Salmon Evolution reports revenue surge

Construction at Salmon Evolution's Indre Harøy site

Land-based fish farming company Salmon Evolution has announced much improved 2021 third quarter results.

Salmon Evolution, which is involved in a major RAS project in South Korea, succeeded in halving losses and increasing revenues several time.

Operating revenue increased from NOK 700,000 (£58,490) last year to NOK 12.2m (£1.02m) this time and losses were cut from NOK 9.1m (£760,800) to NOK 4.7m (£392,948) this quarter.

Based on Norway’s west coast, Salmon Evolution was set up in 2017 to pursue RAS (recirculating aquaculture systems) farming on land. In June this year it signed a major deal with Dongwon Industries to help build a 20,000 tonne K Smart farm in in South Korea.

CEO Håkon André Berg, said: The company is now putting a lot of focus and attention into planning for the start of production. During Q3 2021 several new employees were enrolled. The company will continue to retain highly qualified operating personnel also in Q4, ensuring a well-functioning operating organization in place well ahead of March 2022.

“In South Korea, the initial feasibility study was delivered in October and K Smart is now in the process of tuning the facility layout and production plans.”

In October this year Salmon Evolution entered a strategic partnership with feed producer Cargill. Cargill has committed to allocate significant resources and R&D capacity, with the purpose of developing sustainable feed solutions tailored to Salmon Evolution’s operational targets. As part of the agreement, Cargill invested US $5m (£3.72m) in Salmon Evolution through a private placement.

Third quarter highlights included:

  • Construction of the Norwegian Phase 1 at Indre Harøy is progressing according to plan – on time and on budget.
  • Preparations for the first smolt release at Indre Harøy in Q1 2022;
  • Acquisition of smolt company Kraft Laks AS, securing in-house smolt for Indre Harøy Phase 1. The subsidiary recorded good performance.
  • Listing of the company’s shares at the main list on Oslo Stock Exchange.
  • The company has available liquidity of NOK 1,198m (£100.12m) as at 30 September 2021, including committed undrawn credit facilities and adjusted for Cargill’s US $5m private placement.