Q2 2026 Salmon Evolution ASA Earnings Call Transcript
Key Points
- Phase 2 is now in operation and ramping up according to plan, with the third smolt release completed in July and four out of 12 grower tanks taken over.
- Year-to-date harvest volumes are up 50%, and farming EBITDA improved from minus NOK8 million to plus NOK15 million despite a challenging salmon market.
- Biological trends are positive, with net biomass growth increasing to 1,706 tonnes in Q2 from 1,357 tonnes in Q1, and improved water quality translating into better growth.
- The economic feed conversion ratio improved by 5-6%, with the latest harvested group crossing the 12-month target of 1.1, providing a competitive advantage against feed cost inflation.
- The company is confident in achieving its mid-2027 run rate production target of 14,600 tonnes, with a clear plan for fixed cost dilution as volumes scale.
- Second-quarter revenues were weak at NOK67 million, with farming EBITDA of minus NOK3 million and group EBITDA of minus NOK11 million due to low salmon prices.
- 2026 harvest guidance was reduced to approximately 6,000 tonnes from 7,000 tonnes due to lower-than-anticipated biomass production in the first part of the year.
- Production in May and early June was impacted by sub-optimal fish logistics and a longer-than-normal adaptation period for a new smolt group in Phase 1.
- The pre-grower tanks for Phase 2, requiring an investment of around NOK400 million, have not yet received a final investment decision, potentially delaying full ramp-up to 18,000 tonnes.
- The salmon market has been challenging for some time, with high supply growth pressuring prices, and the company expects the market to only improve in 2027.
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Okay. Good morning, everyone. Thank you for joining Salmon Evolution's presentation for the second quarter. We are currently at a true inflection point where we are now transitioning from a period dominated by construction and investment towards now scale up and ultimately, cash flow generation with Phase 2 at Indre Harøy now in operation. And this is something we look forward to for a long time. And as I've said many times before, this will be a game changer for the company.
In land-based salmon farming, you need scale. And by the end of this year, scale is exactly what we will have. Also, while the salmon market has been challenging for some time and impacting our financial results, we are now seeing a more positive market outlook emerging, which is also very encouraging. Coupled with a substantial increase in production over the coming year, this is arguably the most interesting period in Salmon Evolution's history.
So my name is Trond HÃ¥kon Schaug-Pettersen. I'm the CEO
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