Andfjord Salmon says growth gamble has paid off

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Andfjord Salmon’s land-based farm development in Norway’s Arctic region is on track, the company says. In its report for the fourth quarter of 2020, Andfjord said its decision to speed up construction is playing off.
Andfjord is building a land-based salmon farm at Kvalnes, on the island of Andøya in the Vesterålen archipelago. It has a licence to produce 12,600 tonnes and rights to expand to an additional 77,400 tonnes.
In Q4 2020, Andfjord Salmon made the decision to go from a sequential development at Kvalnes to a parallel development of the full Kvalnes area. The main purpose, the company said, was to fast-track the development of the production capacity at Kvalnes from 1,260 tonnes (HOG) to 12,600 tonnes, while at the same time reducing overall project risk and biological risk for the start pool.
The company has now announced that it has successfully installed the two most time-critical and weather-dependent installations: the water inlet and outlet pipelines for the first pool. These, it said, are the most central building-blocks of its flow-through system and they are now connected to the surrounding ocean at Andøya.
Martin Rasmussen, Chief Executive Officer of Andfjord Salmon, said: “The decision we made in December to fast-track the development of the full Kvalnes area was smart as it reduces both overall project execution risk for the area development and biological risk for the start pool. This year’s successful hook-up of the first pool has further de-risked the entire project. We are pleased with the progress we are making.”
He added: “Utilising a continuous stream of fresh seawater from the surrounding Andfjorden is a key element of creating optimal living conditions for our salmon. We are on track to build the world’s most fish friendly and sustainable aquaculture facility of its kind.”
The company is now finalising electrical and automation installations, as well as installation of less time-critical pipeline connections, before the first pool is ready for water testing.
Meanwhile Andfjord has announced the appointment of Roger Brynjulf Mosand, CEO of CEO of Nordlaks Produkter AS – the processing division of salmon farmer Nordlaks – as Chairman. Mosand takes over from Andfjord’s founding Chairman, Roy Bernt Pettersen, who has stepped down.
Pettersen said: “As the largest shareholder in Andfjord Salmon, I believe both the board of directors and management of the company will benefit from a chairperson with extensive experience from production and processing of salmon. I am pleased that the nomination committee has found a candidate that possesses such experience from the business phase Andfjord Salmon is about to enter into.”
Andfjord is not yet generating steady commercial revenue, and it reported an operating loss of NOK 7.1m in the fourth quarter 2020 compared to an operating loss of NOK 2.9m in the corresponding quarter in 2019.
The company conducted a successful private placement last year, raising NOK 88.2m to fast-track blasting and excavation work related to the expansion at Kvalnes. At year-end 2020, Andfjord held cash or cash equivalents of NOK 148.8m.

Roger Brynjulf Mosand

 

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