Andfjord Salmon has reported a net loss of NOK 18 million for Q1 2025, compared to a loss of NOK 15.7 million in the same period last year.
Photo: Andfjord Salmon
Andfjord Salmon has reported its results for the first quarter of 2025 and provided an update on the progress of key facility completions at the Kvalnes site, whose final construction costs have exceeded the initial estimates.
This increase in costs is primarily due to concrete production, additional mobilization of labor and equipment, design adjustments, and the impacts of adverse weather, confirmed the Norwegian land-based aquaculture company.
It also recently announced a revised build-out plan that will increase production capacity at the Kvalnes site by 20%. That is, the total expected production at Kvalnes will rise from 19,000 to 23,700 tonnes, and once fully scaled, it will produce 48,100 tonnes.
Specifically, the total construction and investment cost per kilogram of expected salmon production (CAPEX) has increased from NOK 105 to NOK 115. Moreover, Andfjord Salmon has reported a net loss of NOK 18 million for Q1 2025, compared to a loss of NOK 15.7 million in the same period last year.
In order to fund part of the updated CAPEX, Andfjord Salmon has secured a capital injection of NOK 400 million by issuing more than 10 million new shares to several existing shareholders.
The company "has chosen to front-load selected investments to preserve long-term development momentum and generate future efficiencies," a statement reads. Also, it is likely to finance additional working capital through a new bond issuance.
Furthermore, in its fourth-quarter 2024 financial results, the company reported completing a successful NOK 600 million private placement to advance its expansion plans.
Finally, the company plans to begin the smolt release in September 2025, provided that the pond and technical infrastructure tests are successful in July and August.
"The upcoming smolt release marks a significant milestone for Andfjord Salmon. After more than two years of construction, we look forward to seeing fish in our pools again," said Martin Rasmussen, CEO of Andfjord Salmon.
