Lower turnover and loss for Atlantic Sapphire

Lost $14.5 million in the first half of the year.

The land-based fish farmer harvested 1,217 tonnes of salmon in the first six months of the year. This is a decrease of 58 tonnes compared to the same period last year.

“The group’s net loss for the six months ended 30 June 2022 was $14.5 million, representing a decrease in net loss of $37.0 million compared to the group’s net loss of $51.5 million for the six months ended ended June 30, 2021. The decrease is attributed to the insurance settlement of $25.3 million from the Denmark Bluehouse fire on September 15, 2021. Furthermore, the group had a decrease in material costs attributed to low extraordinary mortality depreciation for the six months ended June 30, 2022 compared to the the six months that ended 30 June 2021. Overall, the group continued to increase operations in the USA with regard to revenues, standing biomass, harvesting volume and costs,” the company writes in its quarterly report.

As of August 25, Atlantic Sapphire has a standing biomass of approximately 3,500 tonnes of salmon swimming in the tanks at the facility outside Miami.

Cost inflation is, also for Atlantic Sapphire, a “source of concern”. The company paid $2.3 (22.26 kroner) per kilogram of feed, including 30 cents in transport. In comparison, BioMar sold feed for an average price of NOK 15.29 ($1.6) per kilo in the second quarter.

As a result of the aforementioned inflation, the investment estimates for the company’s second construction stage are raised from $225 million to USD 275-300 million.

The company refers to the biological operation so far in the third quarter as “solid”. According to the plan, Atlantic Sapphire will harvest 800,000 to 1,000,000 fish during the second half of the year, of which “at least 2/3” will be harvested in the fourth quarter.

The demand side in the US market is referred to as “strong despite inflationary pressure on consumption”.