On track for release of smolt in Q2 2022 | Q4 and full-year 2021 interim financial results

Andfjord Salmon successfully verified its unique laminar water flow technology during the fourth quarter of 2021.

23 March 2022

Andfjord Salmon successfully verified its unique laminar water flow technology during the fourth quarter of 2021. The company has now started preparations for release of first smolt, which is planned for the second quarter 2022.  

“From an operational viewpoint, the fourth quarter of 2021 was the most important and positive quarter in Andfjord Salmon’s history. We completed testing of pool functions and successfully verified the laminar water flow technology at our first pool at Kvalnes. This technology confirmation has de-risked our business case substantially,” says Martin Rasmussen, CEO of Andfjord Salmon.  

Read or download Q4 Presentation 2021

The laminar water flow is the heart of Andfjord Salmon's flow-through technology. The technology has enabled Andfjord Salmon to recreate wild salmon's natural habitat on land.  

A flow-through system with laminar water flow reduces energy consumption and associated costs significantly as there is no need to lift, filter or heat the seawater. Simply because the seawater is clean and holds a perfect temperature as it is sourced directly from the nearby Andfjorden, which has the Gulf Stream as one of its closest neighbours.

Throughout this year’s first quarter, Andfjord Salmon has been working on fine-tuning and pool functions, components and the laminar water flow. The company has also started preparations for release of first smolt.  

“We are on track for our planned smolt release in the second quarter. The smolt is growing well in the smolt facility, so now it is about identifying the ideal timing from a biological perspective,” says Martin Rasmussen.

KVALNES PHASE 2 AND 3

For the next phase at Kvalnes (Phase 2), Andfjord Salmon has completed the scraping of the area.  A couple of weeks ago, blasting and excavation work started on the next pools. The pools closest to the first pool will be excavated first.  

Phase 1 and 2 at Kvalnes represent a total production volume of approximately 12,600 tonnes HOG, whereas phase 3 will take production volume up to 19.000 tonnes HOG.  

STRATEGIC INVESTORS

Subsequent to year-end, Nutreco, a global leader in animal nutrition and aquafeed, and Norwegian seafood group Holmøy (through Eidsfjord Sjøfarm AS) agreed to invest in Andfjord Salmon, as part of a NOK 38 million private placement.  

“Both Nutreco and Holmøy are experts in salmon biology. There is no doubt in my mind that a key contributing factor to securing their investments was the successful verification of the laminar water flow, which unlocks the ability to produce salmon in a highly energy efficient and sustainable way,” says Martin Rasmussen.  

In addition, Andfjord Salmon entered into an operational feed supply agreement with Nutreco's aquaculture business line, Skretting. Skretting will supply a feed that is specifically tailored to Andfjord Salmon's flow-through technology to ensure optimal water quality, fish welfare and growth conditions. This will enable the production of a premium quality salmon.

Q4 2021 INTERIM FINANCIAL RESULTS

Andfjord Salmon is currently developing its first land-based salmon farming facility, which means that the company does not yet generate revenues.

The company had an operating loss of NOK 9.4 million in the fourth quarter of 2021, versus a loss of NOK 7.1 million in the same quarter last year. The change is mainly related to higher personnel costs as Andfjord Salmon has conducted a planned ramp-up of its organization in preparation for start of salmon production.

At year-end 2021, Andfjord Salmon had bank deposits and receivables of NOK 49 million. This figure does not include a NOK 20 million undrawn credit facility or NOK 6 million in available grants. Neither does it include proceeds from the NOK 38 million private placement conducted in February 2022.  

PRESENTATION AT 08:00 CET

A presentation of operational status and the fourth quarter and full-year 2021 interim financial results will be held at 08:00 CET today. The presentation material is attached to this announcement. The webcast presentation can be accessed from this link:

https://channel.royalcast.com/landingpage/hegnarmedia/20220323_3/

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 above.  

CONTACTS

Media:

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

Investors:

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