Earnings call transcript: Salmon Evolution Q2 2025 sees challenges amid weak market

Salmon Evolution Holding AS reported its financial performance for the second quarter of 2025, highlighting challenges due to weak salmon prices and increased farming costs. The company’s earnings call revealed a Q2 Group EBITDA of NOK -25.6 million, with revenues impacted by market conditions. According to InvestingPro data, the company has been quickly burning through cash, though it maintains a healthy current ratio of 1.8. Despite these hurdles, the company is optimistic about future growth, driven by ongoing construction projects and strategic positioning for market recovery in 2026. The stock experienced a slight decline, closing at NOK 5.12, down 0.58% from the previous day, and is currently trading near its 52-week low.

Key Takeaways

• Salmon Evolution reported a Q2 Group EBITDA of NOK -25.6 million, affected by weak salmon prices.
• The company is progressing with phase two construction, targeting a production increase.
• Harvest volumes reached 1,232 tonnes, with an all-in price realization of NOK 72 per kilo.
• The stock closed down 0.58%, reflecting investor concerns over current market challenges.
• The company anticipates a market recovery and potential price upside in 2026.

Company Performance

Salmon Evolution faced a challenging quarter due to weak salmon prices and temporary higher farming costs. The company’s Q2 Group EBITDA stood at NOK -25.6 million, with farming EBITDA at NOK -13 million. Harvest volumes reached 1,232 tonnes gutted, but the market’s weakness impacted revenue. Despite these setbacks, the company is focusing on increasing production capacity and improving operational efficiency to capitalize on future market recovery.

Financial Highlights

• Revenue: Impacted by weak salmon prices, specific figures not disclosed.
• Q2 Group EBITDA: NOK -25.6 million.
• Q2 Farming EBITDA: NOK -13 million.
• Harvest volumes: 1,232 tonnes gutted.
• All-in price realization: NOK 72 per kilo.

Outlook & Guidance

Salmon Evolution maintains a positive outlook, forecasting a harvest volume of 5,000 tonnes gutted for 2025. The company expects a 20% production increase from 2024 and aims to double production with phase two construction. The management is positioning the company for a market recovery in 2026, anticipating supply changes that could lead to price increases.

Executive Commentary

CEO Trun Hakon Skeppataschen emphasized the company’s focus on maximizing phase one utilization, stating, "For now, it’s all about maximizing utilization of Phase one." CFO Trun Badsat Weibust highlighted cost efficiencies, adding, "The more we produce, the lower cost per kilo we have." These comments reflect the company’s strategic focus on operational efficiency and cost management.

Risks and Challenges

• Weak salmon market: Continued price weakness could impact future revenues.
• Increased farming costs: Temporary higher costs may affect profit margins.
• Regulatory compliance: Adherence to new farming regulations could pose operational challenges.
• Market volatility: Fluctuations in salmon prices may affect financial performance.
• Supply chain issues: Potential disruptions could impact production timelines.

Q&A

During the earnings call, analysts inquired about the company’s exposure to the U.S. market and its future price hedging strategies. Management indicated minimal U.S. market exposure and is exploring hedging options to mitigate price fluctuations. Additionally, the company is focusing on maximizing current operations before considering further expansion.

Full transcript - Salmon Evolution Holding AS (SALME) Q2 2025:

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Okay. Good morning, everyone, and welcome to this presentation of Salmon Evolution’s results for the second quarter. My name is Trun Hakon Skeppataschen. I’m the CEO of the company. With me here today also our CFO, Trun Badsat, Weibust.

And as you can see from the picture here, we’ve had a busy first half of the year in Salmon Evolution with our Phase two construction project now really starting to take shape. And we are very excited in putting this facility into operation in just about seven months from now. So we will start this presentation by going through the highlights for the quarter, then I will take you through the operations and our ongoing growth initiatives before our CFO will go through the financials. And then we will end the presentation with some comments on outlook before we open up for a Q and A. For those of you who are attending virtually, you can submit questions via the webcast.

As to the highlights for the quarter, we are pleased to report that Phase two is progressing according to plan, on time and on budget and with the first malt being targeted for release late Q1 next year. We are also very satisfied in continuing to see stable operations across the farm with very low mortality rates and also a consistent high superior grade share. When it comes to production, the positive trend from the previous quarters continued when taking into account that we had a precautionary pause in feeding in the second quarter relating to Phase construction activities. We also ended the quarter with an all time high biomass and also a fully normalized biomass composition, which is very important in terms of taking out the full production potential at the farm. Harvest volumes ended at twelve thirty two tonnes gutted.

