Land-based fish farmer Andfjord Salmon made £2.8m from its first harvest
Norwegian company salughtered 646 tonnes and achieved NOK 70 per kilo
Norwegian land-based fish farmer Andfjord Salmon reached a significant milestone in June/July when it completed its first harvest from its proof-of-concept flow-through pilot pool.
According to a half-year report from the company, the results showed a survival rate of 97.5% and a superior share of 91.1%.
The total biomass of Atlantic salmon harvested reached 646 tonnes, equivalent to approximately 530 tonnes head on gutted, with an average weight of approximately 3.4 kilograms per fish.
The first harvest generated revenues of NOK 37.1 million (£2.8m), of which NOK 27.5 million will be booked in the third quarter of this year.
NOK 70 per kilo
This gives a salmon price of approximately NOK 70/kg (HOG) for everything. Note: this figure cannot be directly compared to the official spot price or the NASDAQ price, as it is given only for the superior share.
As much of the income for the harvest is booked for the third quarter, the operating income for Q2 is stated at NOK 9.6m, compared to zero in the same period last year. At the same time, Andfjord reports an operating loss of NOK 18.1m on Q2, which reflects the costs associated with expansion.
The company says the timing of the harvest was strategically chosen to reduce the risk associated with project implementation for Andfjord Salmon’s expansion plan at Kvalnes on the island of Andøya, with expectations of higher average harvest weights in future batches.
Chief executive Martin Rasmussen said in the half-yearly report that the company had received positive feedback from customers regarding the quality of the salmon.
On the road to 40,000 tonnes
According to the half-year report, Andfjord Salmon has taken significant steps during the second quarter of 2023 and subsequent months to realise its long-term ambition of a total production capacity of 40,000 tonnes (HOG) at the facility at Kvalnes.
In June, the company announced a commitment to bank financing totalling NOK 900m, comprising NOK 825m in new financing and refinancing of existing debt of NOK 75m. These funds are essential to secure the company’s goal of gradually increasing production capacity to 40,000 tonnes between 2025 and 2030, with an initial target of 8,000 tonnes (HOG) set for 2025.
Furthermore, Andfjord Salmon successfully completed an issue of new shares, raising approximately NOK 615m.
“Several of the company’s largest shareholders are involved in this private issue, which underlines their confidence in the company’s growth prospects,” said the company.
Port facilities
In the initial construction phase, Andfjord Salmon is focusing on increasing production capacity to 8,000 tonnes while developing shared infrastructure, including waterways and port facilities, to facilitate future production of 40,000 tonnes at Kvalnes.
The company is also actively working to develop two other locations, Breivik and Fiskenes, which are further north on the same east coast on Andøya as Kvalnes. Andfjord Salmon’s long-term ambition is to achieve a total production volume of 90,000 tonnes from all three locations.
With extensive preparations and the deployment of personnel and equipment during the summer, the foundation works at Kvalnes are now in full swing. The excavated material is being used for the development of port and quay areas, which contributes to cost efficiency and reduced CO2 emissions during the construction process.
Preparatory work with blasting and excavation of waterways started as planned in early September.
