With very low mortality levels, Batch 2 is on track to exceed the result and a profit of NOK 47.7 million (EUR 41 million) (USD 45 million) with which Salmon Evolution closes its 2022's annual report.
However, these are not the only data to highlight, because the company has increased operating expenses. The 2022 figure amounted to NOK 65.5 million (EUR 5.67 million) (USD 6.20 million) an increase of NOK 39.6 million (EUR. 3.43 million) (USD 3.75 million) more than in the same period last year. The increase reflects the higher level of activity in the Company, as well as the expansion in South Korea and North America.
The year 2022 has been a year in which Salmon Evolution has managed to become a fully operational salmon farm after 6 years of hard work. The company explained that it is very satisfied with the biological results seen and considers the results obtained as a proof of concept for its approach to land-based salmon farming.
Trond Håkon Schaug-Pettersen, the CEO, explained that they have a positive view of the long-term demand. "Throughout 2023 we expect a significant ramp-up in harvest volumes alongside increasing production. Given the strong salmon prices seen so far this year, we should be very well positioned to capitalize on this."
The reason for this is that total exports of Norwegian salmon during 2022 were approximately 1.44 million. tons compared to 1.48 mill. tons in 2021, a decrease of approximately 2.5%. The average Fishpool salmon price between 2022 and 2021, shows an increase of 43 % year-on-year. This significant price increase demonstrates the underlying demand for salmon is strong. Entering 2023, prices have remained record high, and forward prices for 2023 also point to high prices.
Batch 1 was harvested in three rounds from early November to early December, after only 7-8 months of production. The salmon was distributed worldwide to selected customers and partners in different segments and channels.
In addition, Salmon Evolution has received good feedback on product quality. One of the data on which this can be confirmed is by an industry-leading top share of 96% for batch 1 -as a whole-. Furthermore, the harvest proved that the salmon is suitable for conventional cooking as well as for raw and smoked consumption. A fact that creates a lot of flexibility for their downstream operations.
Salmon Evolution is land-based in Indre Harøy (Norway). This salmon farming company targeting a production capacity of 100,000 tonnes HOG by 2032. The Company's core focus is on extending the ocean's potential by transferring the best preconditions offered by the sea to farm fish on land through its chosen hybrid flow-through system technology (HFS). This secures a truly sustainable production process with controlled and optimal growth conditions and limits operational and biological risk.
