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Introduction & Market Context
Andfjord Salmon AS (OB:ANDF) presented its Q1 2025 status update on May 28, highlighting significant construction progress and strong financial backing for its innovative salmon farming facility at Kvalnes, Norway. The company, which aims to combine the best elements of sea-based and land-based salmon farming, reported several key milestones that position it for its first commercial smolt release in September 2025.
Trading at NOK 36.8 per share as of May 27, 2025, Andfjord Salmon has seen its stock fluctuate between NOK 28.5 and NOK 43 over the past 52 weeks, reflecting investor interest in its unique approach to sustainable aquaculture.
Quarterly Performance Highlights
The company’s first production cycle demonstrated impressive performance metrics compared to industry standards. Andfjord’s innovative flow-through system delivered exceptional results across key performance indicators.
As shown in the following performance metrics chart:
These results validate Andfjord’s farming approach, with a survival rate of 97.5% (versus 83.3% industry average), a feed conversion rate of 1.05 (versus 1.27 industry average), and superior share of 91.1% (versus 85.1% industry average). The company also achieved stronger growth with an extra kilo compared to standard growth tables, while using only 1 kWh of energy per kilo of salmon produced.
The Q1 period and subsequent weeks brought several significant developments:
Construction Progress Update
The most significant milestone achieved was the breakthrough to Andfjorden on May 22, 2025, which the company described as a critical de-risking event for the build-out process and subsequent farming operations. This breakthrough established the outlet tunnel at 70 meters below sea level.
As illustrated in the following construction update:
The waterways construction is proceeding on schedule, with capacity to support annual production of 48,100 tonnes. The inlet waterway has been completed, and the outlet tunnel is currently filled with seawater following the successful breakthrough.
Pool (NASDAQ:POOL) construction is also advancing as planned:
Four pools are being constructed in Phase 1, with columns, supports, and preparations for wall elements completed for pools K1 and K3. All UHPC (Ultra-High Performance Concrete) wall elements for pool K1 have been produced, and technical infrastructure installation is ongoing in K1 and K3.
The overall build-out timeline shows significant progress across all major construction elements:
Excavation of Phase 1 and 2 pool pits is 100% complete, while waterways and harbor construction is 81% finished. Concrete works for pools K1-K4 are 74% complete, and technical infrastructure installation is 45% finished. All elements remain on track for the planned smolt release in Q3 2025.
Funding and Financial Position
Andfjord Salmon has secured substantial funding to support its expansion plans. In February 2025, the company announced NOK 1.4 billion in funding for its Phase 2 expansion through multiple sources:
The funding package includes a construction loan of up to NOK 400 million, a term sheet for the sale of harbor area to Asset Buyout Partners estimated at NOK 400 million, and a private placement that raised NOK 600 million with strong support from key investors including Jerónimo Martins (NOK 226 million) and High Liner Foods (NOK 114 million).
Additionally, the company secured an equity injection totaling NOK 400 million from existing shareholders, with Jerónimo Martins contributing NOK 300 million and three other shareholders providing the remaining NOK 100 million.
Financially, Andfjord Salmon reported an operating loss of NOK 19.07 million for Q1 2025, with total assets of NOK 3.13 billion as of March 31, 2025. The company is preparing for a bond issue, with Arctic Securities mandated as Global Coordinator and Joint Bookrunner, and Nordea and SpareBank 1 Markets as Joint Bookrunners.
Production Capacity Improvements
A significant development highlighted in the presentation was the optimization of production logistics, which will enable a 20% increase in production volumes:
The redesigned water flow and fish logistics system allows for gentler and lower-risk movement of fish through a network of underground piping. This innovation, along with reinforced concrete walls for increased water flow and levels, has raised the annual production estimate from 19,000 tons to 23,700 tons.
The company’s phased expansion plan aims to reach a total production capacity of 48,100 tonnes HOG (Head-On Gutted) plus post-smolt at the Kvalnes site:
Forward-Looking Statements
Andfjord Salmon expects to begin testing all equipment and infrastructure in July/August 2025, with smolt release scheduled for September 2025. The company remains on track with its Phase 1 build-out and has already initiated Phase 2A construction.
The revised CAPEX plan maintains maximum progress while achieving efficiency gains. The company’s next quarterly update is scheduled for September 4, 2025.
With its innovative farming approach demonstrating promising initial results, substantial financial backing, and construction progress on schedule, Andfjord Salmon appears well-positioned to execute its vision of creating "the world’s most fish-friendly and sustainable salmon farming facility of its kind."
Full presentation:
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