Norcod trims operating loss despite 26% rise in farming cost in Q2

Norwegian cod farmer Norcod chalked up another operating loss in the second quarter of this year, but this was slightly reduced from the same period in 2024 despite a big jump in production cost due to lower harvest volumes.

Norcod’s revenues reached NOK 91 million (£6.7m), up from NOK 86m in Q2 2024, and operating loss was NOK 47m (Q2 2024: NOK 50m).

Harvest volume was 1,541 tonnes (whole fish equivalent), down by 16% from 1,830 tonnes WFE in the same period last year, and equivalent to 34% of the farmed cod exported from Norway in Q2.

Production cost at sea was NOK 59.9 per kg WFE, up by 26% from the cost of NOK 47.6 per kilo in Q2 2024.

Early harvesting

Norcod, which began harvesting fish early from its Lubutka site in November 2024 after an escape was discovered, said the cost increase was mainly explained by effects from the early harvest, in addition to completing harvesting from the site and other challenges. This contributed to a reduced available harvest volume and drove up the production cost per kilo.

The Labukta site and Norcod’s site at Frosvika were completely harvested during Q2, and both sites have now been emptied.

The biological feed conversion ratio (BFCR) for Q2 came in at 1.14 with an economic feed conversion ratio (EFCR) of 1.34. The superior share was 92.14%.

“At our Jamnungen site we saw an increase in mortality and a temporary reduction in appetite in early June. We are monitoring further development closely,” Norcod said in its Q2 2025 report.

On course for 8,000t

A total of 1.273 million fish were stocked across three of its five sites during Q2.

“We will see an increase in standing biomass during the second half of the year and are on track to harvest approximately 8,000 tonnes in 2025,” the company reported.

At the end of the quarter, Norcod’s biomass at sea totalled 3,716 tonnes, which accounts for 24% of the total biomass volume of farmed cod in Norway. Net reduction during the quarter was 297 tonnes.

“During parts of Q2 and Q3, we temporarily paused harvesting to allow the fish to grow and reach an average weight better aligned with market demand,” Nordcod wrote in its Q2 2025 report. “This period was also used to upgrade our Kråkøy processing plant, including the installation of a new gutting machine.

“We have aligned our future production plan at new and existing locations so we will have an ideal balance between spring and autumn releases, which will ensure a stable 12-month production and harvest. This results in a temporary lower level of biomass at sea but lays the foundation for profitable growth.”

Two new sites in 2026

During Q2, Norcod was granted permission for a new site at Snyen, close to its Frosvika site.

“Snyen has 3,599 tonnes maximum allowed biomass capacity and will go into operation during 2026. Also, we have leased the cod farming site Selsøy for two full production cycles (4.5 years), located near our existing sites Labukta and Bjørnvika,” wrote Norcod.

It has signed agreements with ScaleAQ for equipment covering two full locations and three feed barges, with deliveries scheduled for spring and autumn 2026.

“Over the last five years we have tested out different equipment and technology. We are now at a stage where we know what equipment will ensure a stable production going forward, and this has been the basis of our choices for the two new sites in 2026.”

Five more boats

Norcod has also secured five boats: one used boat (M/S Sjøvåg) will be delivered in November 2025, two new boats from Euro-Industry are scheduled for delivery in autumn 2025 and spring 2026 and two new Promek boats will be delivered in September/October 2026.

The company has also reached an agreement to ensure sufficient juvenile capacity from the land-based phase.

“The new agreement allows us to fully control and utilise the facility. This enables us to manage both the number of fish and their average weight, which will give us much more flexibility to optimise future releases,” wrote Norcod.