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Introduction & Market Context
Andfjord Salmon AS (OB:ANDF) presented its Q2 2025 status and progress report on September 4, highlighting significant fundraising achievements and construction milestones as the company prepares for its next phase of smolt release. The stock closed at NOK 35.3 on September 3, up 1.15% ahead of the presentation, and has traded between NOK 27.2 and NOK 43.0 over the past 52 weeks.
The company continues to position itself as a pioneer in sustainable aquaculture, developing what it describes as "the world’s most fish-friendly and sustainable salmon farming facility" at Kvalnes on Andøya in northern Norway. Andfjord’s approach aims to combine the benefits of traditional sea-based farming with the advantages of land-based operations.
Quarterly Performance Highlights
The second quarter of 2025 was marked by significant financial and operational achievements for Andfjord Salmon. The company successfully raised NOK 1.15 billion through a combination of a NOK 400 million private placement and a NOK 750 million bond issue. Additionally, a sale-leaseback arrangement of the Kvalnes harbour generated gross proceeds of NOK 400 million, further strengthening the company’s financial position.
A major milestone highlighted in the presentation was the completion of waterways that will support an annual production capacity of 48,100 tonnes (HOG + post-smolt). This included successful breakthroughs of both inlet and outlet tunnels, completion of the branch tunnel to pool KO, and filling the inlet tunnel with water.
The company’s first production cycle demonstrated impressive key performance indicators that exceeded industry averages across multiple metrics:
These results underscore the potential of Andfjord’s innovative farming approach, combining the natural advantages of its Arctic location with controlled land-based conditions.
Financial Analysis
Andfjord Salmon reported an operating loss of NOK 28,380 for Q2 2025, with total operating expenses of NOK 29,307. The company’s financial income stood at NOK 1,811, resulting in a net loss of NOK 26,791 for the period.
The balance sheet shows total assets of NOK 4,476,621, with non-current assets accounting for NOK 3,382,146. The company’s equity position remains solid at NOK 2,177,761, representing an equity ratio of approximately 49%. Total liabilities amount to NOK 2,298,860, split between non-current liabilities of NOK 1,544,366 and current liabilities of NOK 754,495.
The statement of cash flows reveals a negative cash flow from operating activities of NOK 39,621 and from investing activities of NOK 262,101, offset by a positive cash flow from financing activities of NOK 1,087,644, resulting in a net increase in cash and cash equivalents of NOK 785,922 for the quarter.
The company’s financing strategy and capital expenditure plans are detailed in the following slide:
This revised CAPEX budget outlines the company’s phased expansion approach, with accumulated production capacity projected to reach 48,100 tonnes upon completion of all five phases.
Strategic Initiatives
Construction progress at the Kvalnes site continues to advance, with Phase 1 build-out nearing completion. According to the presentation, waterways are 100% finished, concrete works for pools K1-K4 are 85% complete, and technical infrastructure is 99% installed. The harbor is now operationally ready, with dredging work completed and armor stone installation ongoing.
As shown in the construction timeline below, the company is progressing toward production readiness while simultaneously planning for Phase 2a expansion:
A key upcoming milestone is the planned smolt release, scheduled to begin in late September 2025. Approximately 1.1 million smolt will be released in total this autumn, with about 350,000 destined for pool KO in late September and approximately 750,000 for pool K1 in late October. This represents a significant scale-up of commercial operations for Andfjord Salmon.
The company is also focused on technological improvements to enhance production efficiency. Investments have been made in an Optoscale system to monitor feeding processes, fish development, and fish welfare, with the goal of improving the feed conversion ratio (FCR). Andfjord continues its collaboration with Skretting on specialized grow-out feed incorporating Calanus, which contributed to the strong results in the first production cycle.
Forward-Looking Statements
Andfjord Salmon’s presentation indicates that the company is well-positioned to progress with its expansion plans following recent regulatory clarifications for land-based aquaculture. The new regulations define Andfjord’s locations as "on land," meaning existing facilities won’t be subject to new purification requirements unless significant modifications are made. This allows the company to move forward with applications for salmon farming licenses at additional sites in Breivik and Fiskenes on Andøya.
The company’s immediate focus remains on completing the technical infrastructure testing prior to the upcoming smolt release. This includes filling tunnel infrastructure with seawater to initiate circulation, testing the fish logistics system and SCADA control system, and preparing for smolt delivery from wellboats.
Looking ahead, Andfjord Salmon aims to continue its phased expansion approach while pursuing improvements in operational efficiency. The company’s summary and outlook emphasize the successful fundraising, completed waterways, on-track build-out of Kvalnes Phase 1, targeted FCR improvements, and preparations for the imminent smolt release.
The next quarterly update is scheduled for November 27, 2025, when the company will report on its Q3 2025 performance and provide updates on the smolt release operations.
Full presentation:
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