Clearly, the salmon price has been very weak both during the quarter and year to date, and this has impacted the financial results, where we in the second quarter saw a farming EBITDA of minus NOK 13,000,000 and a group EBITDA of minus NOK 25,600,000.0. The figures are also impacted by a temporary high farming cost in the second quarter due to certain nonrecurring factors related to harvest of underperforming groups that were affected by last year’s smalt quality issues. We will come more back to this later in the presentation. And finally, and especially given the soft salmon market, we are very pleased to have increased our financial flexibility with the new bank facilities totaling 300,000,000. So moving over to the operations.

As I mentioned, we continue to see stable operations across the farm with very low mortality rates. And I believe this is a strong testament to both the facility and the concept as well as our operational staff. Reported biomass production was more or less flat compared to Q1 and ended at 1,600 tonnes, but underlying production was higher since we, during the quarter, had a precautionary feed pause in feeding in connection with blasting activities for the Phase two water intake pipes, and this reduced the biomass growth by approximately 100 tons. So when you adjust for that, we are at 1,700 tons plus, which actually is a nice uptick from the first quarter. In Q2, we also harvested out the groups that were affected by last year’s smolt quality issues, which also represented a significant share of the biomass in the quarter.

So with these groups now out, we expect that to have a positive contribution to growth going forward. We also stocked two smolt groups in Q2, both of them above target weight. Over the last year, we have put a lot of effort into our smalt operation, and I think we are now really starting to see the positive effects from this with the right quality smalt delivered at the right time and also with the right size. And similar to the first quarter, we had a fully stocked farm now with more than 3,000 tons of standing biomass, which is a prerequisite for continued production growth. One of the core focus areas this year has been to improve the biomass composition, and we are now very pleased to see that as per end of Q2, this composition finally was fully normalized following the smold quality issues we had in the 2024.

The mix we have end of Q2 is close to ideal, both in terms of volume, individuals and also weight distribution. And as you can see from the chart here, end of Q2, 57% of the biomass was above three kilo versus 0% going into the year. And this obviously explains the fairly low harvest rates seen year to date. And going forward, this normalization will clearly have a positive impact on both harvest weights and also production costs. So hopefully, it will take a very long time until we have to harvest small fish like we’ve done in the first half again.

So now it’s all about maintaining this type of composition going forward, and that’s something we are now very well positioned to do. As communicated, we harvested twelve thirty two tonnes Getha during the quarter, and we continue to see a consistent high superior grade share of around 95%. Harvest weights ended at 2.9 kilo in Q2, up from 2.3 kilo in Q1 as we completed the normalization of the biomass composition. Thus now with a fully stocked farm and a normalized composition, both harvest weights and volumes will increase from the third quarter. When it comes to the salmon price, we had an all in price realization of NOK 72 per kilo.

The salmon price fluctuated a lot during the quarter, and our harvest was not spread out evenly, but we consistently see that we outperformed the reference price. And I think it’s also worth mentioning that we are seeing more and more interest in the market for the story that we represent, although obviously lack of harvest regularity is a key issue for many customers. So with now Phase two soon up and running, that’s something we very much look forward to as that will open up many new commercial opportunities as well. As to harvest guidance, we are now expecting around 5,000 tonnes ghetted in harvest volume this year. When it comes to the underlying production, there are no major changes from the last update.

But what we’ve done is that we have optimized the production plan and are prioritizing going into 2026 with as much biomass as possible, especially given the prevailing salmon market conditions and also expectations of a stronger salmon price next year. So about 500 tonnes, which was originally intended for 2025, is pushed into 2026. Also, we were planning to upsize two smalt stockings this fall and partially use these for post malt sales. As we have not been able to secure offtake commitments yet, this volume has been excluded for precautionary purposes. But we are continuing to explore opportunities for post malt sales towards the end of the year.

And finally, if you include the 50% increase in biomass we are expecting year on year, the underlying production that we are expecting this year is around 7,000 tonnes liveweight, which is approximately 5,800 tonnes gutted, which is 20% higher than the 2024. As mentioned, we expect both harvest weights and volumes to increase from Q3. And since the ambition is to only harvest the growth, the underlying biomass production is a good proxy for expected harvest volumes going forward. I would say we have taken huge steps over the last year and also really demonstrated that we can maintain stable operations over time with consistent and good biological KPIs. As I’ve said many times before, with an operation like this, it’s all about continuously improving in everything that we do to take out the full potential, and that is the focus of the organization at the moment.

