Dutch land-based aquaculture firm The Kingfish Company is anticipating "significant" additional costs and delays with its expansion projects in the Netherlands and the United States as supply chain issues and inflation start to bite.
The group revealed an operating loss of €3.4 million ($3.4 million) in the first half of 2022, slightly narrower compared with the loss of €3.6 million ($3.6 million) in the same period the previous year.
Driven by continued strong demand, the company doubled sales for the second quarter in a row while the price of its kingfish increased 14 percent to €13.10 ($13.10) per kilogram, compared with €11.50 ($11.50) in the previous quarter.
Turnover was €8.4 million ($8.4 million) in the first half of the year, while the loss before tax amounted to €4.1 million ($4.1 million).
Production from the company's Phase Two project in the Netherlands is expected to start at the end of this year or the first quarter of 2023, however, faced with supply chain issues, the company said it expects additional costs and potential delays for the remaining work to be completed.
The company reaffirmed its long-term ambition of annual production of 44,500 metric tons in the Netherlands, southern Europe and the USA.
In the United States, construction is entering its final phase, with the final outstanding permit with the Municipal Town Planning Board in Jonesport Maine.
The Kingfish Company produces yellowtail kingfish, a fish widely used in sushi. The company is listed on the stock exchange in Oslo.