Q2 2026 Nordic Aqua Partners AS Earnings Call

August 26, 2026

Speaker #1: It's Andreas, our managing director, and from Oslo is Tom, CFO, also joining. If we go to the agenda today, then we will start with some highlights: our Andreas will come in and present the market.

Speaker #1: I will come back with operations and project, and then our CFO Tom will come in with financials, and I will sum up in the end.

Speaker #1: But remember also, when we have this session, that it is a possibility to come in and ask some questions in writing during the presentation.

Speaker #1: And then we will answer them in the end of the presentation. But first, starting with highlights: if we look at how things are going, we are quite satisfied.

Speaker #1: I think we can say, with many things. If we look at the production, we are— we could say— at the goal where we wanted to be when we have stage 1 and stage 2 together.

Speaker #1: Aiming for 8,000 tons harvest and then we have just under 2,300 tons in production for the quarter, and if we just continue what we are producing right now, we will be at the level where we should be.

Speaker #1: Tom, biomass is quite high, and the cost is coming down. The harvest has been ramped up during Q2, and we will further ramp up during Q3 and further going on.

Ragnar Joensen: We have just under 2,300 tons in production for the quarter. If we just continue what we are producing right now, we will be at the level where we should be. Total biomass is quite high, and the cost is coming down. The harvest has been ramped up during Q2, and we will further ramp up during Q3 and further going on. Sales price is EUR 7, and especially a strong achievement for the 5-plus area, where we are just under EUR 8 per kilo. Farming costs during the quarter has been taken out with just over EUR 6. Operating EBIT is just under break even. In phase 2, we have completed, we are producing at full now, just some minor issues still ongoing. We have also started to design the phase 3.

Speaker #1: And we have just under 2,300 tons in production for the quarter, and if we just continue what we are producing right now, we will be at the level where we should be.

Speaker #1: Sales price is 7 euro, and especially as a strong achievement for the 5 Plus area. We are just under 8 euro per kilo. Farming cost during the quarter has been taken out with 6, just over 6 euro.

Speaker #1: As mentioned, biomass is quite high and the cost is coming down. The harvest has been ramped up during Q2, and we will further ramp up during Q3 and beyond.

Speaker #1: Sales price is €7, and especially as a strong achievement for the 5+ area, where we are just under €8 per kilo.

Speaker #1: And operating EBIT is just under regular. So in stage 2, we have completed— we are producing at full now— just some minor issues still ongoing.

Speaker #1: Farming cost during the quarter has been taken out with just over €6. And operating EBIT is just under regular. So in phase 2, we have completed, we are producing at full now, just some minor issues still ongoing, and we have also started to design phase 3.

Speaker #1: And we have also started to design the stage 3. Our managing director in China will come just after me and explain more about the market, but we can still see that the market is just getting stronger and stronger.

Speaker #1: Here in China. So hereby I would just like to give the word to you, Andreas.

Speaker #1: Our Managing Director in China will come just after me and explain more about the market, but we can still see that the market is just getting stronger and stronger.

Ragnar Joensen: Our Managing Director in China will come just after me and explain more about the market, but we can still see that the market is just getting stronger and stronger here in China. Here, I would just like to give the word to you, Andreas.

Speaker #2: Here in China.

Speaker #1: So hereby, I'd just like to give the word to you, Andreas.

Speaker #2: And we've done some research on that, and we see that according to third-party Quantali, that is the first land-based salmon farmer that actually harvests more than 1,000 tons at an average rate.

Speaker #2: Thank you for that, Ragnar. Yes, we are pleased to announce the Q2 results when it comes to the market performance and the harvest. The volume in the Q2 quarter ended up at 1,362 tons, and we've done some research on that. We see that, according to third-party Quantali, this is the first land-based salmon farmer that has actually harvested more than 1,000 tons at an average rate.

Andreas Thorud: Thank you for that, Ragnar. Yes, we are pleased to announce the Q2 results when it comes to the market performance and the harvest. The volume in the Q2 quarter ended up at 1,362 tons. We have done some research on that, and we see that according to the third party, Kontali, that is the first land-based salmon farmer that actually harvests more than 1,000 tons at an average rate, about 4 kilo in a single quarter. That just underlines the trajectory we are in, which also Ragnar gave in his introduction. The actual numbers for the quarter was 4.4 kilo whole, which is a 5.3 kilo live weight, and we had a solid superior share of 96%. The average sale price achieved was around EUR 7, EUR 6.94 a kilo.

Speaker #2: About 4 kilo in a single quarter, and that just underlines the trajectory we are in, which also Ragnar gave in his introduction. So the actual numbers for the quarter were 4.4 kilo hogs, which is 5.3 kilo live weight, and we had a solid superior share of 96%.

Speaker #2: About 4 kilos in a single quarter, and that just underlines the trajectory we are on, which Ragnar also mentioned in his introduction. So, the actual numbers for the quarter were 4.4 kilo hogs, which is 5.3 kilos live weight, and we had a solid superior share of 96%.

Speaker #2: The average stage price achieved was around 7 euro, 6.94 a kilo. We were obviously somewhat impacted by the softening spot prices that we saw in this Q2, and which was also a trend through the first half year of this year, which was also somewhat below the initial forecast that we gave in late last year.

Speaker #2: The average sales price achieved was around €7, €6.94 per kilo. We were obviously somewhat impacted by the softening spot prices that we saw in this Q2, and which was also a trend through the first half of this year, which was also somewhat below the initial forecast that we gave in late last year.

Speaker #2: It's also worth noting that some of the harvest volumes were skewed towards the end of the quarter as we were ramping up. I think it's also good to highlight, and this is something we are tracking closely, is that for the 5 Plus superior grade we have, we are at a 21% price premium to the Sitagri export prices from Norway, and the prices for the quarter came in that 7.85 kilo euro per kilo.