As you can see from these charts, things are definitely moving in the right direction, both in terms of harvest volumes, but most importantly, in terms of underlying biomass production. So from a production perspective, we expect 2025 to be significantly better than 2024 in the same way as we expect 2026 to be better than 2025. Moving over to our growth initiatives. Just a quick reminder of how Indra Harai will look once the site is fully developed. It’s 36,000 tonnes in one location.

Obviously, the scale efficiency and that’s what we’ll be able to get out of this is quite unique. And I’m confident that once fully developed, we’ll have a production cost here that’s very hard to match. Phase two is now well underway with the first smelter release planned in Q1 next year. And with Phase two completed, we are actually halfway in our build out. And we are very much looking forward to put Phase two into operation as what we are building in Phase two is an improved copy of Phase one, building on all the experience of and learning from over three plus years of operating Phase one.

So we’re very confident that Phase two will be even better than Phase one in the same way as eventually Phase three will be better than Phase two. And that’s how it is in this business. It’s a constant pursuit of perfection. Indrahar is also a unique location. We have all the licenses in place for the full development of the island, and we’ve already made significant infrastructure investments that will benefit Phase three when we eventually move forward with that.

But first, Phase two, it’s all about completing that according to plan on time and on budget. Phase two will be a real game changer for the company, both in terms of establishing ourselves as a significant player, but also reaching critical mass and scaling the platform that we have. With Phase two, we more than doubled production. And we also dramatically increased our harvest regularity, which is very good from a commercial perspective. And it also leverages enables us to leverage the substantial investments already taken in systems, people and facilities.

So clearly, a game changer for the company. And as to Phase two construction, this is moving forward at a high pace and progressing according to plan on time and on budget. As you can see from the picture here, 10 out of 12 tanks are already assembled with the last two tanks being assembled now in August. Also, the building shells for four out of six technical rooms are assembled with the last two soon due for assembly. Now a lot of focus is devoted to process installation work, and this will be further intensified over the coming months.

And also on the intake station, the building itself is now completed. We have also installed two intake pipes, one going down to 95 meters and one going down to 25 meters. And this was a major milestone in the second quarter, very important milestone. In the intake station, our work is centered around process installation work, which is well underway. And as I said, we are on time and testing and commissioning of Phase two, where it commenced in just a few months, and we are now devoting a lot of resources into the preparations for significantly scaling up our operation over the coming year.

We already have a very good staff operating and managing Phase one, and we’re also adding additional operational resources. So that so we’re very confident that we’ll be able to scale up Phase two in an efficient manner. And as to the Phase two pre grow out tanks, planning and engineering activities are in the end phase and subject to a final investment decision during the second half of this year, we target completion aligned with the Phase two grow out facility. In the near term, obviously, two main priorities at the moment are continued operational excellence and taking out the full potential of Phase one as well as executing Phase two according to plan. With Phase two, we already have an 18,000 tonnes operation.

And with this, we have the critical scale needed for strong returns. And this also gives us a fantastic platform for further growth. And in terms of further growth, clearly, Phase three at Indra Hare is the obvious choice in the medium term. We have all the infrastructure in place, and I think you will have a very hard time finding a more attractive project than Indraharay. Longer term, we naturally have ambitions beyond Indraharay.

And being the global front runner, we believe that there’s still a lot of opportunities. But as I said, now it’s all about taking out the full potential of Phase one and executing Phase two according to plan. And that is the those are the most important enablers in terms of taking salmon evolution to the next level. I would also like to say a few words on the new regulation for land based that was announced by the Norwegian government this summer, and that has now come into effect. Clearly, we find it positive that we have now gotten clarification around the future regulatory framework for land based salmon farming.

The main takeaway is that filtering and disinfection of intake water becomes mandatory. From our side, we generally believe that the regulation is reasonable. And we also note that we with our hybrid floater system already is fully compliant, both for Phase one and Phase two. So from our perspective, this is a good thing as it reduced regulatory risk going forward and potentially also strengthens Norway’s position as the driving force for the development of the land based salmon farming industry. Okay, Tron?

: Thank you.

Trun Badsat Weibust, CFO, Salmon Evolution: All right, the financials. To state the obvious, although we are pleased to report continued improvement in key metrics and stable operations at Indra Hari. Financially, the second quarter is not something we are satisfied with. Firstly, we are fully exposed to the spot market. Last year, this strongly worked to our advantage.

