Cod farmer's losses tripled last year

Norwegian cod farmer Ode made a post-tax loss of NOK 93.9 million (£6.6m) in 2023, triple the NOK 31.7m loss registered for the year before, reports Fish Farming Expert's Norwegian sister site, Kyst.no.

“The deficit is as expected and related to large investments in organisation, value chain and capacity,” the board stated in the company’s annual report.

Ode emphasised that the company’s strategy has been to build up a fully integrated value chain for farming and selling cod.

“This strategy is capital-intensive, but at the same time ensures overall quality and control over the fish from egg to finished product.”

Six approved sites

At the end of 2023, the cod farmer had six approved sea locations, four of which were in operation at the end of the year.

Ode started harvesting its first group of fish in November 2022 and through 2023 harvested 3.5 tonnes (whole fish equivalent). The company said it is well satisfied with the production results, the harvest weight achieved and the quality of the fish.

At the end of 2023, the balance sheet value of standing biomass was NOK 453m. These fish are expected to be sold in 2024 and 2025, the company said.

'Profit in 2025'

Ode has an equity share of 32%, and net cash flow from operational operations in 2023 was NOK -291m.

“The company is still in a build-up phase, where investments in biomass growth are still greater than income. This build-up phase will continue in 2024 before it is expected towards the end of 2025 that operational operations will generate positive cash flow,” Ode’s directors wrote.

The company said that through 2023 it entered into long-term agreements with customers to lock in parts of the volume on fixed contracts at good prices.