Andreas Thorud: We were obviously somewhat impacted by the softening spot prices that we saw in this Q2, and which was also a trend through the H1 of this year, which was also somewhat below the initial forecast that we gave in late last year. It is also worth noting that some of the harvest volumes were skewed towards the end of the forecast with the ramping up. I think it is also good to highlight, and this is something we are tracking closely, is that for the 5-plus superior grade we have, we are at a 21% price premium to the Sitagri export prices from Norway. The prices for the quarter came in at EUR 7.85 per kilo. I think if you also look at the average harvest rates in general, we are tracking now closely what is the average harvest size from traditional salmon farming in Norway.

Speaker #2: It's also worth noting that some of the harvest volumes were skewed towards the end of the quarter as we were ramping up. I think it's also good to highlight, and this is something we are tracking closely, is that for the 5 Plus superior grade we have, we are at 21% price premium to the Sitagri export prices from Norway, and the prices for the quarter came in that 7.85 kilo euro per kilo.

Speaker #2: I think if you also look at the average harvest weights in general, we are tracking now closely what is the average harvest size from traditional salmon farming in Norway, and that is something which we think is important here in the local market to be able to make sure that we get sizes that are attractive for our price achievement.

Speaker #2: If we look on the actual size topping, this is a topic we talked about before, but we think it's worth mentioning that there is a price band in China.

Andreas Thorud: That is something which we think is important here in the local market, to make sure that we get sizes that are attractive for our price achievements. If we look on the actual size topic, this is a topic we talked about before, but we think it is worth mentioning that there is a price span in China. We know there is a preference for larger size fish. There are some local reasons for that in terms of taste and texture, yield, and also that there is a sashimi consumption. So there is a bigger sensitivity in terms of the pricing. I think it is important to note here that we are improving when it comes to the premium we get, especially now if we compare it to earlier quarter.

Speaker #2: We know there is a preference for larger size fish. There are some local reasons for that in terms of taste and texture, yield, and also that there is a sashimi consumption.

Speaker #2: If we look at the actual-size topping, this is a topic we've talked about before, but we think it's worth mentioning that there is a price band in China.

Speaker #2: We know there is a preference for larger-sized fish. There are some local reasons for that, in terms of taste and texture, yield, and also that there is sashimi consumption.

Speaker #2: If we see all our sales and we look at it towards the Sitagri index and we weight this and we do it week to week so we have an apples to apples comparison, we are at 8% above Sitagri, which was an improvement from last quarter and we see that being steady now in the market, being a player that is our customers getting used to, they like our stability, they like our product, we see that that is now gradually yielding results and it also gives them encouragement for the future and the further building of the market.

Speaker #2: So there is a bigger sensitivity in terms of the pricing, but I think it's important to note here that we are improving when it comes to the premium we get especially now if we compare it to earlier quarter, if we see all our sales and we look at it towards the Sitagri index and we weight this and we do it week to week so we have an apples to apples comparison, we are at 8% of all Sitagri, which was an improvement from last quarter and we see that being steady now in the market, being a player that is our customers getting used to, they like our stability, they like our product, we see that that is now gradually yielding results and it also gives them encouragement for the future and the further building of the market.

Andreas Thorud: If we see all our sales and we look at it towards a Sitagri index, and we weight this and we do it week to week so we have an apples to apple comparison. We are at 8% above Sitagri, which was an improvement from last quarter. We see that being steady now in the market, being a player that our customers getting used to. They like our stability. They like our product. We see that that is now gradually yielding results, and it also gives some encouragement for the future and the further building of the market. We also participated at various events.

Speaker #2: We also participated at various events throughout the year in Q2. We were at some customer tasting events where we also put our salmon Nordic or Atlantic, the brand, in the spotlight, and we also received some award during the quarter, which was from the Shanghai Climate Week, Lighthouse Outstanding Case Award for our sustainability efforts and also our green manufacturing when it comes to using solar panels.

Speaker #2: We also participate at various events throughout the year. In Q2, we were at some customer tasting events where we also put our salmon, Nordic Pure Atlantic—the brand—in the spotlight. We also received an award during the quarter, which was from the Shanghai Climate Week: the Lighthouse Outstanding Case Award for our sustainability efforts, and also for our green manufacturing when it comes to using solar panels.

Andreas Thorud: Throughout the year in Q2, we were at some customer tasting events where we also put our salmon, Nordic PureAtlantic, the brand, in the spotlight. We also received some award during the quarter, which was from the Shanghai Climate Week Climate Lighthouse Outstanding Case Award for our sustainability efforts and also our green manufacturing when it comes to using solar panels.

Speaker #2: The overall value proposition, and we talked about this many times, but it's still something we talk to the market about, we talk to the customers about, and we feel that the freshness we can supply to the market is a unique feature that is very much a key aspect of seafood in China, where fresh seafood is something that is related to quality and that we can do it here in the way we do it, locally produced, localized, Atlantic salmon, with the raw technology is a strong selling point.

Andreas Thorud: The overall value proposition, and we talked about this many times, but it still is something we talk to the market about, we talk to the customers about, and we feel that the freshness we can supply to the market is a unique feature that is very much a key aspect of seafood in China, where fresh seafood is something that is related to quality and that we can do it here in the way we do it, locally produced, localized Atlantic salmon with the RAS technology is a strong selling point. Furthermore, for safety, we have no antibiotics used in our facilities. We also do not use any type of medication, and there is no parasite risk and so on, which is also a resonance well with the local market.

Speaker #2: The overall value proposition, and we talked about this many times but it's still something we talk to the market about, we talk to the customers about, and we feel that the freshness we can supply to the market is a unique feature that is very much a key aspect of seafood in China where fresh seafood is something that is related to quality and that we can do it here in the way we do it, locally produced, localized, Atlantic salmon, with the raw technology is a strong selling point.

Speaker #2: Furthermore, for safety, we have no antibiotics use in our facilities. We also do not use any type of medication and there's no parasite risk and so on.

