January 10, 2024

Impact from water temperature problem last year still affecting Atlantic Sapphire's production

In its first operational update of 2024, Norwegian salmon farmer Atlantic Sapphire announced water temperature issues it experienced in 2023 are still impacting its production.

The company said in an update posted to the Oslo Børs that it has seen higher levels of early maturation in fish associated with Q3 2023 temperature issues. During June and July, hot weather in Miami, Florida, the United States – where Atlantic Sapphire's salmon recirculating aquaculture system (RAS) facility is based – caused water temperature issues that led to the company undershooting its biomass targets.

Soon after its Q3 2023 update, the company said it had installed water chillers that have proven "effective and reliable" to prevent future temperature issues.

"Since the temperature issue was resolved in October 2023, the feeding has been trending up, driven by improved water quality," the company said at the time.

However, those water temperature issues, the company said, are going to continue to have an impact into 2024.

The early levels of maturation are affecting fish that the company planned to harvest in the first half of 2024, "which may impact price achievement and the ability of these fish groups to achieve the same biological performance as seen in June 2023," Atlantic Sapphire said.

The company harvested 310 metric tonnes of head-on gutted salmon in the three months ended December 31, 2023, with a net biomass gain in the period of 1,100 metric tonnes live weight. Its standing biomass estimate as of December 31, 2023, was just above 3,000 metric tonnes live weight.

That 310 metric tonnes harvest weight was the lowest level the company has reported since it began operating in 2020, but the company said in November 2023 it anticipated low harvest levels of around 300 metric tonnes. However, it added that based on metrics at the time, it predicted it would reach break-even earnings before interest, taxes, depreciation and amortisation in H1 2024.

-SeafoodSource