This article first appeared on GuruFocus .
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Revenue:Approximately NOK87 million in the third quarter.
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Harvest Volumes:Close to 1,400 tonnes in the third quarter.
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Farming EBITDA:Minus NOK30 million.
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Group EBITDA:Minus NOK40 million.
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All-in Price Realization:NOK61 per kilo.
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Net Biomass Growth:Approximately 1,800 tonnes live weight, up 6% from the second quarter.
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Mortality Rate:3%, significantly below industry average.
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Superior Grade Share:Around 95%.
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Cash and Cash Equivalents:NOK156 million at the end of the quarter.
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Expected Harvest Volumes for 2026:Approximately 7,000 tonnes, up 50% from 2025.
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Phase 2 Expansion:On track for first smolt release in late Q1 2026, aiming for 18,000 tonnes run rate by the end of 2027.
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Release Date: November 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Phase 2 expansion is progressing on time and on budget, with the first smolt release scheduled for late Q1 2026.
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Stable operations with low mortality rates and high superior grade share, outperforming industry averages.
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Record high production in Q3 with harvest volumes close to 1,400 tonnes, generating NOK87 million in revenues.
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Expecting a significant increase in harvest volumes by 50% in 2026, reaching approximately 7,000 tonnes.
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Strong market positioning with partnerships like Milarex in Italy and premium brands in Norway and Sweden, enhancing market reach and sustainability credentials.
Negative Points
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Farming EBITDA at minus NOK30 million and group EBITDA at minus NOK40 million due to weak salmon prices and temporary farming cost effects.
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Full exposure to spot market led to a 15% decrease in price realization compared to the previous year.
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Temporary higher farming costs due to harvest deviations, impacting feed costs and fixed cost allocation.
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Elevated feed conversion ratio resulted in a NOK3 per kilo negative effect on costs.
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Overall financial performance in Q3 was unsatisfactory, with operating losses driven by weak salmon prices and higher farming costs.
Q & A Highlights
Q: What kind of debt levels are you comfortable running, and how does this compare to traditional farmers? A: Currently, we have a loan to cost of approximately 50%, which we are comfortable with. Our stable operations and different asset types allow for potentially higher leverage. With Phase 2, we can hedge salmon prices and create more stable cash flow, which may support higher debt levels. (Trond Vadset Veibust, CFO; Trond Schaug-Pettersen, CEO)
Q: Based on current smolt stocking, how much Phase 2 harvest do you expect in 2027? A: We are ramping up in 2026, gradually taking more tanks into operation. By the summer of 2027, we expect to be at full run rate. (Trond Schaug-Pettersen, CEO)
Q: How are you planning to finance Phase 3? A: The focus is on delivering Phase 2 first. Phase 3 financing will depend on the pace we choose. With Phase 2's cash flow capacity, we have various options for financing Phase 3. (Trond Schaug-Pettersen, CEO)
Q: How do you view your expansion strategy? A: Our core focus is maximizing Phase 1 and delivering Phase 2. Phase 3 is a priority, but we also see opportunities in Norway and overseas. A scalable and profitable platform is essential for pursuing these opportunities. (Trond Schaug-Pettersen, CEO)
Q: What are your expectations for salmon prices in 2026? A: We expect a strong recovery in salmon prices, driven by limited supply growth and strong demand. (Trond Vadset Veibust, CFO)
Q: How much maintenance CapEx do you expect for Phase 1 in 2026? A: The facility is still relatively new, so maintenance CapEx for Phase 1 will be limited in 2026. (Trond Vadset Veibust, CFO)
Q: What caused the 2% drop in superior grade share? A: There are natural fluctuations from quarter to quarter. We consistently maintain a high superior grade share, so this is not a significant concern. (Trond Schaug-Pettersen, CEO)
Q: How does your focus on fish welfare and sustainable production give you an edge in the market? A: Being at the forefront of fish health and welfare is crucial for sustainable production. This focus will become increasingly important and is a clear strength for us moving forward. (Trond Schaug-Pettersen, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
