Proximar Seafood AS has reported a net loss before tax of NOK 11.1 million in the first half of 2022, compared to a loss of NOK 19.4 million in the first half of the previous year. Currently, the company is in a project development phase so it had no income.
Contrary, the report indicates an operating expenses increase. From NOK 5.5 million to NOK 11.1 million due to the costs as operational start-up is imminent. Besides, it shows a cash balance of NOK 73.7 million and a strong equity of NOK 362 million.
About the project development, Joachim Nielsen, CEO of Proximar Seafood explained: “We are now preparing for the operational start-up of our first land-based recirculation facility in Oyama Town, Shizuoka in Japan. We have a strong operational team in Japan and are well prepared for the production start shortly.”
In more detail, the company has indicated that the last interior works in the Hatchery and Nursery building have been completed. All are prepared for egg insertion. On the other hand, the tank installation will start soon. The steel erection is on its way for the Post Smolt Grow-out building. In terms of sustainability, the report also notes the obtention of the rate from the Japan Credit Rating Agency.
The Japanese market
In addition, Nielsen indicated: “In April, we signed a 10-year sales and distribution agreement with Marubeni for our salmon to the Japanese market. Partnering up with experts has always been important for us. We are pleased to see all the attention we have received from the media in Japan after the signing. This has also boosted the local debt discussions, which we are working actively on.”
“During the first six months of 2022, we have seen very high salmon prices in the Japanese market. Due to the combination of the international salmon prices and the high transportation costs. We expect more normalized market prices long-term, and we are still confident in attaining a price premium on the Proximar fish due to its freshness, Mt Fuji location, clear ESG profile, and local origin,” Nielsen ended.