Earnings Release • Mar 23, 2022
Earnings Release
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Andfjord Salmon: On track for release of smolt in Q2 2022 | Q4 and full-year 2021 interim financial results
23.3.2022 07:00:01 CET | Andfjord Salmon | Inside information
Andfjord Salmon successfully verified its unique laminar water flow technology
during the fourth quarter of 2021. The company has now started preparations for
release of first smolt, which is planned for the second quarter 2022.
"From an operational viewpoint, the fourth quarter of 2021 was the most
important and positive quarter in Andfjord Salmon's history. We completed
testing of pool functions and successfully verified the laminar water flow
technology at our first pool at Kvalnes. This technology confirmation has
de-risked our business case substantially," says Martin Rasmussen, CEO of
Andfjord Salmon.
The laminar water flow is the heart of Andfjord Salmon's flow-through
technology. The technology has enabled Andfjord Salmon to recreate wild salmon's
natural habitat on land.
A flow-through system with laminar water flow reduces energy consumption and
associated costs significantly as there is no need to lift, filter or heat the
seawater. Simply because the seawater is clean and holds a perfect temperature
as it is sourced directly from the nearby Andfjorden, which has the Gulf Stream
as one of its closest neighbours.
Throughout this year's first quarter, Andfjord Salmon has been working on
fine-tuning and pool functions, components and the laminar water flow. The
company has also started preparations for release of first smolt.
"We are on track for our planned smolt release in the second quarter. The smolt
is growing well in the smolt facility, so now it is about identifying the ideal
timing from a biological perspective," says Martin Rasmussen.
KVALNES PHASE 2 AND 3
For the next phase at Kvalnes (Phase 2), Andfjord Salmon has completed the
scraping of the area. A couple of weeks ago, blasting and excavation work
started on the next pools. The pools closest to the first pool will be excavated
first.
Phase 1 and 2 at Kvalnes represent a total production volume of approximately
12,600 tonnes HOG, whereas phase 3 will take production volume up to 19.000
tonnes HOG.
STRATEGIC INVESTORS
Subsequent to year-end, Nutreco, a global leader in animal nutrition and
aquafeed, and Norwegian seafood group Holmøy (through Eidsfjord Sjøfarm AS)
agreed to invest in Andfjord Salmon, as part of a NOK 38 million private
placement.
"Both Nutreco and Holmøy are experts in salmon biology. There is no doubt in my
mind that a key contributing factor to securing their investments was the
successful verification of the laminar water flow, which unlocks the ability to
produce salmon in a highly energy efficient and sustainable way," says Martin
Rasmussen.
In addition, Andfjord Salmon entered into an operational feed supply agreement
with Nutreco's aquaculture business line, Skretting. Skretting will supply a
feed that is specifically tailored to Andfjord Salmon's flow-through technology
to ensure optimal water quality, fish welfare and growth conditions. This will
enable the production of a premium quality salmon.
Q4 2021 INTERIM FINANCIAL RESULTS
Andfjord Salmon is currently developing its first land-based salmon farming
facility, which means that the company does not yet generate revenues.
The company had an operating loss of NOK 9.4 million in the fourth quarter of
2021, versus a loss of NOK 7.1 million in the same quarter last year. The change
is mainly related to higher personnel costs as Andfjord Salmon has conducted a
planned ramp-up of its organization in preparation for start of salmon
production.
At year-end 2021, Andfjord Salmon had bank deposits and receivables of NOK 49
million. This figure does not include a NOK 20 million undrawn credit facility
or NOK 6 million in available grants. Neither does it include proceeds from the
NOK 38 million private placement conducted in February 2022.
PRESENTATION AT 08:00 CET
A presentation of operational status and the fourth quarter and full-year 2021
interim financial results will be held at 08:00 CET today. The presentation
material is attached to this announcement. The webcast presentation can be
accessed from this link:
https://channel.royalcast.com/landingpage/hegnarmedia/20220323_3/
DISCLOSURE REGULATION
This is information that Andfjord Salmon AS is obliged to make public pursuant
to the EU Market Abuse Regulation (MAR) Article 17 no. 1. The information was
submitted for publication, through the NTB Kommunikasjon service by the contact
persons listed above.
CONTACTS
* Bjarne Martinsen, CFO, Andfjord Salmon AS, +47 975 08 345,
* Martin Rasmussen, CEO, +47 975 08 665, [email protected]
ABOUT ANDFJORD SALMON
About Andfjord Salmon AS
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.
www.andfjordsalmon.com - http://www.andfjordsalmon.com
ATTACHMENTS
Andfjord Salmon Q4 2021.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/1300/1745/Andfjord%20Salmon%20Q4%
202021.pdf
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