Salmon Evolution: marked change from just a few months ago

The company's turnover ended at NOK 86.5 million (NOK 51.1 million in Q3 2024) after harvesting 1,387 gutted weight tonnes (Q3 2024: 680 tonnes), with a preponderance of harvesting early in the period.

"The result was affected by weak salmon prices and temporary effects on operating costs, with an operating result (EBITDA) from farming of NOK -30.6 million and group EBITDA of NOK -40.5 million," the company reported.

Phase 2 on schedule

The company reports that the Phase 2 development is on schedule, with testing and commissioning in less than 30 days. The first smolt release is planned for the first quarter of 2026.

"This is a complete game-changer moment, and will give us a capacity of 18,000 tonnes, and I am more convinced than ever that Salmon Evolution will create significant value for our stakeholders and continue to drive the industry forward," said chief executive Trond Håkon Schaug-Pettersen.

He further reported that there is great interest from European processing companies in entering into contracts covering the first half of 2026.

"This is a marked change from just a few months ago, and a clear signal that the market is expected to be tight next year," said Schaug-Pettersen.

Harvest weight up 20% from previous quarter

The average weight of the 1,387 tonnes harvested in the quarter was 3.5 kg (head on gutted), an increase from 2.9 kg (20%) from Q2 to Q3.

The company also reports that it had approximately 8% deviations in harvest during the quarter due to temporarily higher than expected feed conversion ratio (FCR), negatively affecting operating costs by approximately NOK 6 per kilo in Q3. The company has now reviewed and adjusted its operating routines.

"It is a priority to continue to increase harvest weights in the coming periods," wrote Salmon Evolution.

At the end of Q3 2025, the company had a standing biomass of 3,009 tonnes live weight (LW), which is the highest level ever for the company.

The harvest forecast is 7,000 gwt for 2026, up around 50% compared to the expected volume in 2025.

The average realised price for harvested fish was about NOK 61 per kilogram.

"The quarter was characterised by high price volatility, but the company continues to outperform market reference prices," it reported.

Salmon prices rose throughout September, and futures prices rose significantly throughout the quarter.

Mortality

The company wrrote that operational stability at its facility at Indre Harøy remained high. So far this year, the facility has had an annual mortality rate of approximately 3%, in line with the long-term goal of 3–5%.

"This shows that Salmon Evolution has made significant strides during 2025, and underlines that the corrective measures implemented at the smolt facility at Dale to improve smolt quality have been effective. The latest smolt deliveries have exceeded target stocking weights and contributed to continued good growth at Indre Harøy," the report stated.

All smolt deliveries in 2025 have been above target release weight, and according to the company, the groups have performed well after transfer to Indre Harøy.

"During the quarter, Dale completed one smolt delivery, and this group has adapted well after being released into the grow-out facility," the company reported.

Harvest forecast

The 2025 harvest forecast has been reduced from approximately 5,000 to 4,600 tonnes HOG. According to the company, this is partly due to the aforementioned deviations in harvest, as well as a strategic prioritisation of 2026 in anticipation of a tight salmon market.

Further production growth in Phase 1, combined with the ramp-up of Phase 2, will provide Salmon Evolution with a significant increase in production capacity through 2026. However, the effect of the Phase 2 ramp-up on harvest volumes in 2026 is limited. For 2026, a harvest volume of around 7,000 tonnes HOG is expected.

Indre Harøy phase 2

Phase 2 – including the pre-growout tanks – is expected to add 10,100 tonnes, increasing the company's annual harvest capacity from 7,900 tonnes to approximately 18,000 tonnes of HOG.

"An additional 2,200 tonnes of HOG beyond the original plan of 7,900 tonnes is achieved through the use of four pre-growout tanks, providing a highly capital-efficient way to increase production by utilising existing infrastructure," the company explained.

In the new programme, the stocking weight in the grow-out section is increased from about 130 grams to 400 grams, while the targeted harvest weight is reduced to around 5.2 kg live weight (LW).

"Overall, this shortens the production cycle from approximately 11 months to 8–9 months, and makes it possible to increase the number of smolt releases from 6 to 8 per year per phase – which improves the utilisation of the grow-out facility," wrote the company.

The Phase 2 project is divided between Artec Aqua, which is responsible for process design, construction and commissioning, and HENT, which is responsible for construction engineering and structural works, in addition to the company's own deliveries.

The project builds on the experience and expertise from phase 1 and has a total estimated investment cost of up to NOK 2.5 billion (£189 million), including reserves, buffer capital and investments in the pre-growout basins.

The installation of all growth tanks and building shells for the technical buildings has been completed. In addition, the water intake infrastructure is nearing completion. According to the company, installation of process equipment is progressing according to schedule.

At the end of the third quarter of 2025, accumulated investments in the project amounted to NOK 1.255 billion, of which NOK 323 million was invested during the quarter.

Salmon Evolution has recently signed a long-term agreement for the supply of smolt with an external supplier.

Together with its own smolt production at Dale, the company's smolt needs for both phases 1 and 2 are fully covered through this agreement. In parallel, Salmon Evolution is developing a plan to cover future smolt needs, including for phase 3.