Salmon factory ship owner optimistic despite losses
Hav Line, which owns salmon farming factory ship the Norwegian Gannet, recorded another deficit last year but is confident of better times ahead after resolving licensing issues with Norwegian authorities.
Turnover increased to NOK 182.4 million (£15.5 m) in 2021, up from NOK 151.1 m the previous year. Operating loss was also reduced from NOK 35 m in 2020 to NOK 25.1 m in 2021.
However, higher interest and other financial costs worsened pre-tax loss in 2021 to NOK 57.9 m, compared to NOK 56.3 m in 2020.
New concept
In its annual report, the Hav Line board emphasised that the on-board processing the group offers is a new development, and the introduction of a new concept in the aquaculture industry, together with the effects of Covid-19, has resulted in both a lower harvesting volume and higher operating costs than desired.
“Through the experience gained, we have achieved increasingly better efficiency in the process and quality of the end product,” it says.
As well as being the world’s biggest slaughter boat, the Norwegian Gannet carries out processing on board and takes fish directly from salmon farms to the world’s largest salmon packaging facility in Hirtshals, Denmark.
Used in Scotland
The vessel was used by Mowi Scotland in 2019 when the volume of fish the company was harvesting exceeded the capacity of its Blar Mhor primary processing facility at Fort William. The Gannet processed 403,221 fish (1,595 tonnes) from pens at Mowi’s Portnalong, Cairidh, and Rum sites and landed them in Denmark.
The Gannet has caused controversy because it takes processing work away from coastal communities in Norway, and the vessel was initially unable to operate as planned because the then Norwegian fisheries minister Harald Nesvik demanded that so-called production fish - fish with visible wounds, malformations and similar – must be sorted in Norway.
Dispensation
In 2021, the company received a 10-year dispensation from the production fish rule, effectively allowing it to operate as planned.
The Hav Line board is therefore positive about the economic development in the coming years.
“With the framework conditions clarified for the next 10 years, the company can intensify the strategic work for increased activity and secure increased volume through agreements and/or partnerships that will provide satisfactory earnings going forward,” the board wrote.
