In its 18 months of existence, Norwegian cod farming company Norcod has become a success story, and reports indicate it's in a strong position after its first full year of operations.
“We have worked incredibly hard during the establishment phase, applying for licences, securing sea sites and creating an entire value chain for farmed cod from broodstock to market-ready product,” Norcod CEO Christian Riber said in a release.
Riber took over as CEO in late 2020, with the previous incumbent, Hilde Storhaug, becoming Norcod’s chief sustainability officer. At the same time, Marit Solberg stepped up as the new Board Chairman.
“We have a great product, massive, combined industry expertise, and the backing of seasoned industry investors. 2021 should be a great year,” Riber said.
Norway Royal Salmon Chairman Helge Gåsø, a Norcod investor since January 2020, acquired an additional 250,000 shares on 31 December, making him one of the company’s leading shareholders.
Riber said in the fourth quarter of 2020, Norcod had seen exceptional biological performance in its fish, helping to lower both the firm’s risk and cost. A new batch of fry has been transferred to ongrowing facilities, and the company is gearing up for the first sales of farmed cod this summer.
“We aim to produce 6,000 metric tons (MT) of fresh farmed cod in this first cycle, and a harvest volume of 10,000 MT in 2022. Market demand is high, with some samples fetching a strong NOK 65.00 [USD 7.66, EUR 6.39] per kilo and an average of NOK 56.00 [USD 6.60, EUR 5.50] per kilo,” Riber said.
The company has plans to reach 24,500 MT per year and is about to start construction work on its own fry facility in Florø, in conjunction with joint-venture partner Havlandet Havbruk AS. The plant is expected to be completed in summer 2022.
“Right now, we are exactly where we want to be and following our carefully laid plan,” Riber said. “Our ambition is to provide healthy protein through responsible farming of cod on an industrial scale, with sales contracts for year-round supply. We have a watertight business model, customers are eagerly awaiting our product and we look forward to becoming profitable when sales begin.”
Riber praised his team for the efforts and for helping to keep operating costs under budget by NOK 12 million (USD 1.4 million, EUR 1.2 million) during the year.
According to Riber, monitoring and mapping of fish performance is a vital part of production activities, while “quantum-leap” improvements in biomass breeding programs are ensuring that cod farming is a sound proposition today, compared with a decade ago. Norcod is currently using sixth-generation cod fry that are bred for optimal health and yield, he said.
Riber said in 2020, Norcod’s investment and financing activities generated positive cash flow of NOK 420.5 million (USD 49.6 million, EUR 41.3 million), up from NOK 378.9 million (USD 44.7 million, EUR 37.2 million) in 2019, due to the company’s listing on the Oslo Stock Exchange’s Euronext Growth market in October. The company had cash and cash equivalents of NOK 199 million (USD 23.5 million, EUR 19.6 million) at the end of 2020, up from NOK 8 million (USD 1 million, EUR 786,000) at the same time the previous year.
Photo courtesy of Norcod
