Note 1 - Summary of significant accounting policies
General information
Salmon Evolution ASA is a Norwegian public limited liability company listed on Oslo Stock Exchange. Salmon Evolution ASA and its subsidiaries, Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Dale AS and Salmon Evolution Sales AS (the \u201cCompany\u201d, \u201cSE\u201d or \u201cthe Group\u201d) is a Norwegian business headquartered in Hustadvika kommune in M\u00f8re og Romsdal. SE is building a land-based salmon farming facility at Indre Har\u00f8y, with a planned annual production of 31,500 tons HOG fully developed of which phase 1 has a planned annual production of 7,900 tons HOG.
The build-out consists of three phases, with the first phase consisting of 12 large grow out tanks with corresponding infrastructure. SE will operate a hybrid flow-through (HFS) system, utilizing fresh seawater from the Norwegian coast. Construction start of phase I was in Q2 2020 and was completed mid April 2023. The first smolt batch was released at Indre Har\u00f8y late March 2022 as per original timeline, and the Group completed its first harvest in November 2022. Phase II consists of build out of an additional 12 grow out tanks with first smolt expected entered late Q1 2026. The last construction phase, phase III, consists of build-out of an additional 24 grow out tanks.
Consolidation
These consolidated statements for the period ended 31 December 2024 include Salmon Evolution ASA together with its subsidiaries Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Sales AS and Salmon Evolution Dale AS.
Consolidation principles
Subsidiaries are all entities over which the Group has control. The Group controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable
returns. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. The accompanying consolidated financial statements include the accounts of the subsidiaries mentioned above. When necessary, adjustments are made to the local financial statements of the Group subsidiaries to conform with the consolidated Group\u2019s accounting policies presented under IFRS. All intercompany balances, transactions, and unrealized gains from intercompany transactions are eliminated upon consolidation. Unrealized losses from intercompany transactions are also eliminated upon consolidation unless the transaction provides evidence of an impairment of the transferred asset. The assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date in which the Group gains control until the date in which the Group ceases to control the subsidiary.
Basis of preparation
The consolidated financial statements of the Group for the year ended 31 December 2024 is prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU. The consolidated financial statements ended 31 December 2024 comprise the income statement, statement of comprehensive income, statement of financial position, statement of cash flow, statement of changes in equity and note disclosures.
Going concern
The Group has prepared the consolidated financial statement on a going concern basis. When assessing this assumption, management has assessed all available information about the future. After making such assessments, management has a reasonable expectation that the Group has adequate resources to continue its operational existence for the foreseeable future.
Accounting policies
Adoption of new and revised standards
There are no new standards that have been applied in 2024 with significant effect on the financial statements.
\u00a0\u00a0
IFRS 18 Presentation and Disclosure in Finansiel Statements is effective for reporting periods beginning on or after 1 January 2027. The Group is currently working to identify all impacts the new requirements for presentation will have on the primary financial statements and notes to the financial statements.
Basis of measurement
The financial statements have been prepared under the historical cost basis, except for the following items:
- Financial derivatives, measured at fair value through profit or loss.
- Biological assets, measured at fair value through profit or loss.
Use of estimates
Critical accounting judgments and estimates are disclosed in note 2.
Functional and presentation currency
Items included in the financial statements are presented in the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The financial statements are presented in Norwegian kroner (NOK), which is the Parent company, and substantial subidiaries, functional and presentation currency.
Transactions and balances
Transactions in currencies other than the entity's functional currency (foreign currency) are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other financial items. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are not subsequently revaluated.
Revenue
Revenue from contracts with customers as defined in IFRS 15 is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the group expects to be entitled in exchange for those goods.
Revenue for the Group derives both from the sale of smolt from contract with customer and sale of whole and processed salmon in the spot marked. It has not been made any forward sales contracts. The Group recognised revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the expected amount that the group is entitled to have for the goods. The sales price is based on available market price where the price will vary with both quality and size.
Normal credit term of the sales transactions is 30 days. If the delivered products has discrepancies compared to the agreed sales contract, cash refunds are given to the customer. Up until now, refunds are not material.
Government grants
Government grants are recognized when there is reasonable assurance that the grant will be received and when the Group is compliant with all conditions attached. When the grant relates to an expense item, it is recognized as income over the period that the costs it is intended to compensate are expensed. When the grant relates to an asset, it is deducted from the carrying amount of the asset - the grant is then recognized in profit or loss over the useful life of a depreciable asset by way of a reduced depreciation charge. Government grants are presented in the accompanying statements of profit and loss as other income. See note 16for further details.
Employee benefits
Liabilities for wages and salaries, including equity settled share based payments, non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees\u2019 services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Share based payments
The fair value of options granted under the scheme is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:
- including any market performance conditions (eg the entity\u2019s share price)
- excluding the impact of any service and non-market performance vesting conditions (eg profitability, sales growth targets and remaining an employee of the entity over a specified time period), and
- including the impact of any non-vesting conditions (eg the requirement for employees to save or holdings shares for a specific period of time).
Total fair value is expensed over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Information relating to the Groups's employee stock option scheme is set out in note 9.
Current and change in deferred tax for the year
Income Tax
The tax expense represents the sum of the tax currently payable and change in deferred tax.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized.
Current tax and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Deferred tax benefit has not been recognised in the balanse sheet as the Group is in its start-up phase and does no have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit.
Leases
The Group assesses whether a legally enforceable contract is or contains a lease at the inception date of the contract. The assessment includes several criteria to be determined based on judgment that includes whether there is an identifiable asset in connection to the lease, whether the Group has the right to control the use of the identifiable asset, and whether the Group can obtain substantially all economic benefits from the identifiable asset.
The Group recognizes a right-of-use (\u201cROU\u201d) asset and a lease liability at the lease commencement date. The lease liability is calculated based on the present value of the contractual minimum lease payments using the incremental interest rate of the lease. The contractual minimum lease payments consist of fixed payments based on contractual amount at the time of conclusion of the agreement. The lease liability is subsequently measured at amortized cost under the effective interest rate during the
lease term and may also be adjusted to management\u2019s reassessment of future lease payments based on options exercised renegotiations, or changes of an index rate. The ROU asset is calculated based on the lease liability, plus initial direct costs towards the lease, and less any incentives granted by the lessor. The ROU asset is subsequently amortized under the straight-line method under the shorter of the lease term or the useful life of the underlying asset and is included as part of depreciation and amortization in the accompanying statements of other comprehensive income.
Leases that fall under the IFRS 16 short-term exception are recognized on a straight-line basis over the lease term.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity intrument for another entitiy.
Interest rate swap
The Group has entered into interest rate swap to hedge its risk exposure to interest-bearing debt. Changes in fair value of those derivates is recognized as unrealized profit/loss under financial income/loss and allocated to, an unrealized profit/loss as other current receivables in the balance sheet.
Currency hedging
Salmon Evolution Sales AS make use of forward currency contracts to hedge against fluctations in exchange rates that arises during the period between when Salmon Evolution Sales enters into a sales contract and when the product is paid for. Changes in fair value of those contracts is recognized as unrealized profit/loss under finacial income/loss and to other current receivables in the balance sheet.
Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and deposits held at call with financial institutions.
Trade receivables, loans and other receivables
Trade receivables, loans and other receivables are recognized at invoiced amount and subsequently measured at amortized cost using the effective interest method, less provision for impairment. See note 3, 17and 18for further information about the Group\u2019s accounting for trade receivables, loans, other receivables and credit risk.
Property, plant & equipment
Property, plant, and equipment is measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and costs include expenditures that are directly attributable to the acquisition and placement of fixed assets in service. Costs of major replacements and renewals that substantially extend the economic life and functionality of fixed asset are capitalized. Costs associated with normal maintenance and repairs are expensed as incurred.
Assets are normally considered property, plant, and equipment if the useful economic life exceeds one year. Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset\u2019s historical cost. If a substantial part of an asset has an individual and different useful life, that portion is depreciated separately. The asset\u2019s residual value and useful life are evaluated annually. Gains
or losses arising from the disposal or retirement of an asset are determined as the difference between the sales proceeds and the carrying amount of the asset and recognized as part of other income in the accompanying statements of profit and loss.
Depreciaton is charged to expense when the property, plant or equipment is ready for intented use.The group considered the test- and verification phase for first phase of its Indre Har\u00f8y facility ready for intended use from April 2023, and started depreciations from that time. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction is not depreciated.
Intangible assets
Expenses related to research activities are expensed as incurred. Expenses related to development activities are capitalized if the product or process is technically and commercially feasible, and the Group has adequate resources to complete the development.
Patents are capitalized and measured at cost less accumulated amortization and any accumulated impairment losses, if any.
Goodwill
When the Group assumes control over a separat business entity for a consideration that exceeds the fair value of the individual assets and liabilities assumed, the difference is entered as goodwill in the statement of financial position. Goodwill is not depreciated but is tested for impairment annually if there are indications that its value is lower than the carrying amount. See note 11for further information.
Impairment
Management reviews long-lived assets for impairment annually, or more frequently, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. When such assets are identified, with certain indicators, an impairment test will be carried out.
If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset\u2019s carrying value to determine if an adjustment for impairment to such asset is necessary. The effect of any impairment would be to expense the difference between the fair value of such asset and it\u2019s carrying value. Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
Seenote 11for further description.
Biological assets
Biological assets are, in accordance with IAS 41, measured at fair value. For salmon in the grow-out facility, a present value model is applied to estimate the fair value. For roe, fry and smolt, historical cost is deemed to provide the best estimate of fair value, and hence applied. For further information, please refer to note 6.
