Oslo, Norway-based aquaculture company Stolt Sea Farm (SSF) posted a third-quarter loss of USD 435,000 (EUR 392,094), compared with a profit of USD 403,000 (EUR 363,251) in Q3 2018, despite achieving an additional USD 2.8 million (EUR 2.5 million) in revenues during the period, reaching almost USD 28.2 million (EUR 25.4 million).
For the three months through 31 August 2019, SSF’s capital expenditure of USD 5.5 million (EUR 5 million) was up from USD 2.2 million (EUR 2 million) in the corresponding period of last year. This increased outlay was related to an ongoing expansion program.
SSF operates 15 land-based farms – seven in Spain and one each in Iceland, France, Portugal and Norway – producing turbot and sole. Its four farms in California produce sturgeon and the trademarked Sterling Caviar. Collectively, these farms have an annual production capacity of 5,400 metric tons (MT) of turbot, 850 MT of sole, 500 MT of sturgeon and 10 MT of caviar.
Revenue from its turbot sales increased by 12.9 percent in the third quarter, with strong summer demand combined with sales promotions driving a 21.6 percent increase in the volume of turbot sold and a 5.2 percent decrease in average prices.
Sole revenues declined by 10.6 percent in the same quarter, as a 13.8 percent decrease in volume sold was partially offset by a 3.2 percent increase in average prices.
Caviar revenues rose by 26.2 percent, driven by an increase in average prices, but partially offset by a lower volume sold in the quarter.
“At Stolt Sea Farm, we expect continued strong performance from turbot. In sole, the first of our two new recirculation farms will soon be stocked with juveniles, and we expect to bring its first product to market by the end of next year, with the second farm coming online in 2021,” Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen Ltd. said.
He also commented that excluding the impact of fair-value adjustments, SSF’s Q3 results were in line with those of the prior quarter, with an operating profit of USD 2.1 million (EUR 1.9 million), up from USD 2 million (EUR 1.8 million) in Q2 2019.
