Andfjord Salmon (ANDF) Q3 2024 earnings summary

Executive summary

• Kvalnes build-out is progressing on or ahead of schedule, with major milestones achieved in tunnel, pool, and waterway infrastructure, and all workstreams advancing well.

• The company is focused on sustainable, fish-friendly, and energy-efficient land-based salmon farming, leveraging local environmental advantages.

• The first production cycle achieved a 97.5% survival rate, 1.05 feed conversion, and 91.1% superior share, outperforming industry averages.

• Regulatory changes for land-based aquaculture are under review, but current operations are not impacted due to existing licenses.

• Production ramp-up plan targets 40,000 tonnes at Kvalnes, with total potential of 90,000 tonnes across sites.

Financial highlights

• Q3 2024 revenue was NOK 46,000, with YTD 2024 revenue at NOK 181,000; minimal production in Q3 2024 compared to NOK 27.7 million in Q3 2023.

• Q3 2024 operating loss was NOK -16.5 million, net loss NOK -15.3 million, both improved from the previous year.

• Property, plant, and equipment reached NOK 1.8 billion, with total assets at NOK 2,057 million.

• Cash and cash equivalents at 30 September 2024 were NOK 162.2 million, with total available liquidity of NOK 490 million including undrawn facilities.

• Actual capex for Kvalnes phase 1 was NOK 1,346 million, below budget, with blended capex at NOK 114/kg including buffers.

Outlook and guidance

• Four new pools will be operational by mid-2025, increasing capacity to 8,000 tonnes, with a roadmap to 40,000 tonnes at Kvalnes and 90,000 tonnes across sites.

• Additional pools are planned for 2026 and 2027, with a target of 19,000 tonnes by 2027 and 40,000 tonnes by 2030.

• All future expansions expected to be financed by a mix of debt and cash flow, with CapEx estimates for stage two maintained and inflation buffers included.

• Conservative approach to increasing fish density, with infrastructure designed for higher future capacity.

• Positive long-term outlook supported by regulatory clarity and strong industrial shareholders.