Speaker #2: Which is also resonates well with the local market. We also by being locally here, we take down the transport costs and also the transport carbon footprint, which has a sustainability aspect to it, and we are agile in terms of developing the market and looking to build more strategic partnerships when it comes to developing both the food service and the retail sector.

Speaker #2: Furthermore, for safety, we have no antibiotics use in our facilities. We also do not use any type of medication, and there's no parasite risk, and so on, which also resonates well with the local market.

Speaker #2: By being locally here, we also lower transport costs and reduce the transport carbon footprint, which has a sustainability aspect to it. In addition, we are agile in terms of developing the market and looking to build more strategic partnerships when it comes to developing both the food service and the retail sector.

Andreas Thorud: By being locally here, we take down the transport costs and also the transport carbon footprint, which has a sustainability aspect to it. We are agile in terms of developing the market, and we are looking to build more strategic partnerships when it comes to developing both the food service and the retail sector. For those of you who do not know China that well, we are very well located. It is near Shanghai, the Yangtze River Delta. It is in an affluent area of China where you have, in the radius of 5 hours, 500 million consumers that focus on health, that are increasing their salmon consumption, as we will see in a minute when it comes to how China is developing market-wise. It is also a good location to serve a wider population of China, more than 800 million within 12 hours.

Speaker #2: Next there. For those of you who don't know, China that well, we are very well located. It's near Shanghai, the Yangtze River Delta, it's in an affluent area of China.

Speaker #2: Where you have in the radius of five hours, 500 million consumers that focus on health, that are increasing their salmon consumption, as we will see in a minute when it comes to how China is developing market-wise, and it's also a good location to serve a wider population of China, more than 800 million between within 12 hours.

Speaker #1: Next there.

Speaker #2: For those of you who don't know, China that well, we are very well located. It's near Shanghai, the Yangtze River Delta, it's in an affluent area of China, where you have in the radius of five hours, 500 million consumers that focus on health, that are increasing their salmon consumption, as we will see in a minute when it comes to how China is developing market-wise, and it's also a good location to serve a wider population of China, more than 800 million between within 12 hours.

Speaker #2: So we think the location we are at at the moment has been a very good starting point when it comes to developing this local market.

Speaker #2: The actual development in Chinese market, and once we follow it, we'll see that it's been strong growth year on year, especially since 2024. So far for this 25% increase.

Speaker #2: So, we think the location we are at at the moment has been a very good starting point when it comes to developing this local market.

Andreas Thorud: We think the location we are at the moment, has been a very good starting point when it comes to developing this local market. The actual development in Chinese market, and the ones who follow it will see that it has been strong growth year-on-year, especially since 2024. So far, for this quarter, there was a year-on-year 25% increase. We had almost for the H1 touching close to 100,000 tonnes. The growth story of China continues and there are obviously some projections that have been made some years ago. In 2023, Alibaba predicted 210,000 tonnes in 2030. We think that will be exceeded, and not in 2030, but before that. There are also other forecasts made suggesting of 300,000 tonnes in year 2030. Who knows where it ends up? The key factor is that China is a growth story.

Speaker #2: We had almost for the first half year touching close to 100,000 tons. So it's the growth story of China continues, and there are some obviously some projections that have been made.

Speaker #2: The actual development in the Chinese market—once we follow it, we'll see that it's been strong growth year on year, especially since 2024. So far, for this quarter, there was a year-on-year 25% increase. We had almost, for the first half of the year, touched close to 100,000 tons.

Speaker #2: Some years ago, 2023, Alibaba predicted 210 tons, in 2030 we think that will be exceeded and not in 2030, but before that, but there's also other Pareto made than suggestion of 300,000 tons in year 2030.

Speaker #2: So, it's the growth story of China that continues, and there are obviously some projections that have been made. Some years ago, in 2023, Alibaba predicted 210,000 tons in 2030. We think that will be exceeded, and not in 2030, but before that. But there's also another—Pareto made suggestions of 300,000 tons in the year 2030.

Speaker #2: Who knows where it ends up? The key factor is that China is a growth story. It's going to continue to be a growth story, as the penetration of salmon continues with Chinese consumers, as well as higher frequency.

Speaker #2: So we see very positively on the market development in China. And it's also marketed many origins, and we know that from before. You have Norway as the clear leader, which has especially these two last years when you have lower than expected pricing.

Speaker #2: Who knows where it ends up. The key factor is that China is a growth story; it's going to continue to be a growth story, as the penetration of salmon continues with Chinese consumers, as well as higher frequency.

Andreas Thorud: It is going to continue to be a growth story as the penetration of salmon continues with Chinese consumers, as well as higher frequency. We see very positively on the market development in China. It is also a market with many origins, and we know that from before. You have Norway as the clear leader, which has, especially these two last years when you have lower than expected pricing, Norway has been able to capture a lot of market share also in China and has an impressive growth in China for the H1 of 33%. Pricing, a bit depressed from what they have been used to. That is reasons that are related to the supply situation from Norway. We think that the prices will, as some analysts also look at, will have a potential for improvement.

Speaker #2: So we see the market development in China very positively. And it's also a market with many origins, and we know from before, you have Norway as the clear leader, which has, especially these last two years, when you have lower than expected pricing, been able to capture a lot of market share—also in China—and has shown impressive growth in China for the first half of the year, at 53%.

Speaker #2: Norway has been able to capture a lot of market share also in China and has an impressive growth in China for the first half year of 53%.

Speaker #2: And pricing, a big depressed from what they've been used to. That is reasons that are related to the supply situation from Norway. But we think that the prices will, as some analysts also look at, will have a potential for improvement.

Speaker #2: And pricing, a bit depressed from what they've been used to, that is reasons that are related to the supply situation from Norway, but we think that the prices will, as some analysts also look at, have a potential for improvement. And historically, we've seen that it's more than 10 euro per kilo that's been a local pricing here, and that is something which obviously will further strengthen our business case by being here in China, which we think is being in the right market at the right time with the right product.