In fact, we likely had the best price realization amongst the listed farmers in the 2024. This year, however, the salmon price has been significantly weaker, reflecting high supply growth. As a result, even with harvest volumes broadly in line with Q2 last year, revenues are down significantly and this represents the primary negative impact on EBITDA year on year. Second, farming costs in Q2 were elevated, driven by nonrecurring factors. This was primarily due to harvesting underperforming groups linked to last year’s smolt quality issues.

These groups delivered lower weights, reducing smolt yield and incurred higher feed costs due to less growth and higher FCR than anticipated. I guess what is positive with all of this is they were harvested in full during the quarter. So they are behind us. Taken together, the combination of weaker salmon prices and temporary cost effects in Q2 had a notable effect on our reported results. However, we expect a strong price recovery in 2026.

And on cost, the drivers behind this are nonrecurring in nature. The smolt quality issues from last year impacting performance in the 2025 have been resolved and underlying costs are lower than what is reflected in the reported figures. With stable operations at Indra Hari, minimal mortality and a scalable cost structure, we have significant operating leverage as volumes grow. So we did not hit the mark in the 2025. But looking back one year to the 2024 highlights what is possible even at an early stage at Indra Hardie.

And I think overall, the heading summarizes it well, better times ahead. And at Indra Harde, it is all about cost competitiveness. It’s all about good biology, capacity utilization and scale. After several years of operating their facility, we have deep insights into the underlying cost structure. In a fully operational farm, roughly half of the total costs are essentially fixed.

Smolt stockings follows our production plan with limited variations. It is all about small yield. Personnel levels are stable. And technical operations, maintenance, other running expenses and G and A are largely independent of production volumes. In other words, with all 12 tanks in use, incremental output adds minimal additional cost, creating significant operating leverage as volumes grow.

The more we produce, the lower cost per kilo we have, pretty obvious. So for salmon evolution, driving down farming costs is all about making continuous improvements that steadily increase production and harvest volumes. And when Phase two is online and volumes double, we also unlock significant economies of scale by leveraging the operation we already have. The same factors impacting the farming segment, weak salmon prices and temporary higher farming costs also flowed through to overall group results. Outside farming, the group includes the other segment, which are essentially headquarter and expansion costs.

Operating expenses in this segment were slightly higher than preceding periods. I would like to emphasize that cash burn on growth projects, both domestic and international, remains very limited as our core focus is on maximizing the performance of existing operations and delivering Phase two on time and budget. Again, results in the second quarter and the 2025 are not something we are satisfied with. But as the salmon price recovers and volumes grows, so will profitability. Then a quick look at the balance sheet and cash flow.

As Torren Hakon highlighted, the Phase two expansion is on plan and budget. Investments through Q2 were funded with own cash and first drawdown on the construction facilities was completed early July as planned. In the quarter, we also strengthened our financial flexibility with new loan facilities totaling $250,000,000, of which NOK 150,000,000 is earmarked for the planned pre grow out department at Indra Hari. None of this were drawn at the end of the quarter. Cash flow from operations in the quarter were impacted by the combination of weaker market prices and temporary higher than normal farming costs, as mentioned earlier.

Cash flow related to investments primarily relates to the Phase two expansion. And cash flow from financing is related to working capital financing and interest expenses. As mentioned, Phase two is on track. And as Trondhakorn said, testing and commissioning of Phase two will commence in just a few months. During the quarter, we invested approximately $280,000,000 in the project, bringing accumulated investments up to a little bit more than NOK900 million.

As mentioned, the first drawdown on the construction facilities was completed in July. Building activity and capital expenditure are expected to peak during the 2025. And to state the obvious, this project is a game changer for Tamil Evolution and it is only seven months until we stop the first smolt and start doubling production at Indra Hore. As I also mentioned earlier, we took proactive steps to further strengthen our financial flexibility during the quarter in light of the softer than expected salmon market the last twelve months by entering into a new loan facility up to NOK $250,000,000 with the DNB and Nordea. Of this, as mentioned, million is earmarked for the planned pre rollout department at Indra Hare.

The facility is on customary market terms with a twelve month tenure and option to extend for an additional six months subject to lender consent. Additionally, we also increased the overdraft facility from NOK 150,000,000 to NOK 200,000,000, providing additional flexibility. Tron Hakol?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Yes. Thank you, Drun. So clearly, the salmon market has been much weaker than expected this year, and this is due to an unprecedented increase in volumes. But looking into 2026, the outlook is much better. And as we turn the page on 2025, we expect supply growth to come significantly down, which again would result in stronger prices.

