Salmon Evolution on track for 5,000 tonnes

Norway’s young land based salmon farmer Salmon Evolution said it is on track to harvest 5,000 tonnes this year – and is expecting even bigger things for 2025.

Presenting its third quarter report, the company said it was going into the new year with a great deal of confidence.

Salmon Evolution reported revenues of NOK 51.3 million (£3.6m) during the period which produced a group EBITDA of minus NOK 7.3 million) (around £500,000).

This latest progress follows a profitable second quarter and the signing of a deal to start building the second phase of its Indre Harøy hybrid flow-through facility.

During the quarter Salmon Evolution said it has used available flexibility to push harvest volumes into the fourth quarter to maximise price realisation on the back of higher expected prices, and is on track to meet its 5,000 tonnes HOG (head on, gutted) harvest volume guidance for 2024 with a standing biomass near record levels at the end of the quarter.

Chief Executive Trond Håkon Schaug-Pettersen (pictured, above) said: “We have used the third quarter well, made new postponements on Indre Harøy and ensured that we are in a strong position into 2025, where we expect to increase production by approximately 40%.

“Given our continued stable operation and strong operational KPIs [key performance indicators], we have the answers we need and are very confident going into 2025.”

Following the final investment decision in June, activity in the phase 2 expansion project ramped up significantly during the quarter.

The realisation of phase 2 will ensure critical scale, taking total output to 18,000 tonnes HOG and facilitating a substantial organic growth capacity for the years to come.

Schaug-Pettersen said: “The project is on track for first harvest during 2026, and we have gotten off to a very good start at the building site.

“With phase 2 online we will have an operational strength few in the industry can rival”. Highlights in the quarter.”

Other highlights included:

• Group EBITDA of minus NOK -7.3m (£0.5m) and a Farming EBITDA of NOK 2.2m (£0.16m) and NOK 3.3 EBITDA per kg (£0.23m).
• Pushing harvest into Q4 to maximize price realization – full year harvest guidance remains unchanged.
• Standing biomass near record levels going into Q4 at around 2,600 tonnes live weight. Restocking of grow-out facility was completed during the quarter, with a record number of individuals as of date.
• Strong financial position with NOK 866m (£60m) in available liquidity including committed undrawn credit facilities. Additionally, the company has NOK 1,450m (£100m plus ) in earmarked construction financing.

Trond Schaug-Pettersen shared his insights as part of the panel for Fish Farmer’s Aqua Agenda webinar on Land Based Strategy. Read the report in the November issue of Fish Farmer.

Salmon Evolution facility at Indre Harøy, Norway