Kvalnes build-out on schedule | First quarter 2024 financial results

29 May 2024

Andfjord Salmon Group AS (Andfjord Salmon) reports that its build-out at Kvalnes, Andøya, is progressing as planned. The company has successfully completed an equity raise of NOK 350 million, attracting new strategic industrial investors.

"Our build-out is progressing well. During the first quarter, we identified an additional revenue stream that strengthens our business case. We also received another report confirming strong biological conditions in our first production cycle, which contributed to the success of last week's equity raise," said Martin Rasmussen, CEO of Andfjord Salmon.

Andfjord Salmon Q1 2024 Presentation.


Andfjord Salmon has chosen to take science-based approach to land-based fish farming. Independent research body Nofima was therefore tasked with documenting biological conditions and fish welfare in the first pool.

Recently, Nofima submitted a final documentation report, covering the full production cycle, from smolt release to harvest. This extensive examination of biological conditions, fish welfare and fish health states that “Andfjord Salmon applied a very comprehensive welfare and health documentation plan for the first production cycle.”

In this report, Nofima documented a large number of operational welfare indicators for the salmon, including environmental factors in the pool, fish behaviour, growth and fish health. The key findings are summarised in the enclosed first quarter presentation.

“The fish farming industry is under pressure to improve biological conditions, fish health and welfare. Although we are still only a small player in a large global industry, this report shows that our land-based flow-through system is capable of enabling fish-friendly salmon farming,” says Martin Rasmussen.


During the first quarter, Andfjord Salmon announced plans to utilise surplus pool capacity after smolt release to release even more smolt in its land-based pools. This additional smolt will be sold on to ocean-based fish farmers in the region after approximately 5-7 months, when the fish has reached approximately 1 kilogram. It is a smart way of enhancing production capacity and income potential without adding additional infrastructure costs.

According to Andfjord Salmon’s own calculations, this strategy will enable 10 percent higher biomass turnover, which in turn means an estimated 15-25 percent increase in EBIT. The company’s cash flow will also improve considerably as it can generate sales revenue after typically 5-7 months production time, in addition to income from the harvest of human grade salmon after a full 12-15 month production cycle.

Shortening the ocean-based grow-out phase by releasing larger and more robust fish into ocean net pens, can also offer biological and environmental benefits to ocean-based fish farmers. During the first quarter, Andfjord Salmon entered into a strategic collaboration with ocean-based fish farmer Eidsfjord Sjøfarm/Holmøy Havbruk to provide post-smolt for selected, nearby ocean-based farming locations.


In the first build-out phase, Andfjord Salmon is completing four new pools, which brings total production capacity to 8,000 tonnes HOG at Kvalnes in 2025. Andfjord Salmon targets a total production capacity of 40,000 tonnes (HOG) at Kvalnes through a gradual volume increases between 2025 and 2030. In the initial build-out phase, the company is also developing shared infrastructure, such as waterways and a harbour area, that will support future production of 40,000 tonnes at Kvalnes.

In the first quarter, Andfjord Salmon announced that the excavation of the next 12 pool pits at Kvalnes had been completed ahead of schedule. The facility that will produce concrete elements for pool walls and floors has now been set up and is ready for production. This facility will utilise excavated masses from pool pits as concrete ingredient, thereby keeping costs and environmental footprint to a minimum.

The workstream to develop the inlet and outlet waterways is also on track. The quality of the bedrock is in line with the initial expectations. The harbour area workstream is also progressing according to plan.


Last week, Andfjord Salmon decided to capitalise on increased investor interest by raising NOK 350 million in equity that provides the company with increased financial flexibility for the ongoing build-out at Kvalnes. Current shareholders in Andfjord Salmon, including the company's largest shareholder Jerónimo Martins Agro-Alimentar S.A and fish farming company Eidsfjord Sjøfarm, invested their respective pro-rata ownership shares in the private placement. In addition, High Liner Foods Incorporated, a leading processor and marketer of seafood serving the US and Canada that is listed on the Toronto stock exchange, invested USD 10 million in the private placement and becomes a new shareholder in Andfjord Salmon.

“All in all, we are satisfied with the progress we are making, and we are pleased to see that reputable industrial investors recognise this by investing in Andfjord Salmon,” says Martin Rasmussen.


Andfjord Salmon is currently expanding its Kvalnes facility and therefore had no salmon production and only minor revenue in the first quarter of 2024. The company had an operating loss of NOK 17 million in this year’s first quarter, versus a loss of NOK 13.9 million in the same quarter last year.


Andfjord Salmon will provide an operational update and presentation of the company’s first quarter 2024 financial results at 08:00 (CET) today. The presentation will be held physically in Oslo as well as streamed live to online viewers.

Venue: Hotel Continental, Stortingsgata 24/26, 0117 Oslo


Bjarne Martinsen, CFO, +47 975 08 345, bjarne.martinsen@andfjord.no

Martin Rasmussen, CEO, +47 975 08 665, martin@andfjord.no


Located at Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord Salmon is developing the world’s most sustainable and fish-friendly aquaculture facility of its kind. Through a proprietary flow-through system, Andfjord Salmon combines the best from ocean and land-based salmon farming. In its first production cycle, the company achieved an industry-leading survival rate of 97.5 percent, feed conversion ratio of 1.05, superior share of 91.1 percent, and required 1 kWh to produce one kilo of salmon. Andfjord Salmon has identified a roadmap towards a production capacity of 40,000 tonnes HOG at Kvalnes, Andøya, and set a long-term ambition to reach 90,000 tonnes HOG across Kvalnes, Breivika and Fiskenes at Andøya.

Andfjord Salmon is a Norwegian company established in 2014. The company is listed at Oslo Stock Exchange (ANDF), and located at Kvalnes on the northernmost island of Andøya in Vesterålen, Norway.