Major strides made towards production volume of 40,000 t | Second quarter and half-year 2023 financial results

14 September 2023

“We are proud to have secured vital building blocks that allow us to significantly expand our salmon farming facility at Kvalnes. The construction work is off to an excellent start, partly enabled by the extensive groundworks we have already conducted during the past two years,” says Martin Rasmussen, CEO of Andfjord Salmon.

Read / download Q2 2023 presentation

Read / download half-year 2023 report

DEBT AND EQUITY FINANCING

In June, Andfjord Salmon announced that it had secured commitment for bank financing of NOK 825 million, plus refinancing existing debt of NOK 75 million, in total NOK 900 million, to help fund its expansion at Kvalnes. Andfjord Salmon targets a total production capacity of 40,000 tonnes (HOG) at Kvalnes through a gradual volume increase between 2025 and 2030. An initial volume of 8,000 tonnes (HOG) is anticipated for 2025.

Subsequently, Andfjord Salmon successfully completed a private placement of new shares that raised gross proceeds of approximately NOK 615 million. Several of Andfjord Salmon’s largest shareholders participated in the private placement.

In the initial construction stage, Andfjord Salmon plans to increase its production capacity to 8,000 tonnes and develop major shared infrastructure such as waterways and port area that support future production of 40,000 tonnes at Kvalnes.

Andfjord Salmon is also developing two other sites – Breivik and Fiskenes – at Andøya. The company’s long-term ambition is to reach a total production volume of 90,000 tonnes from all three sites.

SUCCESSFUL FIRST HARVEST

In July, Andfjord Salmon completed its inaugural harvest of Atlantic salmon with strong results including an industry-leading survival rate of 97.5% and superior share of 91.1%. The total biomass of Atlantic salmon reached 646 tonnes, translating to approximately 530 tonnes HOG, with an average weight of approximately 3.4 kilograms per fish. The timing of the harvest was chosen to mitigate project execution risk for Andfjord Salmon’s expansion plan at Kvalnes. In future batches, the average slaughter weights will be notably higher.

“Our first production cycle was a success, from a biological, technical and commercial point of view. The achieved survival rate is industry-leading and feedback from customers is very positive, with emphasis on good color and yield,” adds Martin Rasmussen.

KVALNES EXPANSION

Following successful preparatory efforts and deployment of personnel and equipment during the summer, groundwork and excavation work at Kvalnes is currently in full momentum. Excavated masses from pool pits and waterways are utilized for port and quay development, thereby reducing both operating costs and CO2 emissions associated with the build-out.

Pre-cutting in connection with blasting and excavation of waterways commenced on schedule in early September.

SECOND QUARTER 2023 FINANCIAL RESULTS

Andfjord Salmon delivered operating income of NOK 9.6 million in the second quarter 2023, compared to zero in the same quarter last year. The company had an operating loss of NOK 18.1 million in the second quarter, versus a loss of NOK 10.4 million in the same period last year.

In total, Andfjord Salmon’s first harvest generated revenue of NOK 37.1 million, of which NOK 27.5 million will be booked in this year’s third quarter. 

“In summary, we are exactly where we want to be. We have built up trust in our flow-through technology and biological performance, and the next construction phase is on track,” concludes Martin Rasmussen.

PRESENTATION AT 08:00 (CET) TODAY

Andfjord Salmon AS will provide an operational update and presentation of the second quarter and half-year 2023 financial results at 08:00 (CET) today.

The webcast presentation can be watched from the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20230914_2/

The presentation will be held in English. Questions can be submitted during the webcast.

The presentation material and the half-year report are enclosed to this announcement.

DISCLOSURE REGULATION

This is information that Andfjord Salmon AS is obliged to make public pursuant to the EU Market Abuse Regulation (MAR) Article 17 no. 1. The information was submitted for publication, through the NTB Kommunikasjon service by the contact persons listed below.

CONTACTS

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

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

ABOUT ANDFJORD SALMON

Located at Kvalnes on the island of Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord Salmon has developed an innovative and sustainable aquaculture concept for land-based farming of Atlantic salmon, based on a flow-through technology solution. The company's ambition is to build the world's most sustainable and fish-friendly aquaculture facility of its kind. Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF.