvested a total volume of approximately 400 tonnes of head-on-gutted (HOG) fish in the three months that ended 30 June 2023. This was in line with the last guidance given in April 2023.
In a filing with Oslo Børs, the onshore producer advised that its preliminary estimated revenues for the first-half of 2023 revenue is approximately US$ 8 million, while its adjusted EBITDA (pre-fair value adjustment on biological assets) of around USD -34 million is also in line with expectations.
“However, lower than expected biomass gain in Q3 2023 to date, primarily due to elevated farming temperatures and its consequences for overall water quality, has resulted in a lower standing biomass than earlier estimated,” it stated.
Standing biomass at the end of July 2023 was estimated at 2,700 tonnes RLW (live weight). As such, more water chillers will be installed to ensure sufficient capacity at peak demand for cooling and the company expects the temperature issue to be solved in Q3 2023.
“All else equal, this indicates a lower biomass gain and revenue in H2 2023 compared to what the company expected,” it said.
Atlantic Sapphire has been operating its innovation centre in Denmark since 2011 with a strong focus on R&D and innovation to equip the company with the technology and procedures that will enable it to commercially scale-up production in end-markets close to consumers.
In the US, the company identified and obtained the requisite permits to construct its Bluehouse production technology in Homestead, Florida. It has completed Phase 1 construction, which provides the capacity to harvest approximately 10,000 tonnes (HOG) of salmon annually. The first commercial harvest was completed in September 2020.
Atlantic Sapphire is now constructing its Phase 2 expansion, which will take the total annual production capacity to 25,000 tonnes. It has a long-term targeted harvest volume of 220,000 tonnes.
