China smartphone shipments slumped in June on inventory overhang: Jefferies
Introduction & Market Context
Gigante Salmon AS (OB:GIGA) presented its second quarter 2025 results on August 19, highlighting progress in its land-based salmon farming operations in Norway. The company, which is constructing a facility with a planned capacity of 16,000 tonnes HOG (head-on gutted) by 2026, reported that two of its three production basins are now operational, with the first harvest achieving superior quality ratings above industry averages.
Shares of Gigante Salmon closed at NOK 8.04 on August 18, down 1.71% ahead of the earnings presentation. The stock has traded between NOK 6.50 and NOK 9.02 over the past 52 weeks.
Quarterly Performance Highlights
Gigante Salmon reported its first operating revenue from harvesting 694 tons HOG in Q4 2024, achieving a 91% superior quality rating compared to the industry average of 85.1%. The company realized an average price of NOK 64/kg, which management noted was in line with market prices.
The company’s innovative approach to salmon farming is yielding operational efficiencies in several key metrics. As shown in the following performance data, Gigante Salmon is outperforming industry standards in several categories:
Despite these positive operational metrics, Gigante Salmon reported a net loss of NOK 2.9 million for Q2 2025 and a year-to-date loss of NOK 3.9 million. The company’s production cost of NOK 70/kg HOG remains slightly above the industry average of NOK 65/kg, reflecting the early stage of operations.
Construction and Operational Progress
Gigante Salmon’s facility construction is proceeding according to schedule. The company’s site is divided into three basins, with Basin A operational since Q1 2024 and Basin B coming online in Q2 2025. Basin C is expected to be completed in Q4 2025, at which point the entire production plant will be operational.
The following site overview illustrates the current status and progress plan for the facility:
The company’s standing biomass as of June 30, 2025, was 760 tons, with 760,000 salmon at an average weight of 1,000 grams. These fish are scheduled for harvest between Q4 2025 and Q2 2026, representing the company’s first full production cycle.
An aerial view of the facility demonstrates the scale of Gigante Salmon’s operations and its integration with the surrounding environment:
Financial Analysis
Gigante Salmon reported total revenue of NOK 44.7 million for the quarter. Key expenses included feed costs of NOK 27.9 million, salary and personnel expenses of NOK 6.0 million, and other expenses of NOK 37.0 million, resulting in a net loss of NOK 3.6 million.
The company’s balance sheet remains solid with total equity of NOK 711.9 million against total assets of approximately NOK 1.3 billion. Non-current liabilities stood at NOK 480.1 million, while current liabilities were NOK 130.3 million.
During the quarter, Gigante Salmon secured new financing of NOK 50 million through a loan from majority owner Gigante Havbruk AS. After the balance date, the company announced plans to establish additional financing of up to NOK 100 million to support continued expansion.
Strategic Initiatives and Competitive Positioning
Gigante Salmon emphasizes its unique hybrid approach to salmon farming, which aims to combine the benefits of both land-based and sea-based production. The company claims a significant competitive advantage in capital expenditure, with CAPEX below NOK 75/kg HOG at full production compared to NOK 200-250/kg for traditional land-based recirculating aquaculture systems (RAS).
The company’s strategic positioning is supported by a strong regional supplier network, as illustrated in this supply chain overview:
This integrated regional cluster includes partners for broodstock, smolt production, processing, and distribution, creating a comprehensive value chain that supports Gigante Salmon’s operations.
Forward-Looking Statements
Gigante Salmon reaffirmed its target of reaching full production capacity of 16,000 tonnes HOG by 2026. With the completion of Basin C expected in Q4 2025, the company is on track to meet this goal.
Management highlighted the company’s focus on health, security, environmental concerns, and quality (HSE&Q), noting that there were no accidents with high potential risk during Q2 2025. The company’s philosophy that "If the fish are doing well, then we are doing well" underscores its commitment to sustainable aquaculture practices.
As Gigante Salmon continues its expansion toward full production capacity, investors will be watching closely to see if the company can maintain its superior quality metrics while improving production costs to meet or exceed industry averages and ultimately achieve profitability.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.