Speaker #2: And historically we've seen that it's more than 10 euro per kilo that's been a local pricing here. And that is something which obviously will further strengthen our business case by being here in China, which we think is being at the in the right market at the right time with the right product.

Speaker #2: Thank you.

Andreas Thorud: Historically, we have seen that it is more than EUR 10 per kilo that has been the local pricing here, and that is not something which obviously will further strengthen our business case by being here in China, which we think is being in the right market at the right time with the right product. Thank you.

Speaker #1: Thanks, Andreas. Continue to go into operational parameters. As I mentioned, to start with, I mean, the overall production is going very well. So the biomass production was just under 2,300 tons.

Speaker #2: Thank you.

Speaker #1: Especially in May and June, the production came really up to where we wanted to be month on month. We finished this facility in late February, and already in May after we come up to full production.

Speaker #1: Thanks, Andreas. We'll continue to go into operational parameters. As I mentioned to start with, the overall production is going very well. The biomass production was just under 2,300 tons.

Ragnar Joensen: Thank you, Andreas. Continuing to go into operational parameters, as I mentioned to start with, the overall production is going very well. The biomass production was just under 2,300 tonnes. Especially in May and June, the production came really up to where we wanted to be month-on-month. We finished this facility in late February, and already in May after, we come up to full production. We think that is a very good result to achieve. The total biomass, 5,600 tonnes. If you look at the cost, during the quarter, we have reduced that cost of EUR 4.7, while the average cost, because the cost before has been higher, is EUR 5.4. If we can continue with the cost that we have at the moment, it will gradually come further down.

Speaker #1: Especially in May and June, the production really came up to where we wanted it to be month on month. We finished this facility in late February, and already in May we came up to full production.

Speaker #1: So we think that is a very good results to achieve. So the total biomass, 5,600 tons. And if you look at the cost, I mean, during the quarter we have reduced that cost of 4.7, while the average cost, because the cost before has been higher, is 5.4.

Speaker #1: So we think that is a very good result to achieve. So, the total biomass: 5,600 tons. And if you look at the cost—I mean during the quarter, we have reduced that cost to 4.7, while the average cost, because the cost before has been higher, is 5.4.

Speaker #1: So if we can continue with the cost that we have at the moment, it will gradually come further down. If we look at what we have produced so far in the facility since the start, then it's just over 14,000 tons.

Speaker #1: Mortality has been on a fairly low level under 6% in all batches. Of course, some batches are much lower than that. If we look at the harvest, we are just under 6,000 tons, and we have guided now going forward that only this year we will be between 5,500 and 6,000 tons.

Speaker #1: So, if we can continue with the costs that we have at the moment, it will gradually come further down. If we look at what we have produced so far in the facility since the start, then it's just over 14,000 tons. Mortality has been at a fairly low level—under 6% in all batches. Of course, some batches are much lower than that.

Ragnar Joensen: If we look at what we have produced so far in the facility since the start, then it is just over 14,000 tonnes. Mortality has been on a fairly low level, under 6% in all batches. Of course, some batches are much lower than that. If we look at the harvest, we are just under 6,000 tonnes, and we are guided now going forward that only this year we will be between 5,500 and 6,000 tonnes. Average rate of the harvest, 4.3. We have discussed that we wanted to come up to a higher level, but as we can see with the high biomass that we have right now, we do not have so much flexibility to produce the fish that we have in the facility now much larger.

Speaker #1: If we look at the harvest, we are just under 6,000 tons, and we have guided now going forward that only this year we will be between 5,500 and 6,000 tons.

Speaker #1: Average weight of the harvest, 4.3. We have discussed that we wanted to come up to a higher level, but as we can see with the high biomass that we have right now, we don't have so much flexibility to produce the fish that we have in the facility now much larger. So we have a very high number, good survival rate, and that means that it will take a little bit longer than we have said before to get up the sizes. We have already guided now also to the size this next quarter, or this quarter that we are in now, Q3, will be around the same level that has been in Q2, and we expect the same level in the end of the year.

Speaker #1: So we have a very high number, good survival rate, and that means that it will take a little bit longer than we have said before to get up the sizes.

Speaker #1: We have already guided now also that the size this next quarter or this quarter that we are in now, Q3, will be around the same level that has been in Q2.

Ragnar Joensen: We have a very high number, good survival rate, and that means that it will take a little bit longer than we have said before to get up the sizes. We have already guided now also that the size this next quarter or this quarter that we are in now, Q3, will be around the same level that has been in Q2. We expect the same level in the end of the year. Sometime next year, maybe not the first, but at least the second quarter, we would like to come significantly higher than that. If we could get the size up to Live weight up to 6 to 6.5, we think that that would be really beneficial for the prices and generate good superior share also. Just looking briefly to the project.

Speaker #1: And we expect the same level in the end of the year. And sometime next year, maybe not the first, but at least the second quarter, we would like to come significantly higher than that.

Speaker #1: If we could get the size up to live weight up to 6 to 6.5, we think that that would be a really beneficial for the prices.

Speaker #1: And sometime next year, maybe not the first, but at least the second quarter, we would like to come significantly higher than that. If we could get the size up to live weight up to 6 to 6.5, we think that that would be really beneficial for the prices.

Speaker #1: And generally good superior share also. Then just looking briefly to the project, I mean, now we are in full operations in stage one and stage two.

Speaker #1: So we can say that stage two has also been completed. We still haven't paid all the bills. We but that is just a matter of a process that we always have in such projects.

Speaker #1: And generally good superior share also. Then just looking briefly to the project, I mean now we are in full operations in stage one and stage two, so we can say that stage two has also been completed, we still haven't paid all the bills, we but that is just a matter of a process that we always have in such projects, but as Nia mentioned before, the cost of stage two was significantly lower than we expected when we started the project.