Classification of current and non-current items
Assets are classified as current when it expected to be realized or sold, or to be used in the Group's normal operating cycle, or falls due or is expected to be realized within 12 months after the end of the reporting date. Assets that do not fall under this definition is classified as non-current. Liabilities are
classified as current when they are expected to be settled in the normal operating cycle of the Group or are expected to be settled within 12 months after the reporting date, or if the Group does not have an unconditional right to postpone settlement for at least 12 months after the reporting date. Liabilities that do not fall under this definition are classified as non-current.
Trade and Other Receivables
Trade receivables are initially recognized at amortized cost, less a provision for expected credit losses. Credit loss provisions are based on individual customer assessments over each reporting period and not on a 12-month period.
The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2024, not considered to be material.
In 2024 all produced fish was mainly sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance.
Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings derecognized when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in consolidated statement of profit or loss within the line other financial items, net.
Borrowings are classified as current liabilities unless the Group has a right to defer settlement of the liability for at least 12 months after the reporting period.
Borrowings cost
In accordance with IAS 23, the Group\u2019s loan agreements are subject to the following principles relating to borrowing costs:
General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
Trade and Other Payables
Trade and other payables represent unpaid liabilities for goods and services provided to the Group prior to the end of the financial year and are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade and other payables are recognized initially at their fair value and are subsequently measured at amortized cost using the effective interest method.
Pensions
The Group offers a defined contribution plan to its employees and pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The Group has no further payment obligations once the contributions have been paid. Contributions are recognized as employee benefit expense when they are due and are included as part of salary and personnel costs in the statement of profit and loss. Prepaid contributions are recognized as an asset to the extent in which a cash refund or a reduction in the future payments is available.
Statement of cash flows
The accomanying statements of cash flows are prepared in accordance with the indirect method
General information
Salmon Evolution ASA is a Norwegian public limited liability company listed on Oslo Stock Exchange. Salmon Evolution ASA and its subsidiaries, Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Dale AS and Salmon Evolution Sales AS (the \u201cCompany\u201d, \u201cSE\u201d or \u201cthe Group\u201d) is a Norwegian business headquartered in Hustadvika kommune in M\u00f8re og Romsdal. SE is building a land-based salmon farming facility at Indre Har\u00f8y, with a planned annual production of 31,500 tons HOG fully developed of which phase 1 has a planned annual production of 7,900 tons HOG.
The build-out consists of three phases, with the first phase consisting of 12 large grow out tanks with corresponding infrastructure. SE will operate a hybrid flow-through (HFS) system, utilizing fresh seawater from the Norwegian coast. Construction start of phase I was in Q2 2020 and was completed mid April 2023. The first smolt batch was released at Indre Har\u00f8y late March 2022 as per original timeline, and the Group completed its first harvest in November 2022. Phase II consists of build out of an additional 12 grow out tanks with first smolt expected entered late Q1 2026. The last construction phase, phase III, consists of build-out of an additional 24 grow out tanks.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__10": { "value": "General information
Salmon Evolution ASA is a Norwegian public limited liability company listed on Oslo Stock Exchange. Salmon Evolution ASA and its subsidiaries, Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Dale AS and Salmon Evolution Sales AS (the \u201cCompany\u201d, \u201cSE\u201d or \u201cthe Group\u201d) is a Norwegian business headquartered in Hustadvika kommune in M\u00f8re og Romsdal. SE is building a land-based salmon farming facility at Indre Har\u00f8y, with a planned annual production of 31,500 tons HOG fully developed of which phase 1 has a planned annual production of 7,900 tons HOG.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCompositionOfGroupExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__8": { "value": "public limited liability company ", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__11-1": { "value": "Consolidation
These consolidated statements for the period ended 31 December 2024 include Salmon Evolution ASA together with its subsidiaries Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Sales AS and Salmon Evolution Dale AS.
Consolidation principles
Subsidiaries are all entities over which the Group has control. The Group controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable
returns. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. The accompanying consolidated financial statements include the accounts of the subsidiaries mentioned above. When necessary, adjustments are made to the local financial statements of the Group subsidiaries to conform with the consolidated Group\u2019s accounting policies presented under IFRS. All intercompany balances, transactions, and unrealized gains from intercompany transactions are eliminated upon consolidation. Unrealized losses from intercompany transactions are also eliminated upon consolidation unless the transaction provides evidence of an impairment of the transferred asset. The assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date in which the Group gains control until the date in which the Group ceases to control the subsidiary.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__13": { "value": "Basis of preparation
The consolidated financial statements of the Group for the year ended 31 December 2024 is prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU. The consolidated financial statements ended 31 December 2024 comprise the income statement, statement of comprehensive income, statement of financial position, statement of cash flow, statement of changes in equity and note disclosures.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__14": { "value": "Going concern
The Group has prepared the consolidated financial statement on a going concern basis. When assessing this assumption, management has assessed all available information about the future. After making such assessments, management has a reasonable expectation that the Group has adequate resources to continue its operational existence for the foreseeable future.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__15": { "value": "Accounting policies
Adoption of new and revised standards
There are no new standards that have been applied in 2024 with significant effect on the financial statements.
\u00a0\u00a0
IFRS 18 Presentation and Disclosure in Finansiel Statements is effective for reporting periods beginning on or after 1 January 2027. The Group is currently working to identify all impacts the new requirements for presentation will have on the primary financial statements and notes to the financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__16": { "value": "Accounting policies
Adoption of new and revised standards
There are no new standards that have been applied in 2024 with significant effect on the financial statements.
\u00a0\u00a0
IFRS 18 Presentation and Disclosure in Finansiel Statements is effective for reporting periods beginning on or after 1 January 2027. The Group is currently working to identify all impacts the new requirements for presentation will have on the primary financial statements and notes to the financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__17-1": { "value": "Use of estimates
Critical accounting judgments and estimates are disclosed in note 2.
Note 2 - Critical estimates and judgments
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Group\u2019s accounting policies.
In the process of applying the Group\u2019s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Group\u2019s financial statements:
1) Biological assets
Biological assets comprise of eggs, smolt and live fish in each tank at the grow-out facility at Indre Har\u00f8y. These assets are accounted for in accordance with IAS 41, and measured at fair value unless the fair value cannot be measured reliably. The estimation of the fair value relies on a series of uncertain assumptions, e.g., biomass volume, quality, size, market prices, expected future costs, remaining time to harvest.
All deviations in biomass volume compared to estimates, is measured when a tank is harvested out. The deviations are normally relatively minor. Similarly, the quality if the fish can normally be estimated with a relatively high degree of certainty, based on historic data and regular controls, given that the fish is kept in a controlled environment in each tank. Categorization of quality is set at facility level. Given that Salmon Evolution split and grade each batch two times in each production cycle, the size distribution in each batch harvested out is normally minor.
The accumulated production cost of is based on an allocation of cost to each batch at tank level. The accumulated production cost per kg will normally only deviate from the estimate if the biomass volume is different from the estimate. For estimation of future production costs, there is uncertainty with regards to feed prices, other input costs and biological development. Salmon Evolution tracks and measures cost development vs. expectation for all batches as part of the normal monthly financial closing process. The estimation of future production costs influences the biomass value through the fair value adjustment.
A key estimate in the estimation of fair value is the assumed market price, which is the price that Salmon Evolution expect to receive at a future date when the live fish is harvested. Given that Salmon Evolution harvest salmon in Norway, Sisalmoni is used with relevant adjustments (see note 6for more information).
See note 6for sensitivity analysis of biomass.
2) Capitalised costs as assets under construction
As part of the construction of the Group's production facilities, the Group has capitalized certain costs (such as personnel expenses, rent of premises and equipment and other project related costs), as \"assets under construction\" in accordance with IAS 16 based on an allocation key. The allocation key is employee-based and has been calculated based on the employees that are directly involved in the assets under construction's share of the total salary in the Group. Reference is made to note 11for details of additions to \"assets under construction\".
3) Financial derivatives
The purpose of the Group\u2019s risk management activities is to establish an overview of financial risks that excists at any given time. As of this date the Group has chosen to employ both interest rate swap agreements to create interest rate stability and power hedging contracts to create stable power supply prices.
The derivative financial assets relate to hedging contracts for the Company\u2019s interest rate exposure and consist of an interest rate swap contract of NOK 50 million in Sparebanken Vest and a similar contract of NOK 150 million in Nordea. Both contracts are due January 2028, and has to a swap fixed interest of 1.79 %. Changes in Market Value is registered as unrealized profit/loss under financial income and allocated to, an unrealized profit/loss as other current receivables and debt in the balance sheet.
See note 19for more information on classes of financial instruments measured at fair value.
Functional and presentation currency
Items included in the financial statements are presented in the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The financial statements are presented in Norwegian kroner (NOK), which is the Parent company, and substantial subidiaries, functional and presentation currency.
Transactions and balances
Transactions in currencies other than the entity's functional currency (foreign currency) are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other financial items. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are not subsequently revaluated.
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Items included in the financial statements are presented in the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The financial statements are presented in Norwegian kroner (NOK), which is the Parent company, and substantial subidiaries, functional and presentation currency.
Transactions and balances
Transactions in currencies other than the entity's functional currency (foreign currency) are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other financial items. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are not subsequently revaluated.
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Revenue from contracts with customers as defined in IFRS 15 is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the group expects to be entitled in exchange for those goods.
Revenue for the Group derives both from the sale of smolt from contract with customer and sale of whole and processed salmon in the spot marked. It has not been made any forward sales contracts. The Group recognised revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the expected amount that the group is entitled to have for the goods. The sales price is based on available market price where the price will vary with both quality and size.
