AquaBounty Technologies Increases its Product Revenue a 371% in the Second Quarter 2022

AquaBounty Technologies (NASDAQ: AQB), the land-based aquaculture company Maynard, Massachusetts, USA based announced some days ago their financial results for the Second Quarter ended last June. The company utilizing technology to enhance productivity and sustainability generated USD 1.1 million in product revenue in the second quarter, a year-over-year increase of 371% as compared to USD 227 thousand in the second quarter of 2021.

In that sense, Sylvia Wulf, Chief Executive Officer of AquaBounty said: “Our genetically engineered Atlantic salmon saw continued market validation from seafood distributors in the quarter, with strong demand continuing for the entire output of our Indiana farm. This robust demand, combined with improvements in our sales yields and higher market prices, drove an 11% sequential increase in second quarter revenues to USD 1.1 million,” she added.

“As we ramp production at our Indiana facility, we will continue to utilize the farm as an opportunity to refine our production and harvest methods through the application of technology and process improvements, a critical learning experience ahead of our Ohio farm,” Wulf assured.

Construction activities in Ohio

Indeed, the Direction of AquaBounty Technologies also reported that the construction activities for the Pioneer, Ohio farm site are well underway and are already focused on underground piping.

“Construction progress on our next-generation farm in Pioneer, Ohio is advancing. After the groundbreaking ceremony in late April, work commenced on initial pre-construction activities including the construction of roadways, on-site energy infrastructure and land preparation. With that work largely complete, we are now focused on excavating the ground site and laying the piping that will provide fresh water to our fish tanks,” the CEO explained.

Slow the process down temporarily

On the bond financing front, the company decided to slow the process down temporarily in order to evaluate the current economic forces that are driving both inflation and interest rates higher.

“Since our estimate for construction of the farm currently exceeds our previous range of USD 290 – USD 320 million, we will review all options for reducing cost, including potentially phasing the construction of the 10,000 metric tons farm with an initial production output level that would demonstrate our competitive advantage and ability to operate at commercial scale.”

They believe this is a prudent move and it will allow us to re-estimate remaining construction costs and thus avoid locking in contracts, commodity pricing for materials or interest rates at what may be their peak.

“We currently expect to resume our bond financing efforts with Wells Fargo Corporate and Investment Banking and the issuance of additional construction sub-contracts, once we have completed our evaluation of the project scope, relevant economic trends and market costs. However, construction on the farm will continue during this period and we are targeting to close the bond financing by year-end,”

Operating from a strong position

As they look to the second half of 2022, they think they are operating from a “strong position”. Their GE Atlantic salmon continues to receive market validation, the scale-up of harvests; sales at their Indiana facility is well underway; and construction continues at the Ohio farm – all supported by their fortified balance sheet. “We are committed to bringing a high-volume of fresh, sustainable Atlantic salmon to the market and look forward to continued execution and foundation building in the months ahead as we strive to build long-term value for our shareholders,” concluded Wulf.

More news

Nevertheless, it was also revealed that the net loss of Aquabounty, a company which produces genetically modified salmon, totaled USD 5.5 million in the second quarter, as compared to USD 5.2 million in the same period of 2021. In the other hand cash, cash equivalents, marketable securities and restricted cash totaled USD 149.2 million as of June 30, 2022, as compared to USD 191.2 million as of December 31, 2021.

Safe, secure and sustainable process

AquaBounty provides fresh Atlantic salmon to nearby markets by raising its fish in carefully monitored land-based fish farms through a safe, secure and sustainable process.

“The Company’s land-based Recirculating Aquaculture System (RAS) farms, located in Indiana, United States and Prince Edward Island, Canada, are close to key consumption markets and are designed to prevent disease and to include multiple levels of fish containment to protect wild fish populations.“

At AquaBounty Technologies they believe they are a leader in land-based aquaculture leveraging decades of technology expertise to deliver disruptive solutions that address food insecurity and climate change issues. We are committed to feeding the world efficiently, sustainably and profitably.