Andfjord Salmon on track with Kvalnes build-out: Q4 and full-year 2020 interim financial results

‍12 March 2021 – Andfjord Salmon AS remains on track with its Kvalnes development, which has been significantly de-risked during the fourth quarter 2020 and into 2021.

“The decision we made in December to fast-track the development of the full Kvalnes area was smart as it reduces both overall project execution risk for the area development and biological risk for the start pool. This year’s successful hook-up of the first pool has further de-risked the entire project. We are pleased with the progress we are making,” says Martin Rasmussen, CEO of Andfjord Salmon.

Read or download full report

In the fourth quarter 2020, Andfjord Salmon made the decision to go from a sequential development at Kvalnes to a parallel development of the full Kvalnes area. The main purpose was to fast-track the development of the production capacity at Kvalnes from 1,260 tonnes (HOG) to 12,600 tonnes, while at the same time reducing overall project risk and biological risk for the start pool.

Further, initiating a full area development results in saved expenses related to de-mobilization and mobilization of required machinery, and does not otherwise affect total capex.

Subsequent to this decision, Andfjord Salmon conducted a successful private placement where it raised NOK 88.2 million to fast-track blasting and excavation work related to the expansion from 1,260 to 12,600 tonnes (HOG) at Kvalnes.

At year-end 2020, Andfjord Salmon held cash or cash equivalents of NOK 148.8 million. This figure does not include a NOK 50 million undrawn credit facility or NOK 15 million in available grants.

First pool connected with inlet and outlet pipelines

Subsequent to year-end, Andfjord Salmon has, in line with its project plan, successfully installed the two most time-critical and weather dependent installations: the water inlet and outlet pipelines for the first pool. Hence, the most central building-blocks of its flow-through system are now connected to the surrounding ocean at Andøya.

“Utilising a continuous stream of fresh seawater from the surrounding Andfjorden is a key element of creating optimal living conditions for our salmon. We are on track to build the world's most fish friendly and sustainable aquaculture facility of its kind,” says Martin Rasmussen.

Andfjord Salmon is currently finalising electrical and automation installations, as well as installation of less time-critical pipeline connections, before the first pool is ready for water testing.

Q4 and full-year results

Andfjord Salmon is currently building up its first land-based salmon farming facility, which means that that the company does not yet generate a steady revenue stream. In the fourth quarter 2020, Andfjord Salmon had revenues of NOK 0.18 million versus zero revenues in the same quarter in 2019. The company had an operating loss of NOK 7.1 million in the fourth quarter 2020 compared to an operating loss of 2.9 million in the corresponding quarter in 2019.

For the full-year 2020, Andfjord Salmon had revenues of 0.18 million compared to NOK 1.7 million in 2019. Operating profit in 2020 showed a loss of NOK 19.6 million, compared to a loss of NOK 8.3 million in 2019.

Andfjord Salmon has developed a patented, innovative, and sustainable aquaculture concept for land-based farming of Atlantic salmon. The company’s facility is escape-proof, lice-free and its innovative multi cleaning system prevents polluting marine life.

The presentation material for today’s Q4 and interim full-year 2020 financial results presentation, to be held at 08:00 CET, is enclosed to this announcement. The webcast presentation can be followed from this link:

https://channel.royalcast.com/landingpage/hegnarmedia/20210312_4/