Salmon Evolution (SALME) Q4 2023 TU earnings summary

Executive summary

• First full year of operation ended with strong appetite, low mortality and standing biomass above 2,200 tonnes LW at 31 Dec 2023.

• Q4 net biomass growth reached a record 1,439 tonnes LW; higher biomass production is contributing to lower farming costs.

Financial highlights

• Q4 harvest was 1,104 tonnes HOG, with average weight of ~3.5 kg HOG and 90% superior share.

• Average all-in price realization was NOK 76/kg on a back-to-farm basis, adjusted for transport to the Norway border and including downgraded fish.

Outlook and guidance

• Q1 2024 harvest guidance is 800–1,000 tonnes HOG; harvest is expected to increase significantly from Q2 as Indre Harøy becomes fully stocked.

• Gradually increasing harvest weights and higher biomass production are expected to support lower farming costs.

• Challenging weather ahead of batch 10 smolt transport reduced initial stocking volumes, with no material impact expected on 2024 biomass production or harvest volumes.