Salmon Evolution CFO Trond Vadset Veibust (left) joined CEO Trond Håkon Schaug-Pettersen (right) today during the presentation of Q4 2024 results.
Photo: Salmon Evolution.
Salmon Evolution reported its Q4 2024 results today. "We are very pleased by ending 2024 with a new harvest record and strong KPIs, highlighting the significant milestones we have achieved the last 12 months," said CEO Trond Håkon Schaug-Pettersen, taking stock of what has been achieved.
In its mid-January operational update, the Norwegian land-based hybrid flow-through salmon farmer had already announced that it had closed 2024 with solid operating and financial results, and the final figures have confirmed this. The company generated NOK 149.5 million (EUR 12.9 million / USD 13.3 million) in revenues in the fourth quarter, translating into a group EBITDA of NOK 9.2 million (EUR 794.2 thousand / USD 819.5 thousand), and a Farming EBITDA of NOK 15.3 million (EUR 1.3 million / USD 1.3 million).
Supported by stable operations at Indre Harøy and Dale, the fourth quarter continued the growth trend the company had been achieving in Q1, Q2, and Q3. "2024 have further strengthened our position as the leading land-based salmon farmer globally," Schaug-Pettersen summed up.
As said, Salmon Evolution ended Q4 2024 with a new harvest record with total harvest of 1,729 tonnes HOG. This figure is including post-smolt. The land-based salmon producer has utilized excess capacity at Indre Harøy during the second half of 2024 to produce post-smolt for external sale.
Although it did not disclose the name of the recipient company - the results presentation mentioned "a well-known salmon farmer" - Salmon Evolution did say that the first group of post-smolt was delivered in December, comprising approximately 150k individuals at ~700 grams (about 105 tons LW), and that there was a second delivery in mid-January.
The company added that a price was set at market terms, and that both groups have performed well following the offshore transfer, "a testament to the good fish-health at Indre Harøy." Moreover, it has already secured overcapacity on smolt for 2025 which is planned utilized for post-smolt deliveries.
Likewise, Salmon Evolution also pointed out that the strategy of postponing the harvest to the second half of 2024 yielded results, getting a solid price achievement. The fact that 96% of the harvested salmon was of superior grade share, above the target of 95%, undoubtedly contributed to this.
Standing biomass at the end of Q4 at approximately 2,000 tons LW. The land-based farmer noted that these stable operations support a continued positive growth trend at Indre Harøy, with biomass growth of 1,518 tons LW during the quarter, the second highest level on record, up 11% quarter-over-quarter.
"We are entering 2025 with a fully stocked farm and a positive trend, providing strong growth momentum going forward," Trond Håkon Schaug-Pettersen highlighted.
With a strong financial position with NOK 684 million (EUR 59 million / USD 60.9 million) in available liquidity, including committed and undrawn credit lines, and NOK 1,450 million (EUR 125.1 million / USD 129.2 million) in earmarked construction financing, progress on the Phase 2 expansion project at Indre Harøy remained solid during the quarter.
With 90-100 workers on site, steadily increasing as activity intensifies, works are progressing well and the project is on budget and on schedule, on track for the first smolt launch in the first quarter of 2026, as planned.
During the results presentation, Trond Håkon Schaug-Pettersen recalled that all permits are in place in Indre Harøy. The facility is permitted for up to 36,000 tons of HOG, and once Phase 2 is operational significant economies of scale will be unlocked.
"We are on plan and budget and are very happy with the progress at the building site," Salmon Evolution CEO said. "With Phase 2 up and running we will have an operational strength few in the industry can rival."
As for the company's expansion plans, Schaug-Pettersen said that, for the time being, there was nothing new to report regarding international projects. In South Korea, Salmon Evolution focused on capital discipline and leveraging human capital, and is working with the authorities on governmental financial support.
Regarding North America, where the company is in advanced negotiations on a high-potential site whose initial verification processes indicate that it is ideal for a hybrid flow-through system, the CEO of Salmon Evolution said they are following the geopolitical situation closely. "Clearly, the introduction of potential tariffs may have an impact on economics, so this is something we have to have more clarity on before committing significant resources," he added.
The hybrid flow-through facility at Indre Harøy has always been seen as the foundation for further growth not only internationally but also within Norway. Now, at the Q4 2024 results presentation, Salmon Evolution's CEO confirmed the company's plans.
"I also want to add that they are seeing additional opportunities in Norway, also outside of Indre Harøy, and I think for us it's very clear that in the same way as for conventional farming, we strongly believe that Norway will be the cost leader also for land-based and it's simply because of all the infrastructure you have and also the highly effective value chain," he said.
According to the information provided, Salmon Evolution is currently evaluating several potential expansion sites in Norway, with similar, optimal farming conditions as Indre Harøy. Added to that is what the company has described as "tangible potential for further expansion at Indre Harøy" outside the 36,000t HOG already planned and permitted by leveraging the existing infrastructure and cost base.
With strong biological and financial results; competitive farming costs - which are expected to improve further with expansion and lower feed costs -; Phase 2 fully funded and underway; its land-based salmon marketed in a smoked salmon consumer pack under the premium Lofoten brand; and attractive market prospects, with strong prices forecast for 2025 and beyond, Salmon Evolution concluded by saying that it is "creating a foundation for substantial profitable growth."