Ragnar Joensen: Now we are in full operations with stage 1 and stage 2, so we can say that stage 2 has also been completed. We still have not paid all the bills, but that is just a matter of a process that we always have in such projects. As I mentioned before, the cost of phase 2 was significantly lower than we expected when we started the project. We are also looking into stage 3 now to design. We have started up on designing. Always, of course, we find some improvements. We think that stage 3 will become a better facility than stage 2, just like stage 2 was a better facility than stage 1. We continue to improve also on that page. We do not know quite yet when the construction will start. There are still some issues to be discussed.

Speaker #1: But as Mia mentioned before, the cost of stage two was significantly lower than we expected when we started the project. And we are also looking into stage three now to design.

Speaker #1: We have started up on designing. Always, of course, we find some improvements. So we think that stage three will become a better facility than stage two, just like stage two was a better facility than stage one.

Speaker #1: And we are also looking into stage three now to design. We have started up on designing. Always, of course, we find some improvements, so we think that stage three will become a better facility than stage two, just like stage two was a better facility than stage one. So we continue to improve also on that stage.

Speaker #1: So we continue to improve also on that stage. And we don't know quite yet when the construction will start. There are still some issues to be discussed.

Speaker #1: And also, of course, we are not alone. We have also the government, and we have financing partners and so on, and all that should be in place before we push the final button that we start.

Speaker #1: And we don't know quite yet when the construction will start. There are still some issues to be discussed, and also, of course, we are not alone—we have also the government, and we have financing partners, and so on—and all that should be in place before we push the final button that we start.

Speaker #1: So okay, from this, I'll just give the word back to our CFO, Tom, and to the financials.

Ragnar Joensen: And also, of course, we are not alone. We have also the government, and we have financing partners and so on, and all that should be in place before we push the final button that we start. So, from this, I will just give the word back to our CFO, Tom, and do the financials if that is possible.

Speaker #3: Thank you, Governor. Yeah, in the second quarter, our revenue was 9.4 million euro. Affecting 84% increase year over year, but perhaps more relevant to 57% increase since Q1 this year.

Speaker #1: So okay, from this I'll just give the word back to our CFO, Tom, and to the financials. Please, Tom.

Speaker #3: Thank you. Yes, in the second quarter, our revenue was €9.4 million, reflecting an 84% increase year over year, but perhaps more relevant, a 57% increase since Q1 this year.

Tom Johan Austrheim: Thank you, Ragnar. In Q2, our revenue was EUR 9.4 million, reflecting an 84% increase year over year, but perhaps more relevant, a 57% increase since Q1 this year. Obviously, the key driver for this is increased harvest volume, also increasing 77% to 1,366 tonnes from Q1 to Q2. We have touched upon the prices, which came in lower at EUR 6.94 compared to Q1 due to market conditions, but also due to the fact that we had harvest volumes skewed to the end of Q2. But we are happy to note that we are above Sitagri 8% all over and 21% for the larger sizes, 5 kilo plus. Farming cost was EUR 6.1 per kilo, which was down from EUR 6.3 in Q1, and this is due to consistently good growth over time. Thereby, we had an operating EBIT of -646,000.

Speaker #3: And obviously, the key driver for this is increased harvest volume, also increasing 77% to 1,362 tons from Q1 to Q2. We have touched upon the prices, which came in lower at 6.94 compared to Q1, due to market conditions, but also due to the fact that we had harvest volumes skewed to the end of Q2.

Speaker #3: Due to market conditions, but also due to the fact that we had harvest volumes skewed to the end of Q2. But we are happy to note that we are above seat agree 8% all over and 21% for the larger sizes 5 kilo plus.

Speaker #3: Farming cost was 6.1 euro per kilo. Which was down from 6.3 in Q1. And this is due to consistently good growth over time. And thereby we had an operating edit of minus 646,000.

Speaker #3: But we are happy to note that we are above set targets—8% overall, and 21% for the larger sizes, 5 kilos plus. Farming cost was €6.10 per kilo, which was down from €6.30 in Q1, and this is due to consistently good growth over time.

Speaker #3: We had fair value adjustments during Q2 of minus 4.2, reflecting then lower price band. And we had financial items in Q2 of positive 100,000, basically, due to unrealized currency gains.

Speaker #3: And thereby we had an operating EBIT of minus 646,000. We had fair value adjustments during Q2 of minus 4.2 million, reflecting the lower price band. We had financial items in Q2 of positive 100,000, basically due to unrealized currency gains.

Tom Johan Austrheim: We had fair value adjustments during Q2 of -4.2, reflecting the lower price trend. We had financial items in Q2 of +100,000, basically due to unrealized currency gains. So that gives a loss for the quarter of EUR 4 million. Then we had positive net cash flow of 722,580 from operations and about 140 net from investments of CapEx into stage 2 and financing of the same. Cash at end of quarter, EUR 5.4 million and equity EUR 108 million corresponding to 56%. Then we have a loan agreement with a broad base of Chinese banks for the long-term project finance and for the working capital. For the project finance, we have drawn equivalent to EUR 37 million of the EUR 49 million available, leaving EUR 12 million approximately for remaining CapEx. For the working capital finance, we have currently around EUR 8 million available and have drawn five of those.

Speaker #3: So that gives a loss for the quarter of 4 million euro. Then we had positive net cash flows 722,000, 580 from operations, and about 140 net from investments or capex into stage two, and financing of the same.

Speaker #3: So that gives a lot for the quarter of €4 million. Then we had positive net cash flows of €722,000 — €580,000 from operations and about €140,000 net from investments, or CapEx, into stage two and financing of the same.

Speaker #3: Cash at end of quarter, 5.4 million, and equity 108 million corresponding to 56%. Then we have a loan agreement with a broad base of Chinese banks for the long-term project finance and for the working capital.

Speaker #3: Cash at the end of the quarter was $5.4 million and equity was $108 million, corresponding to 56%. Then, we have a loan agreement with a broad base of Chinese banks for the long-term project finance and for the working capital.

Speaker #3: For the project finance, we have grown equivalent to 37 million of the 49 million available, leaving 12 million approximately for remaining capex. And for the working capital finance, we have currently around 8 million available and have drawn 5 of those.

