In This Article:
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Group EBITDA: Minus NOK 7.3 million.
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Farming Segment EBITDA: Positive NOK 2.2 million or NOK 3.3 per kilo.
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Revenue: Approximately NOK 51 million.
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Harvest Volume: 680 tons in Q3; full-year guidance remains at 5,000 tons.
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Biomass: Close to all-time high levels of about 2,600 tons.
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Cash Flow: Generated NOK 6.6 million in operational cash flow.
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Available Liquidity: NOK 866 million at the end of Q3.
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Phase 2 Investment: Approximately NOK 130 million in Q3; total investment close to NOK 250 million.
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Superior Grade Share: Record high 98% in Q3.
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Mortality Rate: Accumulated mortality of 3% for the last batch.
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Feed Conversion Ratio (FCR): 1.00 for the last batch.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Salmon Evolution ASA (STU:60E) has demonstrated strong operational stability with excellent biological KPIs, including a superior grade share above 96% and low mortality rates.
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The company is progressing well with Phase 2 construction, which is expected to significantly increase production capacity and unlock further growth potential.
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Salmon Evolution ASA maintains a strong financial position, being fully funded for Phase 2, which will increase production to 18,000 tons.
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The company has achieved a high all-in price realization of NOK72 per kilo, despite low stocking rates and seasonal price fluctuations.
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The company is implementing over 50 specific initiatives to optimize and fine-tune operations, aiming to exceed current targets and leverage scaling effects from Phase 2.
Negative Points
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The group EBITDA for the third quarter was negative at NOK7.3 million, reflecting temporary low harvest volumes and seasonal price impacts.
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Biomass production has been impacted by small quality issues earlier in the year, affecting harvest weights and volumes in Q1 2025.
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The company faces challenges in maintaining flexibility in harvest timing due to industrial production constraints and capacity limitations.
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Salmon Evolution ASA has not yet entered into price hedging for salmon, which could expose the company to price volatility.
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The company is still in the planning phase for its North American expansion, with no concrete updates on project timelines or partners.
Q & A Highlights
Q: Are you tracking on 4 kilos harvest weights in Q4, or do you expect it to be higher by the end of Q4? A: We are approximately at 4 kilos for the fish harvested so far. We have quite some volumes left for Q4 and are trying to hold back as much as possible to maximize price realization.