Normal credit term of the sales transactions is 30 days. If the delivered products has discrepancies compared to the agreed sales contract, cash refunds are given to the customer. Up until now, refunds are not material.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__21": { "value": "Government grants
Government grants are recognized when there is reasonable assurance that the grant will be received and when the Group is compliant with all conditions attached. When the grant relates to an expense item, it is recognized as income over the period that the costs it is intended to compensate are expensed. When the grant relates to an asset, it is deducted from the carrying amount of the asset - the grant is then recognized in profit or loss over the useful life of a depreciable asset by way of a reduced depreciation charge. Government grants are presented in the accompanying statements of profit and loss as other income. See note 16for further details.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__22-1": { "value": "Employee benefits
Liabilities for wages and salaries, including equity settled share based payments, non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees\u2019 services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Pensions
The Group offers a defined contribution plan to its employees and pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The Group has no further payment obligations once the contributions have been paid. Contributions are recognized as employee benefit expense when they are due and are included as part of salary and personnel costs in the statement of profit and loss. Prepaid contributions are recognized as an asset to the extent in which a cash refund or a reduction in the future payments is available.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__23": { "value": "Share based payments
The fair value of options granted under the scheme is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:
- including any market performance conditions (eg the entity\u2019s share price)
- excluding the impact of any service and non-market performance vesting conditions (eg profitability, sales growth targets and remaining an employee of the entity over a specified time period), and
- including the impact of any non-vesting conditions (eg the requirement for employees to save or holdings shares for a specific period of time).
Total fair value is expensed over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Information relating to the Groups's employee stock option scheme is set out in note 9.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__24-1": { "value": "Income Tax
The tax expense represents the sum of the tax currently payable and change in deferred tax.
Current tax and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Deferred tax benefit has not been recognised in the balanse sheet as the Group is in its start-up phase and does no have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__26-1": { "value": "Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized.
Current tax and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Deferred tax benefit has not been recognised in the balanse sheet as the Group is in its start-up phase and does no have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__28": { "value": "Leases
The Group assesses whether a legally enforceable contract is or contains a lease at the inception date of the contract. The assessment includes several criteria to be determined based on judgment that includes whether there is an identifiable asset in connection to the lease, whether the Group has the right to control the use of the identifiable asset, and whether the Group can obtain substantially all economic benefits from the identifiable asset.
The Group recognizes a right-of-use (\u201cROU\u201d) asset and a lease liability at the lease commencement date. The lease liability is calculated based on the present value of the contractual minimum lease payments using the incremental interest rate of the lease. The contractual minimum lease payments consist of fixed payments based on contractual amount at the time of conclusion of the agreement. The lease liability is subsequently measured at amortized cost under the effective interest rate during the
lease term and may also be adjusted to management\u2019s reassessment of future lease payments based on options exercised renegotiations, or changes of an index rate. The ROU asset is calculated based on the lease liability, plus initial direct costs towards the lease, and less any incentives granted by the lessor. The ROU asset is subsequently amortized under the straight-line method under the shorter of the lease term or the useful life of the underlying asset and is included as part of depreciation and amortization in the accompanying statements of other comprehensive income.
Leases that fall under the IFRS 16 short-term exception are recognized on a straight-line basis over the lease term.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__29": { "value": "Financial instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity intrument for another entitiy.
Interest rate swap
The Group has entered into interest rate swap to hedge its risk exposure to interest-bearing debt. Changes in fair value of those derivates is recognized as unrealized profit/loss under financial income/loss and allocated to, an unrealized profit/loss as other current receivables in the balance sheet.
Currency hedging
Salmon Evolution Sales AS make use of forward currency contracts to hedge against fluctations in exchange rates that arises during the period between when Salmon Evolution Sales enters into a sales contract and when the product is paid for. Changes in fair value of those contracts is recognized as unrealized profit/loss under finacial income/loss and to other current receivables in the balance sheet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__30": { "value": "Financial instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity intrument for another entitiy.
Interest rate swap
The Group has entered into interest rate swap to hedge its risk exposure to interest-bearing debt. Changes in fair value of those derivates is recognized as unrealized profit/loss under financial income/loss and allocated to, an unrealized profit/loss as other current receivables in the balance sheet.
Currency hedging
Salmon Evolution Sales AS make use of forward currency contracts to hedge against fluctations in exchange rates that arises during the period between when Salmon Evolution Sales enters into a sales contract and when the product is paid for. Changes in fair value of those contracts is recognized as unrealized profit/loss under finacial income/loss and to other current receivables in the balance sheet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__31": { "value": "Financial instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity intrument for another entitiy.
Interest rate swap
The Group has entered into interest rate swap to hedge its risk exposure to interest-bearing debt. Changes in fair value of those derivates is recognized as unrealized profit/loss under financial income/loss and allocated to, an unrealized profit/loss as other current receivables in the balance sheet.
Currency hedging
Salmon Evolution Sales AS make use of forward currency contracts to hedge against fluctations in exchange rates that arises during the period between when Salmon Evolution Sales enters into a sales contract and when the product is paid for. Changes in fair value of those contracts is recognized as unrealized profit/loss under finacial income/loss and to other current receivables in the balance sheet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__32": { "value": "Financial instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity intrument for another entitiy.
Interest rate swap
The Group has entered into interest rate swap to hedge its risk exposure to interest-bearing debt. Changes in fair value of those derivates is recognized as unrealized profit/loss under financial income/loss and allocated to, an unrealized profit/loss as other current receivables in the balance sheet.
Currency hedging
Salmon Evolution Sales AS make use of forward currency contracts to hedge against fluctations in exchange rates that arises during the period between when Salmon Evolution Sales enters into a sales contract and when the product is paid for. Changes in fair value of those contracts is recognized as unrealized profit/loss under finacial income/loss and to other current receivables in the balance sheet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__33": { "value": "Currency hedging
Salmon Evolution Sales AS make use of forward currency contracts to hedge against fluctations in exchange rates that arises during the period between when Salmon Evolution Sales enters into a sales contract and when the product is paid for. Changes in fair value of those contracts is recognized as unrealized profit/loss under finacial income/loss and to other current receivables in the balance sheet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__34-1": { "value": "Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and deposits held at call with financial institutions.
Statement of cash flows
The accomanying statements of cash flows are prepared in accordance with the indirect method
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__35": { "value": "Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and deposits held at call with financial institutions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__36": { "value": "Trade receivables, loans and other receivables
Trade receivables, loans and other receivables are recognized at invoiced amount and subsequently measured at amortized cost using the effective interest method, less provision for impairment. See note 3, 17and 18for further information about the Group\u2019s accounting for trade receivables, loans, other receivables and credit risk.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__37": { "value": "Property, plant & equipment
Property, plant, and equipment is measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and costs include expenditures that are directly attributable to the acquisition and placement of fixed assets in service. Costs of major replacements and renewals that substantially extend the economic life and functionality of fixed asset are capitalized. Costs associated with normal maintenance and repairs are expensed as incurred.
Assets are normally considered property, plant, and equipment if the useful economic life exceeds one year. Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset\u2019s historical cost. If a substantial part of an asset has an individual and different useful life, that portion is depreciated separately. The asset\u2019s residual value and useful life are evaluated annually. Gains
or losses arising from the disposal or retirement of an asset are determined as the difference between the sales proceeds and the carrying amount of the asset and recognized as part of other income in the accompanying statements of profit and loss.
Depreciaton is charged to expense when the property, plant or equipment is ready for intented use.The group considered the test- and verification phase for first phase of its Indre Har\u00f8y facility ready for intended use from April 2023, and started depreciations from that time. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction is not depreciated.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__39": { "value": "Property, plant & equipment
Property, plant, and equipment is measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and costs include expenditures that are directly attributable to the acquisition and placement of fixed assets in service. Costs of major replacements and renewals that substantially extend the economic life and functionality of fixed asset are capitalized. Costs associated with normal maintenance and repairs are expensed as incurred.
Assets are normally considered property, plant, and equipment if the useful economic life exceeds one year. Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset\u2019s historical cost. If a substantial part of an asset has an individual and different useful life, that portion is depreciated separately. The asset\u2019s residual value and useful life are evaluated annually. Gains
or losses arising from the disposal or retirement of an asset are determined as the difference between the sales proceeds and the carrying amount of the asset and recognized as part of other income in the accompanying statements of profit and loss.
Depreciaton is charged to expense when the property, plant or equipment is ready for intented use.The group considered the test- and verification phase for first phase of its Indre Har\u00f8y facility ready for intended use from April 2023, and started depreciations from that time. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction is not depreciated.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__40": { "value": "Property, plant & equipment
Property, plant, and equipment is measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and costs include expenditures that are directly attributable to the acquisition and placement of fixed assets in service. Costs of major replacements and renewals that substantially extend the economic life and functionality of fixed asset are capitalized. Costs associated with normal maintenance and repairs are expensed as incurred.
Assets are normally considered property, plant, and equipment if the useful economic life exceeds one year. Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset\u2019s historical cost. If a substantial part of an asset has an individual and different useful life, that portion is depreciated separately. The asset\u2019s residual value and useful life are evaluated annually. Gains
or losses arising from the disposal or retirement of an asset are determined as the difference between the sales proceeds and the carrying amount of the asset and recognized as part of other income in the accompanying statements of profit and loss.
Depreciaton is charged to expense when the property, plant or equipment is ready for intented use.The group considered the test- and verification phase for first phase of its Indre Har\u00f8y facility ready for intended use from April 2023, and started depreciations from that time. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction is not depreciated.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__38": { "value": "Depreciaton is charged to expense when the property, plant or equipment is ready for intented use.The group considered the test- and verification phase for first phase of its Indre Har\u00f8y facility ready for intended use from April 2023, and started depreciations from that time. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction is not depreciated. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__41": { "value": "Intangible assets
Expenses related to research activities are expensed as incurred. Expenses related to development activities are capitalized if the product or process is technically and commercially feasible, and the Group has adequate resources to complete the development.
