Andfjord Salmon : Kvalnes construction continues at full pace | Third quarter ...

HARBOUR AND WATERWAYS

In the initial construction phase, Andfjord Salmon also develops major shared infrastructure, such as waterways and harbour area, that will support future production of 40,000 tonnes at Kvalnes.

Andfjord Salmon has adopted a mass balance approach for the current build-out, whereby excavated masses from pool pits and waterways are used in the development of a new harbour at Kvalnes. This considerably reduces operating costs and CO2 emissions associated with the build-out.

At the designated harbour area at Kvalnes, the excavated masses will be used to develop a quay and a breakwater. As of today, this workstream stands at 20 percent completion, driven by good progress from pool pit excavation.

The inlet and outlet waterways workstream has reached 5 percent completion, up from 1 percent at the end of August.

"Progress ahead of schedule in the early stages provides added flexibility for the subsequent workstreams. It de-risks the build-out and reduces the probability of unwanted cost overruns. The construction performance so far is highly encouraging," says Martin Rasmussen.

THIRD QUARTER 2023 FINANCIAL RESULTS

Early in the third quarter, Andfjord Salmon completed its inaugural harvest of salmon with strong results, including an industry-leading survival rate of 97.5% and superior share of 91.1%. The total biomass of Atlantic salmon reached 646 tonnes, equivalent to approximately 530 tonnes HOG.

Following the first harvest and subsequent sale of the fish, Andfjord Salmon delivered operating income of NOK 27.7 million in the third quarter 2023, up from zero in the same quarter last year. The company had an operating loss of NOK 28.2 million in the third quarter, versus a loss of NOK 17.6 million in the corresponding period in 2022. In total, Andfjord Salmon's first harvest generated revenue of NOK 37.3 million.