Rosewarne resigns as CEO of struggling NZ fish farmer
Warmer water forced king salmon producer to fallow some sites after die-offs
New Zealand King Salmon chief executive Grant Rosewarne yesterday resigned with immediate effect, the company said in a stock market announcement.
Sales general manager Graeme Tregidga has been appointed as acting chief executive while the company seeks a permanent replacement.
NZ King Salmon farms the species Oncorhynchus tshawytscha, commonly known as king or chinook salmon. It has been forced to fallow three of its warmer farms in Pelorus Sound after rising sea temperatures last summer killed a significant number of fish, reported NZ website Stuff.
£12.5m first-half loss
The fish farmer reported an NZ $24.5 million (£12.5 m) loss in the first half of its current financial year to 31 July. Last financial year it reported an NZ $73 m loss, after writing down the value of its assets by NZ $59 m and changing its farming practices to cut back on the use of its warmer sites over summer.
According to Stuff, the fish deaths put NZ King Salmon under some financial pressure last year. Its debt increased, and it breached its banking covenants with its lender, Bank of New Zealand (BNZ). The bank agreed to a temporary waiver so long as NZ King Salmon raised at least NZ $50m of new equity, after any transaction costs. The company sold NZ $60m of shares at a discount, about NZ $43m of which went to repay its debt.
NZ King Salmon wants to set up New Zealand’s first open ocean salmon farm in colder Cook Strait waters, and expects to hear whether its proposal, named Blue Endeavour, has been approved at the end of this month. If consent is granted, harvesting wouldn’t occur until at least the 2027 financial year.
Significant contribution
Chair John Ryder said Rosewarne, who has led the company since 2009, had made a significant contribution, including leading NZ King Salmon through its stock market launch and the creation of the Ora King brand. He had also guided the company through a number of recent challenges, including the Covid-19 pandemic.
“Furthermore, Grant has led a significant effort to obtain new water space to enable future growth and we are expecting to hear an outcome from our Blue Endeavour application at the end of November,” said Ryder in the stock market announcement.
“Following the recent rights issue and the changes to our farming model, Grant leaves New Zealand King Salmon well positioned for the future.”