Patents are capitalized and measured at cost less accumulated amortization and any accumulated impairment losses, if any.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__44": { "value": "Intangible assets
Expenses related to research activities are expensed as incurred. Expenses related to development activities are capitalized if the product or process is technically and commercially feasible, and the Group has adequate resources to complete the development.
Patents are capitalized and measured at cost less accumulated amortization and any accumulated impairment losses, if any.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__46": { "value": "Intangible assets
Expenses related to research activities are expensed as incurred. Expenses related to development activities are capitalized if the product or process is technically and commercially feasible, and the Group has adequate resources to complete the development.
Patents are capitalized and measured at cost less accumulated amortization and any accumulated impairment losses, if any.
Goodwill
When the Group assumes control over a separat business entity for a consideration that exceeds the fair value of the individual assets and liabilities assumed, the difference is entered as goodwill in the statement of financial position. Goodwill is not depreciated but is tested for impairment annually if there are indications that its value is lower than the carrying amount. See note 11for further information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__42": { "value": "Goodwill
When the Group assumes control over a separat business entity for a consideration that exceeds the fair value of the individual assets and liabilities assumed, the difference is entered as goodwill in the statement of financial position. Goodwill is not depreciated but is tested for impairment annually if there are indications that its value is lower than the carrying amount. See note 11for further information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__43": { "value": "Goodwill
When the Group assumes control over a separat business entity for a consideration that exceeds the fair value of the individual assets and liabilities assumed, the difference is entered as goodwill in the statement of financial position. Goodwill is not depreciated but is tested for impairment annually if there are indications that its value is lower than the carrying amount. See note 11for further information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__45": { "value": "Impairment
Management reviews long-lived assets for impairment annually, or more frequently, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. When such assets are identified, with certain indicators, an impairment test will be carried out.
If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset\u2019s carrying value to determine if an adjustment for impairment to such asset is necessary. The effect of any impairment would be to expense the difference between the fair value of such asset and it\u2019s carrying value. Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
Seenote 11for further description.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__47": { "value": "Biological assets
Biological assets are, in accordance with IAS 41, measured at fair value. For salmon in the grow-out facility, a present value model is applied to estimate the fair value. For roe, fry and smolt, historical cost is deemed to provide the best estimate of fair value, and hence applied. For further information, please refer to note 6.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBiologicalAssetsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__48": { "value": "Trade and Other Receivables
Trade receivables are initially recognized at amortized cost, less a provision for expected credit losses. Credit loss provisions are based on individual customer assessments over each reporting period and not on a 12-month period.
The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2024, not considered to be material.
In 2024 all produced fish was mainly sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__49": { "value": "Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings derecognized when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in consolidated statement of profit or loss within the line other financial items, net.
Borrowings are classified as current liabilities unless the Group has a right to defer settlement of the liability for at least 12 months after the reporting period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__50": { "value": "Borrowings cost
In accordance with IAS 23, the Group\u2019s loan agreements are subject to the following principles relating to borrowing costs:
General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__51": { "value": "Trade and Other Payables
Trade and other payables represent unpaid liabilities for goods and services provided to the Group prior to the end of the financial year and are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade and other payables are recognized initially at their fair value and are subsequently measured at amortized cost using the effective interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__56": { "value": "Note 3 - Financial risk and capital management
The Group\u2019s financial assets and liabilities include trade and other receivables, trade and other payables, cash, and borrowings necessary for its operations. The Group\u2019s risk management is carried out by the Group\u2019s finance department. The Group is exposed to market risk, credit risk, and liquidity risk.
Market risk
Market risk is linked to both Interest Rate- and Currency fluctations.
Interest Rate
The Group\u2019s interest rate risk relates primarily to borrowings from financial institutions with variable interest rates. Currently, the Company does not have any fixed-interest loans nor hedge programs to reduce this risk, thus the Company is exposed to changes in the interest rate. As at 31 December 2024, outstanding long term loans from credit instituions amounted to NOK 525.0 million and is subject to an interest rate of NIBOR 3M plus an agreed margin. The company also have drawn NOK 145.0 million of the overdraft facility.
This loan is part of of a financing package consisting of the following:
- NOK 525 million non-amortizing Term Loan Facility which will refinance the Company\u2019s existing NOK\u00a0525 million construction loan relating to phase 1 (the \u201cTerm Loan\u201d)
- NOK 250 million RCF Capex Facility available for general corporate purposes including Indre Har\u00f8y phase 2 capex (the \u201cRCF Facility\u201d)
- NOK 1,450 million Construction Facility available for financing of capex relating to phase 2 at Indre Har\u00f8y (the \u201cConstruction Facility\u201d)
Additionally, the Group has a NOK 150 million Overdraft Facility with Nordea.
The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin.
Incurred interest expenses and establishing fees during construction period are capitalized as part of assets under construction, see note 11 for further details.
In addition, the Group has a debt financing package of NOK 60 million in relation to Salmon Evolution Dale. As per 31 December 2024 NOK 58 million of the NOK 60 million debt financing package was drawn.
The financial reporting does not include any other compehensive income (OCI) effects, as the Group do not hold financial instruments measured at fair value through OCI, nor do we apply hedge accounting that would require recognition of gains or losses in OCI. All relevant financial instruments are either recognized through profit or loss or directly in equity as applicable.
Interest rate sensitivity (NOK thousands) | 2024 | 2023 |
Interest expense effect of a 1% increase on floating interest rate | 7 280 | 6 730 |
Foreign Currency
The Group\u2019s foreign currency risk relates to the Group\u2019s operating, investing, and financing activities denominated in a foreign currency. This includes the Group\u2019s revenues, expenses and capital expenditures. As of 31 December 2024 the Group had made some currency forward contracts to hedge the effect of fluctations in currency from the sales contracts. Besides these contracts the Group have no exposure to foreign exchange risk, and therefor not exposed to fluctuation in currencies. Value changes in forward contracts affect profit and loss.
The Group\u2019s presentation currency is Norwegian Kroner (\u201cNOK\u201d).
Credit risk
With respect to credit risk arising from the financial assets of the Group, which comprise cash and cash equivalents, and other receivables, the Group\u2019s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2024, not considered to be material.
In 2024 the majority of produced fish was sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance. In addition, the Group also sold part of one group of post smolt to an external customer from Salmon Evolution Norway AS.
Liquidity risk
A lack of liquidity will entail a risk that the Group will not be able to pay its obligations on maturity. Management monitors rolling forecasts of the Group\u2019s liquidity reserve (comprising cash and cash equivalents) on the basis of expected cash flows. The Group\u2019s business plan and growth strategy is capital intensive and the Group may be dependant upon future equity issues and/or debt financing in order to finance its current long-term plans.
The table below presents the maturities on the Group\u2019s financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.
31 December 2024 (NOK thousands) | Less than 3 months | 3-12 months | 1-5 years | > 5 years |
Borrowings | 300 | 159 388 | 571 543 | 0 |
Interest (Long term debt) | 15 325 | 45 974 | 245 194 | 0 |
Lease liabilities | 1 329 | 4 087 | 9 043 | 797 |
Trade payables | 193 384 | 0 | 0 | 0 |
Total financial liabilities | 210 338 | 209 448 | 825 780 | 797 |
31 December 2023 (NOK thousands) | Less than 3 months | 3-12months | 1-5 years | > 5 years |
Borrowings | 0 | 103 275 | 569 969 | 0 |
Interest (Long term debt) | 13 005 | 40 017 | 213 426 | 0 |
Lease liabilities | 1 088 | 3 263 | 8 189 | 491 |
Trade payables | 71 499 | 0 | 0 | 0 |
Total financial liabilities | 85 592 | 146 554 | 791 584 | 491 |
Trade receivables (NOK thousands) | 2024 | 2023 | ||
Trade receivables | 90 637 | 40 763 | ||
Provision for loss on claims | -115 | -267 | ||
Total financial liabilities | 90 522 | 40 496 |
Credit-insured share of trade receivables as of 31.12.2024 was TNOK 64,001
Financial instruments \u2013 assessment of fair value
The table below shows financial instruments at fair value according to valuation method. The different levels are defined as follows:
Level 1:Price listed in an active market for identical assets or liabilities
Level 2:Valuation is based on other observable inputs either directly or indirectly than listed price (used in level 1) for the asset or liability
Level 3:\tValuation based on inputs not derived from observable markets (non-observable assumptions)
31 December 2024 (NOK thousands) | ||||||
FVPL* | ||||||
Amortized cost | Fair value | Carrying amount | ||||
Level 1 | Level 2 | Level 3 | ||||
Financial assets: | ||||||
Trade receivables | 0 | 0 | 0 | 90 522 | 90 522 | 90 522 |
Financial derivatives | 0 | 13 643 | 0 | 0 | 13 643 | 13 643 |
Energy contract | 0 | 0 | 0 | 0 | 0 | 0 |
Other current receivables | 0 | 0 | 0 | 51 142 | 51 142 | 51 142 |
Cash and cash equivalents | 0 | 0 | 0 | 429 462 | 429 462 | 429 462 |
Total financial assets | 0 | 13 643 | 0 | 571 126 | 584 769 | 584 769 |
Financial liabilities: | ||||||
Deferred tax | 0 | 0 | 0 | 0 | 0 | 0 |
Long-term interets bearing debt | 0 | 0 | 0 | 569 100 | 569 100 | 569 100 |
Other long term liabilites | 0 | 0 | 0 | 3 643 | 3 643 | 3 643 |
Short-term interest bearing debt | 0 | 0 | 0 | 158 488 | 158 488 | 158 488 |
Trade payables | 0 | 0 | 0 | 193 384 | 193 384 | 193 384 |
Social security and other taxes | 0 | 0 | 0 | 7 495 | 7 495 | 7 495 |
Other current liabilities | 0 | 0 | 0 | 14 408 | 14 408 | 14 408 |
Total financial liabilities | 0 | 0 | 0 | 946 518 | 946 518 | 946 518 |
31 December 2023 (NOK thousands) | ||||||
FVPL* | ||||||
Amortized cost | Fair value | Carrying amount | ||||
Level 1 | Level 2 | Level 3 | ||||
Financial assets: | ||||||
Trade receivables | 0 | 0 | 0 | 40 496 | 40 496 | 40 496 |
Financial derivatives | 0 | 12 900 | 0 | 0 | 12 900 | 12 900 |
Energy contract | 0 | 0 | 0 | 0 | 0 | 0 |
Other current receivables | 0 | 0 | 0 | 31 121 | 31 121 | 31 121 |
Cash and cash equivalents | 0 | 0 | 0 | 386 396 | 386 396 | 386 396 |
Total financial assets | 0 | 12 900 | 0 | 458 013 | 470 913 | 470 913 |
Financial liabilities: | ||||||
Deferred tax | 0 | 0 | 0 | 0 | 0 | 0 |
Long-term interets bearing debt | 0 | 0 | 0 | 569 969 | 569 969 | 569 969 |
Other long term liabilites | 0 | 0 | 0 | 8 702 | 8 702 | 8 702 |
Short-term interest bearing debt | 0 | 0 | 0 | 103 275 | 103 275 | 103 275 |
Trade payables | 0 | 0 | 0 | 71 499 | 71 499 | 71 499 |
Social security and other taxes | 0 | 0 | 0 | 8 273 | 8 273 | 8 273 |
Other current liabilities | 0 | 0 | 0 | 14 635 | 14 635 | 14 635 |
Total financial liabilities | 0 | 0 | 0 | 776 353 | 776 353 | 776 353 |
*FVPL: Fair value through profit or loss |
Market risk
Market risk is linked to both Interest Rate- and Currency fluctations.
