Kurs & Likviditet
|Sektor||Handel & varor|
|2021-10-13||Extra Bolagsstämma 2021|
|2021-05-07||Ordinarie utdelning ANDF 0.00 NOK|
ANDF: Andfjord Salmon AS announces potential plan for 50 percent growth in production volume | Q1 2021 interim financial results
4.6.2021 07:05:30 CEST | Andfjord Salmon | Non-regulatory press releases
Andfjord Salmon AS today announces an opportunity to initiate a volume expansion
plan at its Kvalnes facility. The plan involves increasing production volume by
around 50 percent, from 12,600 to 19,000 tonnes HOG. This is equivalent to an
annual EBIT increase from approximately NOK 350 million to NOK 500 million at
"We are constantly looking at ways to improve the Kvalnes build-out, both to
reduce project risk and to increase the long-term profitability of Andfjord
Salmon, to the benefit of our shareholders. To initiate the build-out of Kvalnes
Phase 3 is another such measure," says Martin Rasmussen, CEO of Andfjord Salmon.
New opportunity at Kvalnes
Andfjord Salmon is currently in process of acquiring additional 63,000 square
meters of land area adjacent to its site at Kvalnes. This land area purchase
unlocks an opportunity to initiate a further expansion at Kvalnes, with a
possibility to increase production volume by approximately 50 percent, from
today's 12,600 tonnes to 19,000 tonnes, equivalent to a potential EBIT increase
of approximately NOK 150 million at full production.
By initiating the Kvalnes Phase 3 build-out now, Andfjord Salmon is able to
capitalize on a window of opportunity that can lower build-out costs notably. It
will also allow the company to harvest improved economics at scale at Kvalnes
earlier than planned, which means improved profitability. The alternative plan
involves shifting the release of smolt in the first pool to the second quarter
of 2022 and will significantly strengthen the mid and long-term revenue
potential for Andfjord Salmon.
Initiating Kvalnes Phase 3 will also further reduce biological risk at Phase 1
and Phase 2 at Kvalnes. It will allow an even longer test period of the first
pool, plus further reduce the risk that fish from Phase 1 and Phase 2 suffer
stress from noise/vibrations from nearby construction work.
"It is the management's view that clearing the path to realize a potential 50
percent growth in production volume at Kvalnes, at lower build-out cost than we
will achieve at a later stage, is an attractive proposition that more than
outweighs the consequence of moving first smolt release to 2022," says Martin
The alternative plan is subject to approval by the Andfjord Salmon board of
directors and necessary financing. Should the plan be approved, debt financing
will be the source of financing for the early initiation of Phase 3 at Kvalnes.
First pool technically complete
Andfjord Salmon is currently putting the finishing touches on the first pool
(Phase 1) and conducting the excavation work for the next pools at Kvalnes
(Phase 2), representing a total production volume of 12,600 tonnes HOG.
The construction of the first pool is finalized, with only minor
post-construction installations remaining on the pool, making it technically
ready to be filled with water.
The installation of the outer joints to the pool's water inlet pipeline remains.
Andfjord Salmon has discovered damage to the outer connection point of the
installed water inlet pipeline and a replacement section has been ordered. The
company estimates that it will take approximately 8-10 weeks and a cost of NOK
30 million to complete the repair. This work has already commenced.
"This has increased the relevance of initiating the Kvalnes Phase 3 build-out
now, because it will eliminate time constraints associated with repairing the
inlet pipeline section," says Martin Rasmussen.
Q1 2021 interim results
Andfjord Salmon is currently building up its first land-based salmon farming
facility, which means that at present it does not generate revenues. The company
had an operating loss of NOK 7.3 million this year's first quarter compared to a
loss of NOK 3.3 million in the corresponding quarter last year.
As of 31 March 2021, Andfjord Salmon held cash or cash equivalents of NOK 88.8
million. This figure does not include a NOK 35 million undrawn credit facility
of NOK 15 million in available grants.
Q1 operational update presentation
The presentation material for today's operational update and Q1 2021 interim
results, to be presented at 08:00 CET today, is enclosed to this announcement.
The webcast presentation can be followed from this link:
This information is subject to the disclosure requirements set out in section
5-12 of the Norwegian Securities Trading Act.
* Bjarne Martinsen, CFO, Andfjord Salmon AS, +4797508345,
* Martin Rasmussen, CEO, +47 975 08 665, firstname.lastname@example.org
ABOUT ANDFJORD SALMON
About Andfjord Salmon AS
Andfjord Salmon has developed an innovative and sustainable aquaculture concept
for shore-based farming of Atlantic salmon, based on a flow-through farming
concept. The company's ambition is to build the world's most sustainable
aquaculture facility of its kind. The facility is escape-proof, lice-free and
its highly filtered effluent avoids polluting marine life.
Located at Kvalnes on the island of Andøya on the Arctic Archipelago of
Vesterålen, Norway, the company's first facility is currently under
construction. The company holds a license to produce 12 600 tonnes (HOG) for
land-based farming of Atlantic salmon and has secured rights to land for a
planned expansion of an additional 77,400 tonnes (HOG) production capacity.
Further expansion is subject to the zoning of the land and granting of licenses.
Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF.
www.andfjordsalmon.com - http://www.andfjordsalmon.com/
The information in this announcement is subject to disclosure requirements under
the EU Market Abuse Regulation and Euronext Growth listing rules. The
information was submitted for publication by the contact person set out above.
Andfjord Salmon AS Q1 2021 report.pdf -