Andfjord Salmon (ANDF) Q3 2024 earnings summary

Executive summary

• Kvalnes build-out is progressing on or ahead of schedule, with waterways 90% complete and major milestones achieved in tunnels, pool pits, and harbor development.

• The facility is designed for sustainability, energy efficiency, and fish welfare, aiming to be the world's most sustainable and fish-friendly aquaculture site.

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

• The regulatory environment is evolving, but current operations are not impacted by proposed changes, and feedback has been submitted to authorities.

• Waterways infrastructure is designed to support future production of 40,000 tonnes, enabling lower risk and cost for subsequent expansions.

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, and YTD net loss NOK -49.8 million, with losses narrowing from the previous year.

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

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

• Actual capex for Kvalnes phase 1 was NOK 1,346 million, below budget, and blended capex 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 a long-term ambition of 90,000 tonnes across sites.

• Additional pools are planned for 2026 and 2027, targeting 19,000 tonnes by 2027 and 40,000 tonnes by 2030.

• All future expansions are expected to be financed by a mix of debt and cash flow.

• CapEx for stage two remains at NOK 1.1 billion, with inflation buffers included.

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