Norwegian land-based salmon farmer Salmon Evolution posted its best-ever quarterly harvest in Q2 2024, helping it secure year-over-year gains in operating revenue, group EBITDA, and cash flow.
Thanks to its 1,581-metric-ton (MT) Q2 2024 harvest of head-on-gutted (HOG) fish, as well as strong prices, Salmon Evolution ended the second quarter of this year with operating revenues of NOK 170.4 million (USD 16.1 million, EUR 14.5 million), an 180 percent increase over the NOK 60.7 million (USD 5.7 million, EUR 5.2 million) it posted in the same period of 2023. That big increase in revenue corresponded to better earnings, leading the company to post a group EBITDA of NOK 45.4 million (USD 4.3 million, EUR 3.9 million), up from an EBITDA loss of NOK 20.8 million (USD 2 million, EUR 1.8 million).
Positive cash flow from operations also improved, reaching NOK 37.5 million (USD 3.6 million, EUR 3.2 million), up from a loss of NOK 25.1 million (USD 2.4 million, EUR 2.1 million).
Sharing the results with the Oslo Børs, Salmon Evolution CEO Trond Håkon Schaug-Pettersen noted that in Q2, the company benefited from a price realization of around NOK 106 (USD 10.08, EUR 9.06) per kilogram thanks to an “industry-leading” superior grade share of 96 percent. The average harvest weight in the quarter was 3.6 kilograms, with “opportunistic harvesting” allowing the firm to take advantage of the strong prices.
Salmon Evolution had a busy Q2 outside of its harvest, too.
Schaug-Pettersen confirmed the company completed the financing package for Phase 2 of its Norway expansion plans in Indre Harøy, with DNB Bank and Nordea Bank approving credit increases of NOK 675 million (USD 64.2 million, EUR 57.7 million). Phase 2 of its Norwegian expansion is anticipated to add 10,100 MT HOG of capacity to the firm’s Indre Harøy operations.
Additionally, Salmon Evolution secured a successfully completed private placement in June that raised gross proceeds of NOK 365 million (USD 34.7 million, EUR 31.2 million).
Through the first half of 2024, the company had NOK 270.7 million (USD 25.5 million, EUR 23 million) in revenue and a farming EBITDA of 94.9 million (USD 9 million, EUR 8.1 million), compared to NOK 63.7 million (USD 6 million, EUR 5.4 million) in revenue and a loss of NOK 15.1 million (USD 1.4 million, EUR 1.3 million) in H1 2023.
"In the first half of 2024 Salmon Evolution had close to 300 million in revenues and a farming EBITDA of almost 100 million, continuing to demonstrate that Salmon Evolution has established a unique, efficient and profitable growth platform," Schaug-Pettersen said. "We are also very pleased with the phase 2 financing package completed during the quarter and look forward to continue our growth journey at Indre Harøy"
The producer harvested 2,481 MT HOG in H1 2024, compared to 585 MT HOG in the same period last year.
Its harvest in the third quarter of the year has been revised to the range of 1,200 MT HOG to 1,300 MT HOG, with some volumes moved into Q4 to achieve greater harvest weights. Consequently, the harvest in the second half of this year is expected to be in the range of 2,400 MT HOG to 2,600 MT HOG.
For the full year 2024, Salmon Evolution expects to harvest around 5,000 MT HOG.