Speaker #3: For the project finance, we have drawn the equivalent of €37 million of the €49 million available, leaving approximately €12 million for the remaining capex. For the working capital finance, we currently have around €8 million available and have drawn €5 million of that.

Speaker #3: For stage three, we will address the financing with our bank group as we progress our process towards final investment decision. So back to you.

Tom Johan Austrheim: For stage 3, we will address the financing with our bank group as we progress our process towards final investment decision. So, back to you.

Speaker #2: Thank you. Thank you, Tom. I'll just remind people also once more that if you have any questions, there's a timely relay delay in writing comments and questions.

Speaker #2: So please write now so we can see them when we end the presentation. But we'll just have a brief look at the outlook and as we as Andreas mentioned, also the market is growing still as we can see here in China, significantly.

Speaker #2: Thank you. Thank you, Tom. I'll just remind people once more that if you have any questions, there's a slight delay in relaying comments and questions, so please write now so we can see them when we end the presentation.

Ragnar Joensen: Thank you. Thank you, Tom. I will just remind people once more that if you have any questions, there is a tiny delay in writing comments and questions. Please write now so we can see them when we end the presentation. We will just have a brief look at the outlook. As Andreas mentioned, the market is still growing, as we can see here in China, significantly. If you look at harvest volumes for Q3, we expect to be between 1,400 and 1,600 tonnes during this quarter. This is a similar average size as we had the quarter before, 4.5 kilo. We can say that we started to harvest some of the Q3 fish now mid-early in the quarter. So we will come up to full harvest volumes in the time to come. For the year, we now guide 5,500 to 6,000 tonnes.

Speaker #2: And if you look at harvest volumes for Q3, we expect to be between 1,400, 1,600 tons during the quarter. And similar average effects as we had quarter before, 4.5 kilo.

Speaker #2: But we'll just have a brief look at the outlook, and as Andreas mentioned, the market is still growing, as we can see here in China, significantly. If you look at harvest volumes for Q3, we expect to be between 1,400 and 1,600 tons during the quarter, with similar average weights as we had the quarter before, 4.5 kilos. We can say that we started to harvest some of the Q3 fish now, early or mid-early in the quarter, so we will come up to full harvest volumes also in the time to come.

Speaker #2: And we can say that we started to harvest some of the Q3 fish now early in our mid-early in the quarter. So we will come up to full harvest volumes also.

Speaker #2: In the time to come. For the year, we now guide 5,500 to 6,000 tons and if we look at the price achievements, of course, as has been mentioned, we are above the seat agree with the bigger fish on 21%, 8% on average.

Speaker #2: So that the smaller fish is still not really paying a large premium compared with seat agree. And as we can move forward and get the sizes up as we intend, then the price achievement should further improve from stage that we're at now.

Speaker #2: For the year, we now guide 5,500 to 6,000 tons, and if we look at the price achievements, of course, as has been mentioned, we are above the Shanghai EAT agreement with the bigger fish at 21%, 8% on average. So, the smaller fish is still not really paying a large premium compared with the Shanghai EAT agreement, and as we can move forward and get the sizes up as we intend, then the price achievement should further improve from the stage that we're at now.

Ragnar Joensen: If we look at the price achievements, of course, as has been mentioned, we are above the Sitagri with the bigger fish on 21%, 8% on average, so the small fish is still not really paying a large premium compared with Sitagri. As we can move forward and get the sizes up as we intend, then the price achievement should further improve from the stage that we are at now. Looking at the cost, we just mentioned it briefly, we are producing in Q2 at a lower rate than the standing biomass, so the cost development is going down. Of course, we know also that there will be some negative effects going forward, mainly from increased feed prices. So we will see next quarter or the next quarters how development will be, including some increases.

Speaker #2: Looking at the cost, we just mentioned it briefly, we are producing in Q2 at a lower rate than the standing biomass. So the cost development is going down.

Speaker #2: But of course, we know also that there will be some negative effects going forward, mainly from increased feed prices. So we will see next quarter of the next quarters how the development will be, including some increases also.

Speaker #2: Looking at the cost, we just mentioned it briefly. We are producing in Q2 at a lower rate than the standing biomass, so the cost development is going down. But of course, we also know that there will be some negative effects going forward, mainly from increased feed prices. So we will see next quarter, or the next quarters, how the development will be, including some increases also.

Speaker #2: So the production is still running according to what we call full run rate on stage two. And as I mentioned before, we are working with stage three project.

Speaker #2: And we'll come back to you with the final when the final decision will be made. But it can be made by the end of this year or early next year.

Speaker #2: So we the production is still running according to what we call full run rate on stage two, and as I mentioned before we are working with stage three project, and we'll come back to you with the final when the final decision will be made, but it can be made by the end of this year or early next year we will still wait to announce when exactly we think that we should put on the start button for the stage three project.

Ragnar Joensen: The production is still running according to what we call full run rate on phase 2. As I mentioned before, we are working with the phase 3 project, and will come back to you when the final decision is made. It can be made by the end of this year or early next year. We will still wait to announce when exactly we think that we should put on the start button for the phase 3 project. If you just go briefly to the summary of what we have presented today, then we can say that the financials, EUR 0.6 million loss at the EBIT value. Harvest fine, production very good. Project completed, number 2, and well away also to get ready for starting on phase 3. With this, we conclude the presentation today. Thank you for listening.

Speaker #2: We will still wait to announce when exactly we think that we should put on the start button for the stage three project. If we just go briefly to the summary of what we have presented today, then we can say that the financials 0.6 million loss at the EBIT value.

Speaker #2: If we just go briefly to the summary of what we have presented today, then we can say that the financials: €0.6 million loss at the EBIT value; and harvest, fine; production, very good; and project completed, number two, and well underway also to get ready for starting on stage three.

Speaker #2: And harvest fine, production very good. And project completed number two and well away also to do get ready for starting on stage three. So with this, we conclude the presentation today.

