Kingfish Company's sales up for third quarter

'The third quarter of 2022 was another solid quarter for The Kingfish Company, where we have stabilised at full capacity run-rate for phase 1. We are now ready to launch capacity for phase 2, which is nearing completion. We are pleased to report another quarter with strong sales growth, significant sales price increases, particularly for large fish, while achieving robust steady production and consistently high productivity,' says Ohad Maiman, CEO of The Kingfish Company. 

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Driven by continued strong demand for high value kingfish in Europe and the US, sales grew by 90 percent to €5.4 million in Q3'22 and 69 percent in whole fish equivalent (WFE) tonnage to 392 tons. Sales prices have significantly increased in Q3'22, particularly for large fish (+25% YoY) reaching an average price per kg WFE of €17.1, and for small fish (+14% YoY) at €12.1 per kg WFE. Demand continues to outpace their production capacity.

The Kingfish Company produced 374 tons of net growth of high value Yellowtail Kingfish in Q3'22, compared to 334 tons of net growth in the same quarter of last year (first quarter at full run-rate of current installed capacity). This has resulted in a robust productivity index performance of 0.73 (net biomass growth per cubic metre capacity per day), representing an improvement of 11 percent compared to Q3'21.

Phase 2 expansion fully financed
Despite difficult market conditions, The Kingfish Company is raising €35 million through an equity raise, which is fully subscribed and guaranteed for all three tranches. The equity raise together with the remaining net amount on the PCP facility, a new revolving credit facility of EUR 5 million, a new lease facility with a EUR 3.5 million framework, and available cash is estimated to fully finance the Phase 2 capex with a buffer. The additional funds would also be available for biomass build up and general corporate purposes. 

While The Kingfish Company has reached full capacity run-rate in phase 1, it has started the production of fingerlings for the pre-stocking of Phase 2. Phase 2 production is set to commence in early Q1'23. The significant volume increase is expected to result in material improvements to unit economics, building on an already strong basis. 

Development of the Company's US operation in Maine has secured all State and Federal permits, with only local town planning board permit remaining and in advanced stages, paving the way toward an 8,500 ton Phase 1 construction. In the third quarter, the company's site in Jonesport received the community support to proceed with its application as town residents overwhelmingly voted down a proposed moratorium on aquaculture projects. In parallel, the Company has shipped 3rd generation fingerlings to its US hatchery, to serve as future brood stock for the US operation.

For more information about the company visit the website, HERE.

The Aquaculturists

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