Interest Rate
The Group\u2019s interest rate risk relates primarily to borrowings from financial institutions with variable interest rates. Currently, the Company does not have any fixed-interest loans nor hedge programs to reduce this risk, thus the Company is exposed to changes in the interest rate. As at 31 December 2024, outstanding long term loans from credit instituions amounted to NOK 525.0 million and is subject to an interest rate of NIBOR 3M plus an agreed margin. The company also have drawn NOK 145.0 million of the overdraft facility.
This loan is part of of a financing package consisting of the following:
- NOK 525 million non-amortizing Term Loan Facility which will refinance the Company\u2019s existing NOK\u00a0525 million construction loan relating to phase 1 (the \u201cTerm Loan\u201d)
- NOK 250 million RCF Capex Facility available for general corporate purposes including Indre Har\u00f8y phase 2 capex (the \u201cRCF Facility\u201d)
- NOK 1,450 million Construction Facility available for financing of capex relating to phase 2 at Indre Har\u00f8y (the \u201cConstruction Facility\u201d)
Additionally, the Group has a NOK 150 million Overdraft Facility with Nordea.
The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin.
Incurred interest expenses and establishing fees during construction period are capitalized as part of assets under construction, see note 11 for further details.
In addition, the Group has a debt financing package of NOK 60 million in relation to Salmon Evolution Dale. As per 31 December 2024 NOK 58 million of the NOK 60 million debt financing package was drawn.
The financial reporting does not include any other compehensive income (OCI) effects, as the Group do not hold financial instruments measured at fair value through OCI, nor do we apply hedge accounting that would require recognition of gains or losses in OCI. All relevant financial instruments are either recognized through profit or loss or directly in equity as applicable.
Interest rate sensitivity (NOK thousands) | 2024 | 2023 |
Interest expense effect of a 1% increase on floating interest rate | 7 280 | 6 730 |
Foreign Currency
The Group\u2019s foreign currency risk relates to the Group\u2019s operating, investing, and financing activities denominated in a foreign currency. This includes the Group\u2019s revenues, expenses and capital expenditures. As of 31 December 2024 the Group had made some currency forward contracts to hedge the effect of fluctations in currency from the sales contracts. Besides these contracts the Group have no exposure to foreign exchange risk, and therefor not exposed to fluctuation in currencies. Value changes in forward contracts affect profit and loss.
The Group\u2019s presentation currency is Norwegian Kroner (\u201cNOK\u201d).
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__60": { "value": "Credit risk
With respect to credit risk arising from the financial assets of the Group, which comprise cash and cash equivalents, and other receivables, the Group\u2019s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2024, not considered to be material.
In 2024 the majority of produced fish was sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance. In addition, the Group also sold part of one group of post smolt to an external customer from Salmon Evolution Norway AS.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__61": { "value": "Liquidity risk
A lack of liquidity will entail a risk that the Group will not be able to pay its obligations on maturity. Management monitors rolling forecasts of the Group\u2019s liquidity reserve (comprising cash and cash equivalents) on the basis of expected cash flows. The Group\u2019s business plan and growth strategy is capital intensive and the Group may be dependant upon future equity issues and/or debt financing in order to finance its current long-term plans.
The table below presents the maturities on the Group\u2019s financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.
31 December 2024 (NOK thousands) | Less than 3 months | 3-12 months | 1-5 years | > 5 years |
Borrowings | 300 | 159 388 | 571 543 | 0 |
Interest (Long term debt) | 15 325 | 45 974 | 245 194 | 0 |
Lease liabilities | 1 329 | 4 087 | 9 043 | 797 |
Trade payables | 193 384 | 0 | 0 | 0 |
Total financial liabilities | 210 338 | 209 448 | 825 780 | 797 |
31 December 2023 (NOK thousands) | Less than 3 months | 3-12months | 1-5 years | > 5 years |
Borrowings | 0 | 103 275 | 569 969 | 0 |
Interest (Long term debt) | 13 005 | 40 017 | 213 426 | 0 |
Lease liabilities | 1 088 | 3 263 | 8 189 | 491 |
Trade payables | 71 499 | 0 | 0 | 0 |
Total financial liabilities | 85 592 | 146 554 | 791 584 | 491 |
Trade receivables (NOK thousands) | 2024 | 2023 | ||
Trade receivables | 90 637 | 40 763 | ||
Provision for loss on claims | -115 | -267 | ||
Total financial liabilities | 90 522 | 40 496 |
Credit-insured share of trade receivables as of 31.12.2024 was TNOK 64,001
Financial instruments \u2013 assessment of fair value
The table below shows financial instruments at fair value according to valuation method. The different levels are defined as follows:
Level 1:Price listed in an active market for identical assets or liabilities
Level 2:Valuation is based on other observable inputs either directly or indirectly than listed price (used in level 1) for the asset or liability
Level 3:\tValuation based on inputs not derived from observable markets (non-observable assumptions)
31 December 2024 (NOK thousands) | ||||||
FVPL* | ||||||
Amortized cost | Fair value | Carrying amount | ||||
Level 1 | Level 2 | Level 3 | ||||
Financial assets: | ||||||
Trade receivables | 0 | 0 | 0 | 90 522 | 90 522 | 90 522 |
Financial derivatives | 0 | 13 643 | 0 | 0 | 13 643 | 13 643 |
Energy contract | 0 | 0 | 0 | 0 | 0 | 0 |
Other current receivables | 0 | 0 | 0 | 51 142 | 51 142 | 51 142 |
Cash and cash equivalents | 0 | 0 | 0 | 429 462 | 429 462 | 429 462 |
Total financial assets | 0 | 13 643 | 0 | 571 126 | 584 769 | 584 769 |
Financial liabilities: | ||||||
Deferred tax | 0 | 0 | 0 | 0 | 0 | 0 |
Long-term interets bearing debt | 0 | 0 | 0 | 569 100 | 569 100 | 569 100 |
Other long term liabilites | 0 | 0 | 0 | 3 643 | 3 643 | 3 643 |
Short-term interest bearing debt | 0 | 0 | 0 | 158 488 | 158 488 | 158 488 |
Trade payables | 0 | 0 | 0 | 193 384 | 193 384 | 193 384 |
Social security and other taxes | 0 | 0 | 0 | 7 495 | 7 495 | 7 495 |
Other current liabilities | 0 | 0 | 0 | 14 408 | 14 408 | 14 408 |
Total financial liabilities | 0 | 0 | 0 | 946 518 | 946 518 | 946 518 |
31 December 2023 (NOK thousands) | ||||||
FVPL* | ||||||
Amortized cost | Fair value | Carrying amount | ||||
Level 1 | Level 2 | Level 3 | ||||
Financial assets: | ||||||
Trade receivables | 0 | 0 | 0 | 40 496 | 40 496 | 40 496 |
Financial derivatives | 0 | 12 900 | 0 | 0 | 12 900 | 12 900 |
Energy contract | 0 | 0 | 0 | 0 | 0 | 0 |
Other current receivables | 0 | 0 | 0 | 31 121 | 31 121 | 31 121 |
Cash and cash equivalents | 0 | 0 | 0 | 386 396 | 386 396 | 386 396 |
Total financial assets | 0 | 12 900 | 0 | 458 013 | 470 913 | 470 913 |
Financial liabilities: | ||||||
Deferred tax | 0 | 0 | 0 | 0 | 0 | 0 |
Long-term interets bearing debt | 0 | 0 | 0 | 569 969 | 569 969 | 569 969 |
Other long term liabilites | 0 | 0 | 0 | 8 702 | 8 702 | 8 702 |
Short-term interest bearing debt | 0 | 0 | 0 | 103 275 | 103 275 | 103 275 |
Trade payables | 0 | 0 | 0 | 71 499 | 71 499 | 71 499 |
