Andfjord Salmon reports “solid growth” in 2022

The salmon farmer reports strong growth and high survival rate at its land-based pool at Andøya, Norway, with first harvest due in mid 2023.
Andfjord Salmon is based in the village of Kvalnes on Andøya island, Norway. Photo: Adobe Stock.
Andfjord Salmon is based in the village of Kvalnes on Andøya island, Norway. Photo: Adobe Stock.

Norwegian land-based salmon farming company Andfjord Salmon is on track for a successful first production cycle, according to its Q4 reports.

The company, which uses innovative seawater flow-through technology in its facility in Kvalnes, Andøya, expects its first harvest in mid-2023.

Andfjord Salmon reports strong growth and high survival rate due to good biological conditions, with its salmon weighing an average of 2.2 kilos as of 15 March 2023. Its accumulated feed conversion ratio was 0.94, meaning each fish requires 0.94 kilograms of feed to grow 1 kilogram.

Strong growth and good fish welfare confirmed by Nofima

"We are very pleased with the growth rate during the dark season, when the water is also colder. At year end, the growth was approximately 40 percent ahead of our original estimate, which was based on expected seawater temperature and Skretting's growth table for salmon. I am also pleased that our feed conversion ratio remains good," said Martin Rasmussen, CEO of Andfjord Salmon.

The company also reports it has received external verification of good fish welfare from Norwegian research institute Nofima.

"To receive this independent third-party verification from a renowned research institute is highly valuable for Andfjord Salmon. We have always been confident in the many benefits of our flow-through system. This report confirms that we were right to be positive about the development of our fish," Rasmussen added.

Andjford Salmon's first pool now fully operational

Andfjord Salmon's operating loss was NOK 22 million during Q4 2022, compared 10.1 million in the same quarter last year. The difference, the company says, is mainly related to higher operating expenses due to the first pool becoming fully operational.

At year end, Andfjord Salmon held cash and deposits of NOK 82.9 million, not including undrawn credit facilities of NOK 25 million. The company describes their liquidity as "at a comfortable level for the current operational phase".

Plans to expand capacity to 90,000 tonnes

Presenting the results, Rasmussen explained how the company plans to ramp up its production by expanding its Kvalnes facility. Andfjord Salmon has secured land on Andøya enabling an increase in total annual production volume to approximately 90,000 tonnes.

Rasmussen says the company has support from local authorities for its plans, and confirms that the licensing process for expansion is in progress. The company is currently in final stages of contract discussions with suppliers regarding the most efficient plan for development.

During spring 2023, Andfjord Salmon will invite shareholders to a capital markets' update on the build-out plan and timeline for its second phase development.

About Andfjord Salmon

Located at Kvalnes on the island of Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord Salmon has developed an innovative and sustainable aquaculture concept for land-based farming of Atlantic salmon, based on a flow-through technology solution. The company's ambition is to build the world's most sustainable and fish-friendly aquaculture facility of its kind. Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF.

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