Here, we have borrowed some material from DNB Carnegie. And as you can see, they are expecting minus 7% supply growth from Norway next year and minus 1% globally. So and I think also the positive thing with the salmon market is that volume builds markets. So when supply eventually come down again, which it will, prices could also easily surprise on the upside. And we are therefore positioning ourselves for a market recovery next year.

And with Phase two then also up and running, we are in a very good position to capitalize on this. So to sum up, we have a proven platform, and we know that what we are doing is working, and we’ve been able to maintain stable operations over time. For now, it’s all about maximizing utilization of Phase one, which will further improve unit economics. Also, the heavy lifting is done as we are now soon already halfway in our project at Indraharri with an 18,000 tonnes operation well in sight, where we also get the scale needed to really see attractive economics and cash flow on back of an expected market recovery next year. And this, again, puts us in a very good position to continue to lead the development of the salmon farm land based salmon farming industry.

Thank you. I think we will then open up for questions. Maybe start here in the audience and then move over to questions submitted via the webcast.

Sedi Malal, Analyst, Nordea: Sedi Malal, Nordea. Can you say something about what kind of harvest weights we should expect in Q3 and also in H2 this year?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: I think what we can say is that you had 2.9 kilo Gattad in Q2, and we expect those to increase in Q3. I don’t want to give like an exact figure, but we given that we have now sort of pushed through with the normalization of our biomass composition, And we have a substantially different composition than we had both going into 2025 and also end of Q1. You should see a material increase from Q3 onwards.

Christian Odd, Analyst, Arctic Securities: Christian Odd, Bee, Arctic Securities. Can you give a range for how much cost per kilo will drop in Q3 versus Q2 now in your farming segment?

Trun Badsat Weibust, CFO, Salmon Evolution: We have not issued any specific guiding on costs. What I can say is what I have already said. We are not satisfied with the second quarter and the 2025. Smoke yield was too low and the feed conversion on the groups we harvested were too high impacting costs. I think towards the 2024 and the start of 2025 is kind of a good reference point going forward.

But again, we have not issued any specific guiding on costs apart from saying the obvious that costs will go down. The second quarter is not representative for the operation we the cost structure of the operation we have at Endrahor.

Christian Odd, Analyst, Arctic Securities: And based on one of your slides where you showed the biomass composition, it looks like you have quite a lot of volumes ready for harvest in July. Is that so? Will you be quite like 1,000 tonnes, roughly speaking, harvested in July at fairly low prices?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: It was not 1,000 tonnes in full, but had a decent volume in July. But it’s lower than 1,000 tonnes.

: Alex Achner, DNB Carnegie. So could you explain the volume split in the second half of the year? How much in Q3 and Q4? And also the volumes pushed into 2026, is that will those 500 tonnes come in Q1?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Yes. I think we are I would say, in general, what we are targeting is to harvest only the growth. So assuming that you have sort of fairly stable growth or hopefully slightly increasing quarter by quarter, that should be a good reflection of the harvest volumes. And then obviously, there are timing effects if it’s sort of in this quarter and that quarter. But so I think we’ll leave it at that as to the split between Q3 and Q4.

As to the volumes pushed into 2026, that will then come in Q1. So we have the way it looks now, we have quite a lot of volumes in the beginning of the year next year. So that’s where raw volumes are originally intended for late twenty twenty five.

: Thanks. And in terms of the nonrecurring costs in Q2, that was specifically because of higher feed costs due to bad economic feed conversion ratio. Was that the explanation for the nonrecurring?

Trun Badsat Weibust, CFO, Salmon Evolution: Two main effects. Small field and the one you mentioned, higher feed costs.

: Thank you. And in terms of construction for Phase two, any more blasting, anything that would disrupt Phase one production?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Everything complete, Ed. The Phase two and it’s worth emphasizing that this was sort of nothing with respect to the biology or anything impacting the fish. This was a precautionary pause that we had because when you are sort of laying the intake pipes, there’s a lot of rocks that needs to be sort of taken out. And to sort of mitigate any stress for the fish, we stopped feeding for quite a few days just to be on the safe side. That was what was impacting growth.

But that is all completed, so there are no more blasting activities or anything like that going forward.

: Thank you.

Trun Badsat Weibust, CFO, Salmon Evolution: Any more questions from the audience? Yes.

