Salmon Evolution (SALME) Q2 2023 TU earnings summary

Executive summary

• Strong biological performance at Indre Harøy; standing biomass reached 1,047 tonnes live weight at June 30, with good appetite and normal mortality after freshwater treatment.

• Freshwater treatment proved effective against AGD, and on-site freshwater production capabilities are installed and operational.

• Operating experience demonstrated the robustness and flexibility of hybrid flow-through technology.

Outlook and guidance

• Next harvest expected to begin late in Q3 2023; annualized steady-state production of 7,900 tonnes HOG targeted during Q4 2023.

• Three further smolt releases planned for the rest of 2023, sourced in-house.

• Batch 3, batch 4 and parts of batch 5 planned for harvest in H2 2023; batch 2 was fully harvested in May.

• June feeding levels indicated a quarterly biomass growth run rate of ~1,000 tonnes, with newly stocked batches expected to add momentum.

Segment performance

• Indre Harøy biomass rose to 1,000 tonnes live weight at June 30 from 715 tonnes on May 21; smolt biomass was 47 tonnes, bringing total biomass to 1,047 tonnes.

• Batch 5 average weight exceeded 1.1 kg by June 30, up from 650 g on May 21; batches 6 and 7 were stocked in late May and late June.

• Harvest volume was ~600 tonnes HOG, with 93% superior share and tight weight concentration; average price was NOK 95/kg HOG, back-to-farm and adjusted for transport to the Norway border.