Gigante Salmon reduces harvest forecast for 2027

The land-based fish farmer had previously communicated that the target in 2027 was a harvest volume of 10,600 tonnes of salmon, with an expected EBIT cost of NOK 58/kg HOG (head on gutted).

However, biological challenges associated with the 2025 generation mean that the company now expects a total harvest volume in 2027 in the range of 8,000–8,500 tonnes. The expected EBIT cost for these fish increases to approximately NOK 60-65/kg HOG.

The revised expectations are primarily due to higher mortality than previously assumed in the 2025 generation. The company, which operates a flow-through fish farm on the island of Lille Indre Rosøy in Rødøy municipality in Helgeland, writes in a stock market release that a contributing factor to the increased mortality is that approximately 1 million fish were stocked as late as November 2024, which has led to significant challenges related to winter wounds. 

Operational measures

“The increased mortality has reduced the expected biomass available for harvest in 2027 and negatively affected cost-effectiveness. It represents a permanent loss of biomass and is the main reason for the lower harvest volume expectations for 2027,” Gigante writes.

The company says that it has implemented operational and biological measures to improve development in subsequent generations, and is monitoring the situation closely.

The fact that the company expects to harvest a lower volume and have a higher cost level is something Gigante believes will also negatively affect the financial results for 2027 compared to what was previously expected. 

"The estimates are still subject to biological and operational uncertainty. The company will provide further updates as visibility improves."