Kenyta Watkins, Analyst, Parekh, One Markets: Kenyta Watkins, Parekh, One Markets. You’re almost halfway through Phase two project now. How much of the contingencies and buffer have you used so far?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: I think what we as mentioned, we are within our budget. And obviously now, basically everything of the procurement is done. So we have good visibility on sort of the cost structure. I think as to risk, obviously, main risk here is delays, those kind of things, cooperation between different contractors and so forth. But the project is going very well, and we strongly believe that we have a very good visibility on the project and see that the sort of total project cost is sort of within what we are expecting.

Kenyta Watkins, Analyst, Parekh, One Markets: Another question. The the site is fully stocked. You have an optimal size distribution. Should we expect the harvest of around 6,500 to 7,000 tonnes next year based on that?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Yes. I think what we can say, if you look at our operations in if you look at 2025, so the underlying production this year, we are expecting so slightly below 6,000. But then we are also expecting more in the second half of the year. So if the run rate at the end of the year, it will be higher than sort of the full year production. So we have not sort of come out with our guidance for 2026.

But as I mentioned, 2025 is better than 2024, and we, for sure, expect 2026 to be better than 2025.

Kenyta Watkins, Analyst, Parekh, One Markets: Thank you.

Trun Badsat Weibust, CFO, Salmon Evolution: Any more questions from the audience? No? Okay. We have received some questions via the webcast. We can start with this one.

There is a lot of talk about U. S. Tariffs. How is your sales structured? And do you have a lot of sales to The U.

S?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Most of our volumes are going to Europe. So we are not seeing sort of a specific effect with respect to The U. S. Tariffs. I think another question is sort of the impact of those tariffs on sort of the salmon market as a whole, but I guess that’s sort of harder to quantify.

But no sort of specific impact for us and sort of very limited volumes going directly to The U. S. Market.

Trun Badsat Weibust, CFO, Salmon Evolution: Okay. Next question. What prevented you from using Fish Pool forwards to reduce price risk? And what financial hedge rate your targets do you have going forward? First and foremost, using Fish Pool to hedge the salmon price.

Currently for us, we have a little bit too fluctuating volumes. We need more regularity on harvest side. But I think looking into the future, this is quite unique opportunity for salmon evolution. We have a setup where we produce the same amount of fish every day. That also means that we will harvest the same amount of fish every day.

This means that we can use, for instance, our financial marketplace like Fishpul to hedge the price and to lower the variations. So this is definitely something we will look into for the future and something we consider quite interesting. Yes. Why are you fully exposed to the spot market? I think that has been answered quite

Trun Hakon Skeppataschen, CEO, Salmon Evolution: clear. As Trun said, we are it’s when you don’t have regularity on harvest, it’s hard to sort of hedge the volumes. When you are doing physical contracts, you need to sort of tell the customer when you are going to deliver fish, and they want fish ideally every week. And in the same way for the doing hedging financially, you want to have a certain degree of regularity. But as Trond said, that is coming now.

And clearly, in the same way as we hedge other components in our P and L, we would definitely like to also hedge the revenue side so that we can maintain stability and to a certain degree also lock in cash flow.

Trun Badsat Weibust, CFO, Salmon Evolution: All right. And then the two final questions. The announced partnership with Lufthoton Productara Nordgasgruppen earlier in 2025, have you gotten any feedback from the consumers so far? And what do you expect of the partnership going forward?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Yes. I think this is sort of one very good example of sort of what is possible. The market reception has been good. And we have also not spent a lot of money on marketing and so forth. But the product is listed and will be will continue to be listed, which I think is a good indication that the market reception has been good.

So obviously, now going forward and also with more and more volume and also more regularity, I think you will see more things like this over the coming period. So definitely something we are very happy about doing.

Trun Badsat Weibust, CFO, Salmon Evolution: And then the final question. You have previously mentioned Norway as a good location for further growth. Do you have any update on that?

Trun Hakon Skeppataschen, CEO, Salmon Evolution: Yes. I think what we definitely see Norway as very interesting. And I think what we have really seen over the last years is that what we have there with all the infrastructure, the value chain that gives us a huge advantage. We obviously have, as I mentioned, growth ambitions well beyond Indra Hari. But at the moment, focus is on what we have.

We need to get out the full potential of Phase one. And we also have a large construction project ongoing that we need to manage in a good manner. And but then we have actually an 18,000 tonnes operation and also a very good platform for further growth. So at the moment, primary focus is on what we have. But we are obviously also looking into opportunities to grow, but that will sort of be a little bit down the road.

Trun Badsat Weibust, CFO, Salmon Evolution: All right. That concludes things for today. Thank you for coming, and see you again in November. Thank you.

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