Social security and other taxes | 0 | 0 | 0 | 8 273 | 8 273 | 8 273 |
Other current liabilities | 0 | 0 | 0 | 14 635 | 14 635 | 14 635 |
Total financial liabilities | 0 | 0 | 0 | 776 353 | 776 353 | 776 353 |
*FVPL: Fair value through profit or loss |
Financial instruments \u2013 assessment of fair value
The table below shows financial instruments at fair value according to valuation method. The different levels are defined as follows:
Level 1:Price listed in an active market for identical assets or liabilities
Level 2:Valuation is based on other observable inputs either directly or indirectly than listed price (used in level 1) for the asset or liability
Level 3:\tValuation based on inputs not derived from observable markets (non-observable assumptions)
31 December 2024 (NOK thousands) | ||||||
FVPL* | ||||||
Amortized cost | Fair value | Carrying amount | ||||
Level 1 | Level 2 | Level 3 | ||||
Financial assets: | ||||||
Trade receivables | 0 | 0 | 0 | 90 522 | 90 522 | 90 522 |
Financial derivatives | 0 | 13 643 | 0 | 0 | 13 643 | 13 643 |
Energy contract | 0 | 0 | 0 | 0 | 0 | 0 |
Other current receivables | 0 | 0 | 0 | 51 142 | 51 142 | 51 142 |
Cash and cash equivalents | 0 | 0 | 0 | 429 462 | 429 462 | 429 462 |
Total financial assets | 0 | 13 643 | 0 | 571 126 | 584 769 | 584 769 |
Financial liabilities: | ||||||
Deferred tax | 0 | 0 | 0 | 0 | 0 | 0 |
Long-term interets bearing debt | 0 | 0 | 0 | 569 100 | 569 100 | 569 100 |
Other long term liabilites | 0 | 0 | 0 | 3 643 | 3 643 | 3 643 |
Short-term interest bearing debt | 0 | 0 | 0 | 158 488 | 158 488 | 158 488 |
Trade payables | 0 | 0 | 0 | 193 384 | 193 384 | 193 384 |
Social security and other taxes | 0 | 0 | 0 | 7 495 | 7 495 | 7 495 |
Other current liabilities | 0 | 0 | 0 | 14 408 | 14 408 | 14 408 |
Total financial liabilities | 0 | 0 | 0 | 946 518 | 946 518 | 946 518 |
31 December 2023 (NOK thousands) | ||||||
FVPL* | ||||||
Amortized cost | Fair value | Carrying amount | ||||
Level 1 | Level 2 | Level 3 | ||||
Financial assets: | ||||||
Trade receivables | 0 | 0 | 0 | 40 496 | 40 496 | 40 496 |
Financial derivatives | 0 | 12 900 | 0 | 0 | 12 900 | 12 900 |
Energy contract | 0 | 0 | 0 | 0 | 0 | 0 |
Other current receivables | 0 | 0 | 0 | 31 121 | 31 121 | 31 121 |
Cash and cash equivalents | 0 | 0 | 0 | 386 396 | 386 396 | 386 396 |
Total financial assets | 0 | 12 900 | 0 | 458 013 | 470 913 | 470 913 |
Financial liabilities: | ||||||
Deferred tax | 0 | 0 | 0 | 0 | 0 | 0 |
Long-term interets bearing debt | 0 | 0 | 0 | 569 969 | 569 969 | 569 969 |
Other long term liabilites | 0 | 0 | 0 | 8 702 | 8 702 | 8 702 |
Short-term interest bearing debt | 0 | 0 | 0 | 103 275 | 103 275 | 103 275 |
Trade payables | 0 | 0 | 0 | 71 499 | 71 499 | 71 499 |
Social security and other taxes | 0 | 0 | 0 | 8 273 | 8 273 | 8 273 |
Other current liabilities | 0 | 0 | 0 | 14 635 | 14 635 | 14 635 |
Total financial liabilities | 0 | 0 | 0 | 776 353 | 776 353 | 776 353 |
*FVPL: Fair value through profit or loss |
Note 4 - Operating revenue and other income
Operating revenue and other income (NOK thousands) | 2024 | 2023 |
Sales revenues from farming | 467 742 | 153 325 |
Smolt | 0 | 0 |
Postsmolt | 11 305 | 0 |
Atlantic Salmon (hog) | 451 398 | 152 767 |
Atlantic Salmon (trimmed) | 5 039 | 558 |
Other income | 3 831 | 15 099 |
Total operating revenue and other income | 471 573 | 168 424 |
Operating revenue in the Group for 2024 mainly derives sales of farmed salmon from Salmon Evolution Sales AS (who bought the salmon from Salmon Evolution Norway AS). Salmon Evolution Sales AS has in 2024 sold 4 803 tonnes Atlantic Salmon, and the distribution is as illustrated below. Additinally, 104 tonnes postsmolt were sold directly from Salmon Evolution Norway AS.
Other income in 2024 was mostly related services to K Smart Farming Co., Ltd. in South Korea.
2024Sales quantity | 2023Sales quantity | |||
Destination | (tonnes) | % | (tonnes) | % |
Norway | 2 642 | 55 % | 1 306 | 70 % |
EU ex. Norway | 2 107 | 44 % | 557 | 30 % |
Asia | 54 | 1 % | 2 | 0 % |
Total | 4 803 | 100 % | 1 865 | 100 % |
Sales renevue atlantic salmon (NOK thousands) | 2024 | 2023 | ||
Norway | 245 786 | 105 743 | ||
EU ex. Norway | 204 057 | 47 379 | ||
Asia | 6 594 | 203 | ||
Total | 456 437 | 153 325 |
Our land-based salmon have been distributed through Salmon Evolution Sales to a vast number of customers, across different segments and channels. The initial batch has been launched locally, nationally in Norway and internationally, in close collaboration with our partners, and has proven to be meet the highest standards, for both raw, heated and smoked products.
Note 4 - Operating revenue and other income
Operating revenue and other income (NOK thousands) | 2024 | 2023 |
Sales revenues from farming | 467 742 | 153 325 |
Smolt | 0 | 0 |
Postsmolt | 11 305 | 0 |
Atlantic Salmon (hog) | 451 398 | 152 767 |
Atlantic Salmon (trimmed) | 5 039 | 558 |
Other income | 3 831 | 15 099 |
Total operating revenue and other income | 471 573 | 168 424 |
Operating revenue in the Group for 2024 mainly derives sales of farmed salmon from Salmon Evolution Sales AS (who bought the salmon from Salmon Evolution Norway AS). Salmon Evolution Sales AS has in 2024 sold 4 803 tonnes Atlantic Salmon, and the distribution is as illustrated below. Additinally, 104 tonnes postsmolt were sold directly from Salmon Evolution Norway AS.
Other income in 2024 was mostly related services to K Smart Farming Co., Ltd. in South Korea.
2024Sales quantity | 2023Sales quantity | |||
Destination | (tonnes) | % | (tonnes) | % |
Norway | 2 642 | 55 % | 1 306 | 70 % |
EU ex. Norway | 2 107 | 44 % | 557 | 30 % |
Asia | 54 | 1 % | 2 | 0 % |
Total | 4 803 | 100 % | 1 865 | 100 % |
Sales renevue atlantic salmon (NOK thousands) | 2024 | 2023 | ||
Norway | 245 786 | 105 743 | ||
EU ex. Norway | 204 057 | 47 379 | ||
Asia | 6 594 | 203 | ||
Total | 456 437 | 153 325 |
Our land-based salmon have been distributed through Salmon Evolution Sales to a vast number of customers, across different segments and channels. The initial batch has been launched locally, nationally in Norway and internationally, in close collaboration with our partners, and has proven to be meet the highest standards, for both raw, heated and smoked products.
Note 5 - Segment
Operating segments are reported in a manner consistent with internal reporting to the chief operating decision-maker, which is responsible for allocating resources and assessing performance. The chief operating decision-maker has been identified as the Group management. The Group has implemented segment reporting which consists of production of farmed salmon in Norway (Farming Norway), other activities (Other), and eliminations. The segment performance is monitored to assess performance and profitability at a strategic level.
Farming Norway consists of Salmon Evolution Norway AS (grow-out facility), Salmon Evolution Dale AS (smolt facility) and Salmon Evolution Sales AS. Additionally a portion of the Group overhead costs is allocated to the segment.
Other consist of both revenue and costs not attributable to the farming segment.
The same accounting principles as described in Note 1have been applied for the segment reporting, where internal transactions are entered into under normal commercial terms and conditions.
Sales revenue from contracts with customers comes from both Continental Europe, UK, USA, Asia and other markets.
