Trondheim, Norway-based Norcod’s third-quarter financial report showed the company is on track to achieve its revenue target of NOK 350 million (USD 38.4 million, EUR 32.6 million) in 2021.
The company currently operates cod farms at two locations in central western Norway, and has set a goal of producing 9,000 metric tons of cod by 2021, increasing to a year-round supply of 25,000 tons by 2025.
On 15 October, Norcod was listed on the Oslo Merkur market with a valuation of approximately NOK 850 million (USD 93.3 million, EUR 79.2 million). The company’s NOK 250 million (USD 27.1 million, EUR 22.9 million) share issue last month was three-times oversubscribed.
“The share price has seen a significant increase since the launch, and in my opinion, it shows that the market believes in what we’re doing,” Norcod Board Chairman Christian Riber said.
The company’s Q3 report gave a positive position on fish performance and financials, and showed the company to be on track to achieve its revenue target of NOK 350 million (USD 38.4 million, EUR 32.6 million) in 2021, with a pre-tax profit of NOK 65 million (USD 7.13 million, EUR )
According to a statement from Norcod, the establishment of fish farms and the transfer of the first cod juveniles to sea played a major part in helping the company’s operational results to improve compared to 2019, while cash flow was smoothed by the investment and financial activities. Profits are expected once fish from the first production cycle are ready for market.
Norcod has established collaborative partnerships covering its entire value chain, from farming through slaughter and processing to sales. Norcod’s largest shareholder, Sirena Group, is handling sales, and the fish will be processed by Namdal Settefisk.
“We are in a very good position to complete the first production cycle, and look forward to our first harvest next year, which our buyers are also eagerly awaiting,” Riber said.
At the end of September 2020, Norcod had 1.7 million fish in production. The company noted high survival rates, calm fish behavior, well-distributed biomass and good appetite amongst its first generation of fish.
“Our experience during the last quarter has shown that the cod juveniles have managed the transfer from land-based tanks to sea pens very well,” Riber said. “We are past the warmer summer sea temperatures, which is most critical point, and are very optimistic that we can successfully produce top quality, sustainable fish.”
Norcod is has entered the GlobalG.A.P. and Aquaculture Stewardship Council (ASC) certification process, the company reported. Additionally, it is seeking out energy-efficient technology and equipment, in line with its sustainability goals. It recently ordered three battery-hybrid vessels for delivery in 2021.
“As the world’s first company aiming to produce cod on a commercial scale, we have come a long way getting the biology and infrastructure in place, thanks to our fantastic team and partners,” Riber said.
Photo courtesy of Norcod