Speaker #2: Thank you for listening. And then I just want to ask my people, my personal in Oslo, Tom, are there any questions, comments?

Speaker #3: Yeah. I will read some of the questions we have a second people have. But yeah, I will start with one what is expected timeline for ramping up harvest weights beyond Q3 this year?

Speaker #2: So with this, we conclude the presentation today. Thank you for listening. And then I just want to ask my people, my personnel in Oslo—Tom, are there any questions or comments?

Ragnar Joensen: I just want to ask my person in Oslo, Tom, are there any questions, comments?

Speaker #1: Yeah, I will read

Tom Johan Austrheim: Yep. I will read some of the questions we have, people have. I will start with one. What is the expected timeline for ramping up harvest weights beyond Q3 this year?

Speaker #3: Some of the questions we have, other people have as well, but yeah, I will start with one. What is the expected timeline for ramping up harvest weights beyond Q3 this year?

Speaker #2: Yeah. I mentioned it in the presentation also that we will come with larger sizes and I think we can be quite okay with saying at least Q2 and we will see if we are able to take the harvest rates up before that.

Speaker #2: But at least in Q2 next year, that's when we expect to come down. We could of course do some things so that we could get it quicker if we just harvested quite a bit of small fish now, then all the fish would be going to the higher size.

Speaker #2: Yeah, I mentioned it in the presentation also, that we will come with larger sizes, and I think we can be quite okay with saying at least Q2. We will see if we are able to take the harvest rates up before that, but at least in Q2 next year, that's when we expect to come down.

Ragnar Joensen: Yeah, I mentioned it in the presentation also that we will come with larger sizes. I think we can be quite okay with saying at least Q2, and we will see if we are able to take the harvest weights up before that, but at least in Q2 next year, that is when we expect to come down. We could, of course, do something so that we could get it quicker. If we just harvested quite a bit of small fish now, then all the fish would be going to the higher size sooner. But we think it is better both working with the customers and also, for the total financial picture that we gradually build it up. On the prices, I think there was a question also, then I think, I will leave it to Managing Director here, Andreas, to answer.

Speaker #2: Sooner. But we think it's better both working with the customers and also for the total financial picture that we gradually build it up. And on the prices, I think there was a question also.

Speaker #2: We could, of course, do some things so that we could get it quicker. If we just harvested quite a bit of small fish now, then all the fish would be going to the higher size sooner, but we think it's better—both working with the customers and also for the total financial picture—that we gradually build it up.

Speaker #2: Then I think I will leave it to managing director here to answer. Can you repeat the question just what it was? Wasn't there a price question also?

Speaker #2: And on the prices, I think there was a question. Also, I think I will leave it to our Managing Director here, Andreas, to answer.

Speaker #3: It was that the first one was on harvest weights.

Speaker #2: Okay.

Speaker #3: But we have on price, on price achievement, should we expect a similar price premium in Q3 as Q2 given flattish average harvest weights? And what you're expecting Q4?

Speaker #2: Can you repeat the question, just what it was on? Wasn't there a price question also?

Ragnar Joensen: Can you repeat the question, just what it was on? Was not there a price question also?

Speaker #3: It was that the first one was on harvest weights. But we have on price on price achievement, should we expect a similar price premium in Q3 as Q2 given flattish average harvest weights?

Tom Johan Austrheim: The first one was on harvest weight.

Ragnar Joensen: Okay.

Speaker #2: Yeah, I think what we have seen so far from the trajectory from Q1 to Q2 was that we had more or less a similar harvest size.

Tom Johan Austrheim: But we have one on price. On price achievement, should we expect a similar price premium in Q3 as Q2, given flattish average harvest weight? What do you expect in Q4?

Speaker #2: We were able to take up the premium on the total which was 8% on seat agree. So with more volumes, we were able to realize a better overall premium.

Speaker #3: And what do you expect in Q4?

Speaker #2: Yeah, I think what we have seen so far from the trajectory from Q1 to Q2 was that we had more or less a similar harvest size. We were able to take up the premium on the total, which was 8% on spot, so with more volumes we were able to realize a better overall premium. I think that's due to the development we've done in the market. We have a very dedicated commercial team that is hands-on with the customers, and I think our job now is just to continue that trajectory and to do as best as we can in terms of achieving price achievement, also for sizes that are a bit smaller than what is the usual standard in China. So what the actual projection or this result will be on that, it remains to be seen, but I think we all feel very confident that we are doing the right things here and that this should be reflected also in the premium. But obviously it's size-related as such, so don't expect any big changes to it, but we feel positive about the development going on.

Andreas Thorud: Yeah, I think, what we have seen so far, from the trajectory from Q1 to Q2, was that we had more or less a similar harvest size. We were able to take up the premium on the total, which was 8% on Sitagri. So with more volumes, we were able to realize a better overall premium. I think that's due to the development we've done in the market. We have a very dedicated commercial team that is hands-on with the customers. I think our job now is just to continue that trajectory and to do as best as we can in terms of achieving price achievement. Also for sizes that are a bit smaller than what is the usual standard in China. So what the actual projection or this result will be on that, it remains to be seen.

Speaker #2: And I think that's due to the development we've done in the market. We have a very dedicated commercial team that is hands-on with the customers.

Speaker #2: And I think our job now is just to continue that trajectory and to do as best as we can in terms of achieving price achievement.

Speaker #2: Also for sizes that are a bit smaller than what is the usual standard in China. So what the actual projection or this result will be on that, it remains to be seen.

Speaker #2: But I think we all feel very confident that we are doing the right things here. And that this should be reflected in also the premium.

Speaker #2: But obviously, it's size related as such. So don't expect any big changes to it. But we feel positive about the development going on.

Andreas Thorud: But I think we all feel very confident that we are doing the right things here and that this should be reflected in also the premium. Obviously it's size related as such, so don't expect any big changes to it. But we feel positive about the development going on.

