Weak salmon prices force Salmon Evolution into new credit facility

Salmon Evolution said the purpose of the new facility is to strengthen the company’s financial flexibility in light of a weaker than expected salmon market over the past 12 months.

Fresh salmon prices in Norway have consistently been at their lowest levels for almost two years although there are some signs of a revival.

The new facility is based on customary market terms and has a tenor of 12 months with an option to extend another six months, subject to lenders’ consent.

The new loan facility has obtained relevant credit committee approvals and is subject to customary closing conditions, including final documentation.

Additionally, the Company has entered into an agreement to increase its current overdraft facility with Nordea Bank Abp, Norwegian branch, from NOK 150m to NOK 200m (£10m-£14m).

A portion of the new facility is dedicated to the planned pre-grow-out department at Indre Harøy.

Salmon Evolution said: “As reported in the Q1 2025 presentation the Indre Harøy phase 2 construction project is progressing according to plan.”

Salmon Evolution describes itself as the global leader within land-based salmon farming, pioneering the hybrid flow-through system (HFS). A month ago it announced a new production record with a net biomass growth of 1,624 tonnes during the first three months of this year. It also recorded revenues of NOK 49.7m (£3.6m) after harvesting 581 tonnes (HOG – head on, gutted).