The early harvest will have short-term financial consequences, but Norcod is sticking to its growth plans for the next few years and will already be stocking four new batches this year.

Early harvest hits Norcod’s earnings

Move agreed with authorities will reduce volume and sales income

Editorial team
Published

Norwegian cod farmer Norcod today warned it would suffer a significant drop in earnings as a result of harvesting fish earlier than planned.

Concerns from the Norwegian Directorate of Fisheries (Fdir) about sexual maturation and possible spawning of the fish led Norcod to bring forward harvesting.

“These fish are healthy and were planned to be harvested within the next six months,” Norcod said in a stock market announcement.

But it said the accelerated rate of harvesting, provisionally agreed with Fdir, will result in:

  • Lower volume production than expected.
  • Smaller size fish than expected.
  • Short delivery on long-term sales contracts with clients.
  • Lower sales prices due to increased sales on the spot market

“The overall consequence is a significant drop in earnings and simultaneous increase in expensed costs/kg,” added Norcod.

“The effect on cashflow is limited to reduced sales income, somewhat offset by lower production costs in the next six months.

“Despite the operational and financial change to our 2021 generation, our growth plan and overall 2025 target is still on track and unchanged which means we will put four new batches into the sea phase during 2023.”

Norcod said more details on the impact of the early harvesting would be included in its report for the fourth quarter of 2022, published on February 22.

news cod norcod