Speaker #3: Okay. Thank you, Andreas. I will read one which I think I can answer here. And that's on P&L costs. Should we see a similar realized reduction in Q3 as Q2?

Speaker #3: And I would suggest that the answer to that is that we'll probably see a similar type of cost positive movement for continued growth. And that the negative movement from increased feed costs so probably in the same range or same area.

Speaker #3: Okay, thank you, Andreas. I will read one which I think I can answer here, and that's on P&L cost. Should we see a similar realized reduction in Q3 as in Q2?

Tom Johan Austrheim: Okay. Thank you, Andreas. I will read one which I think I can answer here, and that's on P&L costs. Should we see a similar realized reduction in Q3 as Q2? I would suggest that the answer to that is that we'll probably see a similar type of cost, positive movement for continued growth and with a negative movement from increased feed costs. So probably in the same range or same area. Then there's the question on remaining CapEx and available liquidity. On that one, I would say that we expect the available project loan to cover the remaining CapEx for phase 2. So we expect no cash draw on operational cash for CapEx. Then, we have one say Yeah. Perhaps one more on price. What is your fish sold for in China relative to Norwegian salmon in China at equal harvest weights?

Speaker #3: And I would suggest that the answer to that is that we'll probably see a similar type of cost-positive movement for continued growth, and that the negative movement from increased feed costs—so probably in the same range or the same area.

Speaker #3: And then there's the question on remaining capex and available liquidity. And on that one, I would say that we expect the available project loan to cover the remaining capex for stage two.

Speaker #3: And then there's a question on remaining capex and available liquidity. On that one, I would say that we expect the available project loan to cover the remaining capex for stage two, so we expect no cash draw on operational cash for capex.

Speaker #3: So we expect no cash draw on operational cash for capex. Then we have have perhaps one more on price. What is your fish sold for in China relative to Norwegian salmon in China at equal harvest weights?

Speaker #3: Then we have one—yeah, we have perhaps one more on price: What is your fish sold for in China relative to Norwegian salmon in China at equal harvest weights?

Speaker #3: That will be Andreas, I guess.

Speaker #2: At the moment, we are benchmarking ourselves towards seat agreeing index. And I don't believe there is an average Norwegian price as such in the market.

Speaker #3: That will be Andreas, I guess.

Speaker #2: You will see different prices from different not only origins, but sometimes suppliers when you come to at least a wholesale market for the bigger size.

Tom Johan Austrheim: That will be Andreas, I guess.

Andreas Thorud: At the moment, we are benchmarking ourselves towards the Sitagri index. I do not believe there is an average Norwegian price as such in the market. You will see different prices from different, not only origins, but sometimes suppliers when you come to at least the wholesale market for the bigger size. We see that we are doing very well when it comes to the 6-plus size. Obviously, as the prices go down, you will not find that much Norwegian salmon in the same price range. So in overall, on the sizes where we see that basically where we are going to get the premium, we feel comfortable with the position we are there. I think it is also reflected already in the Sitagri premium.

Speaker #2: At the moment, we are benchmarking ourselves towards the Sitragrid Index, and I don't believe there is an average Norwegian price as such in the market. You will see different prices from different, not only origins, but sometimes suppliers when you come to at least a wholesale market for the bigger size. We see that we are doing very well when it comes to the 6+ size. Obviously, as the prices go down, you will not find that much Norwegian salmon in the same price range. So, overall, on the sizes where we see that, based on where we’re going to get the premium, we feel comfortable with the position we are there. And I think it is also reflected already in the Sitragrid premium.

Speaker #2: We see that we are doing very well when it comes to the six plus size. Obviously, as the prices go down, you will not find that much Norwegian salmon in the same price range.

Speaker #2: So in overall, on the sizes where we see that based on where we're going to get the premium, we feel comfortable with the position we are there.

Speaker #2: And I think it also reflected already in the seat agree premium.

Speaker #3: And then the last question we have is if salmon prices remain at our current level for the next 12, 18 months, do you expect to reach positive EBITDA without further cost reductions?

Speaker #3: And so we already have a positive EBITDA. We have given some price and cost indications. So other than that, we don't generally guide on EBITDA other than noting that it's already positive in this quarter.

Speaker #3: And then the last question we have is: If salmon prices remain at our current level for the next 12 to 18 months, do you expect to reach positive EBITDA without further cost reductions?

Tom Johan Austrheim: The last question we have is: If salmon prices remain at their current level for the next 12, 18 months, do you expect to reach positive EBITDA without further cost reductions? Well, we already have a positive EBITDA. We have given some, you can say, price and cost indications. Other than that, we do not generally guide on EBITDA other than noting that it is already positive in this quarter.

Speaker #3: And so we already have a positive EBITDA. We have given some price and cost indications, so other than that, we don't generally guide on EBITDA, other than noting that it's already positive in this quarter.

Speaker #2: Maybe it's confusing when we say we have a loss on the EBIT level. If we reported on EBITDA level, it would be quite positive.

Speaker #2: So just because we report on the EBIT level, that maybe there's a confusion since the question was there. Okay, so this was the last question, Tom.

Speaker #2: Yes, maybe it's confusing when we say we have a loss at the EBIT level. If we reported at the EBITDA level, it would be quite positive.

Ragnar Joensen: Maybe it is confusing when we say we have a loss on the EBIT level. If we report it on EBITDA level, it will be quite positive. Just because we report on the EBIT level, maybe there is a confusion there since the question was there. Okay, so this was the last question, Tom?

Speaker #3: It was, yes.

Speaker #2: So, just because we report on the EBIT level, maybe there's a confusion there, since the question was there. Okay, so this was the last question, Tom.

Speaker #3: It was, yes.

Tom Johan Austrheim: It was, yes.

Ragnar Joensen: Excellent. Then we just thank you all for attending and see you maybe next time on 12 November. Thanks so much.

Browse all earnings call transcripts

Q2 2026 Nordic Aqua Partners AS Earnings Call

Request TrialDemo

Nordic Aqua Partners

Earnings