FY 2024 (NOK thousands) | Farming Norway | Other | Eliminations | Group |
External revenue | 467 742 | 3 831 | 0 | 471 573 |
Internal revenue | 0 | 24 329 | -24 329 | 0 |
Operating revenue | 467 742 | 28 160 | -24 329 | 471 573 |
Operational EBITDA | 112 425 | -41 010 | 0 | 71 415 |
Operational EBIT | 37 884 | -44 509 | 1 898 | -4 727 |
Fair value adjustment of biomass | -10 498 | |||
Net financial | -32 180 | |||
Profit/loss before tax | -47 405 | |||
Harvested volum (tonnes, HOG) | 4 891 | 4 891 | ||
Operational EBITDA/kg (NOK) | 23,0 | 14,6 | ||
Operational EBIT/kg (NOK) | 7,7 | -1,0 | ||
Total assets | 2 371 935 | 33 086 | 0 | 2 405 021 |
FY 2023 (NOK thousands) | Farming Norway | Other | Eliminations | Group |
External revenue | 158 248 | 10 176 | 0 | 168 424 |
Internal revenue | 0 | 17 388 | -17 388 | 0 |
Operating revenue | 158 248 | 27 564 | -17 388 | 168 424 |
Operational EBITDA | -23 214 | -60 737 | 0 | -83 950 |
Operational EBIT | -67 932 | -63 855 | 1 107 | -130 680 |
Fair value adjustment of biomass | 20 149 | |||
Net financial | -35 241 | |||
Profit/loss before tax | -145 773 | |||
Harvested volum (tonnes, HOG) | 1 874 | 1 874 | ||
Operational EBITDA/kg (NOK) | N/A | N/A | ||
Operational EBIT/kg (NOK) | N/A | N/A | ||
Total assets | 2 044 341 | 14 980 | -1 899 | 2 057 422 |
Note 6 - Biological assets and inventory
Biological assets are, in accordance with IAS 41, measured at fair value. For salmon in the grow-out facility, a present value model is applied to estimate the fair value. For roe, fry and smolt, historical cost is deemed to provide the best estimate of fair value, and hence applied.
The fair value of fish in the grow-out facility is calculated by multiplying the estimated biomass at the time of harvest with the estimated sales price at the same time and deducted for estimated costs to sell. For fish not ready for harvest, remaining production costs to grow the fish to harvest weight are deducted. The cash flow is further discounted by a discount rate considering both risk adjustment and time value.
The Group considers that fish greater than 4.6 kg is ready for harvest (about 3.8 kg gutted weight), and such fish is thus classified as harvestable fish. Fish that have not achieved this weight are classified as non-harvestable.
In the event of incident-based mortality, all costs allocated to fish affected by incident-based mortality will be deducted from the book value of the inventory.
BOOK VALUE OF INVENTORY (NOK thousands) | FY 2024 | FY 2023 |
Equipment | 6 245 | 2 667 |
Raw materials | 6 621 | 4 433 |
Biological assets | 171 004 | 153 790 |
Finished goods | 0 | 1 270 |
Total | 183 870 | 162 159 |
Biomass volume
BIOLOGICAL ASSETS (Tonnes) | FY 2024 | FY 2023 |
Biological assets beginning of period | 2 204 | 733 |
Biological assets end of period | 2 027 | 2 204 |
BIOLOGICAL ASSETS (NOK thousands) | FY 2024 | FY 2023 |
Biological assets beginning of period | 153 790 | 58 927 |
Increase due to production | 371 472 | 218 496 |
Reduction due to harvest/sale | -334 727 | -130 880 |
Reduction due to incident based mortality | -9 473 | -12 901 |
Fair value adjustment beginning of period | -31 889 | -11 740 |
Fair value adjustment end of period | 21 391 | 31 889 |
Biological assets end of period | 171 004 | 153 790 |
The estimated biomass volume is based on the actual number of individuals in the grow-out departments on the balance sheet date, adjusted for projected mortality up to harvest time and multiplied with the estimated harvest weight per individual at harvest time.
The estimated sales price for the fish in the grow-out facility is based on forward prices from Sisalmoni with relevant adjustments. The net sales value is adjusted for expected quality differences and harvesting, logistics and sales expenses.
The Group is still in a ramp-up phase for the grow-out facility at Indre Har\u00f8y, and hence the facility\u2019s production capacity is not fully utilized. Cost of production is therefore adjusted for unutilized production capacity. Year-to-date 2024 this adjustment amounted to NOK 28.6 million (compared to NOK 41.3 million in 2023) which has been expensed directly in the profit and loss statement.
Sensitivity analysis of biomass
This sensitivity analysis evaluates the impact of changes in key estimates on the fair value. It highlights how variations in factors such as sales prices, biomass volume, discount rate and superior share could affect the fair value measurement, providing a clearer understanding of potential financial impacts.
Sensitivity analysis of biomass (NOK thousands) | 2024 | 2023 |
Change in sales price +1 NOK/kg | 3 645 | 4 400 |
Change in sales price -1 NOK/kg | -3 645 | -4 400 |
Changes in biomass volume -1% kg | -2 295 | -3 500 |
Changes in biomass volume +1% kg | 2 295 | 3 500 |
Change in discount rate +1% | -400 | -300 |
Change in discount rate -1% | 400 | 300 |
Change in superior share +1% | 545 | 655 |
Change in superior share -1% | -545 | -655 |
Note 7 - Cost of materials and change in inventory
(NOK thousands) | 2024 | 2023 |
Cost of materials and change in inventory | -171 330 | -47 704 |
Composition COGS: (NOK thousands) | 2024 | 2023 |
Raw material cost | -200 933 | -126 180 |
Inventory change | 29 603 | 78 476 |
Sum | -171 330 | -47 704 |
Composition inventory change: (NOK thousands) | 2024 | 2023 |
Change due to production | 371 472 | 218 496 |
Change due to harvest/sale | -336 093 | -130 880 |
Change due to incident based mortality | -6 167 | -12 901 |
Change inventory raw material | 391 | 3 762 |
Sum | 29 603 | 78 476 |
Composition - change due to production: (NOK thousands) | 2024 | 2023 |
Raw material cost | 200 542 | 122 419 |
Salaries | 34 340 | 17 670 |
Energy cost | 48 330 | 29 567 |
Depreciations | 55 758 | 22 778 |
Other operating expenses | 32 503 | 26 062 |
Sum | 371 472 | 218 496 |
Inventory (NOK thousands) | Feed | Smolt | Salmon | Frozen products | Total at cost | Fair value adjustment |
Value 31.12.2023 | 4 433 | 16 018 | 105 882 | 1 270 | 127 603 | 31 889 |
Change | 2 188 | 7 413 | 20 300 | -1 270 | 28 631 | -10 498 |
Value 31.12.2024 | 6 621 | 23 431 | 126 182 | 0 | 156 234 | 21 391 |
Note 16 - Government grants
The Group has received a commitment from the The Norwegian Resarch Council (Norsk Forskningsr\u00e5d) for two projects started in 2023. The grant is given for one period of three years and is related to the tax incentive scheme SkatteFUNN which is a government program designed to stimulate research and development (R&D) in Norwegian trade and industry. The receivable is accounted for as a short-term receivable from the tax authorities. In the financial accounts the receivable related to the grant is netted partly against the related asset\u2019s acquisition cost, partly against expenses recognised in the income statement. Grants for 2024 amounted to NOK 2,258 thousand (NOK 2,037 thousands in 2023).
SkatteFUNN (NOK thousands) | Expense | Capitalized | FY 2024 |
Systems for data input, handling and analytics | 839 | 6 107 | 6 946 |
Grants | -159 | -1 160 | -1 320 |
Landbased Salmon | 1 828 | 1 822 | 3 650 |
Grants | -347 | -346 | -694 |
Light in the fry phase | 817 | 469 | 1 286 |
Grants | -155 | -89 | -244 |
Total SkatteFUNN project costs | 2 823 | 6 803 | 9 624 |
SkatteFUNN (NOK thousands) | Expense | Capitalized | FY 2024 |
Systems for data input, handling and analytics | 2 514 | 4 378 | 6 892 |
Grants | -768 | -542 | -1 310 |
Landbased Salmon | 2 278 | 1 551 | 3 829 |
Grants | -505 | -222 | -727 |
Total SkatteFUNN project costs | 3 519 | 5 165 | 8 684 |
Further, the Group has received a comittment from Fisheries and Aquaculture Industry Research Funding (FHF) for the project \u201c Realization of the potential sensor data for improved efficiency and fish welfare. In the financial accounts, these grants are recognised as income in the P&L. Grants for 2024 amounted to NOK 1,673 million.
