Punta Arenas, Chile-based salmon farmer Nova Austral’s operational revenues came in at USD 17.5 million (EUR 15.8 million) for the fourth quarter of 2021, 38 percent lower than the USD 28.5 million (EUR 25.8 million) posted in the same quarter of 2020 due to a drop in volumes sold, the company reported.
However, the result shows a recovery from the company's worst-ever quarter in Q3 2021, when it recorded USD 14.8 million (EUR 13.4 million) in operating revenues.
Nova Austral's sold volumes decreased 47 percent to 13,600 metric tons (MT) whole-fish equivalent (WFE) during Q4 2021, versus 25,800 MT WFE in Q4 2020. During the quarter, Nova Austral saw a 35 percent reduction in harvested volumes to 9,200 MT, versus 14,200 MT in the same quarter one year prior, which it attributed to stocking restrictions in saltwater sites that were available during 2019 and 2020, and the early harvest of its Navarro 3 site due to an outbreak of infectious salmon anemia (ISA).
Nova Austral's revenues decreased 30 percent year-over-year to USD 20.4 million (EUR 18.4 million), but the cost of its goods sold dropped 35 percent to USD 19.9 million (EUR 18 million), resulting in a 60 percent cut in gross losses from USD 4.2 million (EUR 3.8 million) in Q4 2020 to USD 1.7 million (EUR 1.5 million) in Q4 2021. Considering fair-value adjustments, Nova Austral saw a break-even EBITDA, versus a loss of USD 17.7 million (EUR 16 million) in the same quarter of 2020. Net losses were cut to USD 20.5 million (EUR 18.5 million) versus USD 33.9 million (EUR 30.7 million) in Q4 2020.
During Q4 2021, the U.S. and Europe continued to be the firm’s primary markets, contributing a total 85 percent of its net sales.
The company said that its farming sites and plants have continued operating normally, but a new mortality incident at its hatchery had occurred, causing the death of approximately 1.4 million smolts from hydrogen sulfide contamination caused by malfunctioning biofilters. However, the salmon farmer said the mortalities will not affect projections for 2022, as it plans to stock between 6.5 and 7.5 million smolts and harvest 15,500 to 16,500 MT WFE this year, of which approximately 12,300 MT correspond to sites located in the Skyring area, in the Magallanes region.
Nova Austral also said it had received Aquaculture Stewardship Council and Best Aquaculture Practices certification for Aracena 11, the site it has been harvesting since January 2021, which allowed the firm to achieve its goal of having 100 percent of active sites in operation certified to ASC and BAP standards.
During 2021, 99 precent of the biomass the company harvested was ASC-certified, and 100 percent had BAP certification, Nova Austral said.
Photo courtesy of Chile Superintendency of the Environment