Other grants received (NOK thousands) | 2024 | 2023 |
RFF | - | 500 |
FHF | 1 673 | 1 755 |
Total grants received | 1 673 | 2 255 |
BOOK VALUE OF INVENTORY (NOK thousands) | FY 2024 | FY 2023 |
Equipment | 6 245 | 2 667 |
Raw materials | 6 621 | 4 433 |
Biological assets | 171 004 | 153 790 |
Finished goods | 0 | 1 270 |
Total | 183 870 | 162 159 |
Note 7 - Cost of materials and change in inventory
(NOK thousands) | 2024 | 2023 |
Cost of materials and change in inventory | -171 330 | -47 704 |
Composition COGS: (NOK thousands) | 2024 | 2023 |
Raw material cost | -200 933 | -126 180 |
Inventory change | 29 603 | 78 476 |
Sum | -171 330 | -47 704 |
Composition inventory change: (NOK thousands) | 2024 | 2023 |
Change due to production | 371 472 | 218 496 |
Change due to harvest/sale | -336 093 | -130 880 |
Change due to incident based mortality | -6 167 | -12 901 |
Change inventory raw material | 391 | 3 762 |
Sum | 29 603 | 78 476 |
Composition - change due to production: (NOK thousands) | 2024 | 2023 |
Raw material cost | 200 542 | 122 419 |
Salaries | 34 340 | 17 670 |
Energy cost | 48 330 | 29 567 |
Depreciations | 55 758 | 22 778 |
Other operating expenses | 32 503 | 26 062 |
Sum | 371 472 | 218 496 |
Inventory (NOK thousands) | Feed | Smolt | Salmon | Frozen products | Total at cost | Fair value adjustment |
Value 31.12.2023 | 4 433 | 16 018 | 105 882 | 1 270 | 127 603 | 31 889 |
Change | 2 188 | 7 413 | 20 300 | -1 270 | 28 631 | -10 498 |
Value 31.12.2024 | 6 621 | 23 431 | 126 182 | 0 | 156 234 | 21 391 |
Note 8 - Personnel expenses, remuneration to the board and auditor's fee
Personnel expenses (NOK thousands) | 2024 | 2023 |
Salaries | 76 550 | 67 102 |
Social security | 12 256 | 11 054 |
Pensions | 4 350 | 3 458 |
Other benefits | 1 593 | 5 507 |
Share-based payments | 726 | 2 441 |
Gross personnel expenses | 95 475 | 89 562 |
- Capitalized costs | -27 428 | -13 511 |
Total personnel expenses recognized in P&L | 68 046 | 76 052 |
Number of full-time employment equivalents | 81 | 69 |
Note 8 - Personnel expenses, remuneration to the board and auditor's fee
Personnel expenses (NOK thousands) | 2024 | 2023 |
Salaries | 76 550 | 67 102 |
Social security | 12 256 | 11 054 |
Pensions | 4 350 | 3 458 |
Other benefits | 1 593 | 5 507 |
Share-based payments | 726 | 2 441 |
Gross personnel expenses | 95 475 | 89 562 |
- Capitalized costs | -27 428 | -13 511 |
Total personnel expenses recognized in P&L | 68 046 | 76 052 |
Number of full-time employment equivalents | 81 | 69 |
During the ordinary course of business, the Group capitalizes portions of total salary and personnel costs towards assets under construction. In addition, a portion of the salaries related to the production are recognised as part of the biomass value in the balance sheet. Salary allocated to biomass in 2024 was NOK 34.4 million (NOK 17,7 million in 2023).
Norwegian entities are obligated to establish a mandatory company pension. This obligation is fulfilled under the current pension plan. No loans or guarantees have been given to the members of the board of directors or executive management.
Remuneration and compensation to executive management and board of directors (NOK thousands) | 2024 | 2023 |
Salaries and other short-term employee benefits | 14 276 | 10 804 |
Share-based payments | 313 | 2 210 |
Remuneration and compensation to members of the board | 2 725 | 2 696 |
For personnel expenses and remuneration to the board see our remuneration report for 2024, published on our website salmonevolution.no.
Auditor\u2019s remuneration (NOK thousands) | 2024 | 2023 |
Statutory audit | 1423 | 1052 |
Service in relation to tax return | 0 | 17 |
Tax advise | 0 | 0 |
Service in relation to annual accounts | 0 | 0 |
Other services | 316 | 87 |
Total | 1 739 | 1 156 |
Note 9 - Share based payments
In 2023 the Board of directors granted a tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 8.30. The issued options vest 50% after year one, and 50% after year two. The options were granted on 1 June for executive management and 7 July for key employees. 50% of the options can be exercised at earliest, 12 months after the grant date. The remaing 50% of the options can be exercised at earliest, 24 months after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months.
Furthermore, in 2024 the Board of directors granted another tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 7.50. The options were granted on 18 September for both executive management and key employees. The issued options vest 1/3 after year one, 1/3 after year two and 1/3 after year three. Further, 1/3 of the options can be exercised at earliest 12 months, 1/3 of of the options can be exercised after 24 month, and 1/3 of the options can be exercised after 36 moths, after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months.
The fair value of the options is set on the grant date and is expensed over its lifetime. The fair value of the options has been calculated using the adjusted Black & Scholes option-pricing model, which takes into account the exercise price, the term of the option, the share price at the grant date, expected price volatility of the underlying share, expected dividend and risk-free rates. Given the recent listing and lack of historical price and volatility data, the expected volatility is based on historical volatility for a selection of comparable companies listed on Oslo Stock Exchange (\u201cOslo B\u00f8rs\u201d). The risk-free interest rate is set to equal the interest on Norwegian government bonds with the same maturity as the option. Average key assumptions are listed below.
Outstanding options (NOK thousands) | 2024 | 2023 |
Outstanding options 1 January | 7 060 | 5 150 |
Options granted | 3 880 | 1 910 |
Options exercised | 0 | 0 |
Options forfeited | 0 | 0 |
Outstanding options at end of period | 10 940 | 7 060 |
(NOK thousands) | 2024 | 2023 | |||
Charges to income statement | 696 | 2 438 | |||
Charges to Asset under Construction | 28 | 0 | |||
Total charges | 725 | 2 438 | |||
Key assumptions | 2024 | 2023 | |||
Average fair value (NOK) | 1,10 | 0,83 | |||
Average exercise price (NOK) | 7,50 | 8,30 | |||
Weighted expected average life (in years) | 5,00 | 3,21 | |||
Estimated dividend per share (NOK) | 0,00 | 0,00 | |||
Expected average volatility | 26,9 % | 19,6 % | |||
Risk-free rate | 3,62 % | 3,31 % | |||
Group management have the following holdings (NOK thousands) | Holding 01.01 | Awarded | Exercised | Forfeitet | Holding 31.12 |
Trond H\u00e5kon Schaug-Pettersen (CEO) | 2 600 | 1 000 | 0 | 0 | 3 600 |
Ingjarl Skarv\u00f8y (COO) | 750 | 300 | 0 | 0 | 1 050 |
Kamilla Mordal Holo (Project Director) | 750 | 300 | 0 | 0 | 1 050 |
Odd Frode Roaldsnes (CCO) | 750 | 300 | 0 | 0 | 1 050 |
Trond Vadset Veibust (CFO) | 500 | 500 | 0 | 0 | 1 000 |
Henriette Nordstrand (Technical Director) | 125 | 150 | 0 | 0 | 275 |
Tore-Jacob Reite (Director Strategic Projects) | 125 | 100 | 0 | 0 | 225 |
Total | 5 600 | 2 650 | 0 | 0 | 8 250 |
Note 10 - Other operating expenses
Other operating expenses (NOK thousands) | 2024 | 2023 |
Cost of premises (not defined as RoU) | 5 968 | 3 506 |
Rented equipment | 6 900 | 5 565 |
Insurance | 5 533 | 5 425 |
Consultancy fees | 10 920 | 24 859 |
Electrisity | 48 287 | 29 428 |
Other operating expenses | 41 329 | 26 201 |
Other administrative expenses | 41 845 | 33 635 |
Total other operating expenses | 160 781 | 128 619 |
Note 8 - Personnel expenses, remuneration to the board and auditor's fee
Personnel expenses (NOK thousands) | 2024 | 2023 |
Salaries | 76 550 | 67 102 |
Social security | 12 256 | 11 054 |
Pensions | 4 350 | 3 458 |
Other benefits | 1 593 | 5 507 |
Share-based payments | 726 | 2 441 |
Gross personnel expenses | 95 475 | 89 562 |
- Capitalized costs | -27 428 | -13 511 |
Total personnel expenses recognized in P&L | 68 046 | 76 052 |
Number of full-time employment equivalents | 81 | 69 |
During the ordinary course of business, the Group capitalizes portions of total salary and personnel costs towards assets under construction. In addition, a portion of the salaries related to the production are recognised as part of the biomass value in the balance sheet. Salary allocated to biomass in 2024 was NOK 34.4 million (NOK 17,7 million in 2023).
Norwegian entities are obligated to establish a mandatory company pension. This obligation is fulfilled under the current pension plan. No loans or guarantees have been given to the members of the board of directors or executive management.
Remuneration and compensation to executive management and board of directors (NOK thousands) | 2024 | 2023 |
Salaries and other short-term employee benefits | 14 276 | 10 804 |
Share-based payments | 313 | 2 210 |
Remuneration and compensation to members of the board | 2 725 | 2 696 |
For personnel expenses and remuneration to the board see our remuneration report for 2024, published on our website salmonevolution.no.
Auditor\u2019s remuneration (NOK thousands) | 2024 | 2023 |
Statutory audit | 1423 | 1052 |
Service in relation to tax return | 0 | 17 |
Tax advise | 0 | 0 |
Service in relation to annual accounts | 0 | 0 |
Other services | 316 | 87 |
Total | 1 739 | 1 156 |
Auditor\u2019s remuneration (NOK thousands) | 2024 | 2023 |
Statutory audit | 1423 | 1052 |
Service in relation to tax return | 0 | 17 |
Tax advise | 0 | 0 |
Service in relation to annual accounts | 0 | 0 |
Other services | 316 | 87 |
Total | 1 739 | 1 156 |
Note 9 - Share based payments
In 2023 the Board of directors granted a tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 8.30. The issued options vest 50% after year one, and 50% after year two. The options were granted on 1 June for executive management and 7 July for key employees. 50% of the options can be exercised at earliest, 12 months after the grant date. The remaing 50% of the options can be exercised at earliest, 24 months after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months.
Furthermore, in 2024 the Board of directors granted another tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 7.50. The options were granted on 18 September for both executive management and key employees. The issued options vest 1/3 after year one, 1/3 after year two and 1/3 after year three. Further, 1/3 of the options can be exercised at earliest 12 months, 1/3 of of the options can be exercised after 24 month, and 1/3 of the options can be exercised after 36 moths, after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months.
The fair value of the options is set on the grant date and is expensed over its lifetime. The fair value of the options has been calculated using the adjusted Black & Scholes option-pricing model, which takes into account the exercise price, the term of the option, the share price at the grant date, expected price volatility of the underlying share, expected dividend and risk-free rates. Given the recent listing and lack of historical price and volatility data, the expected volatility is based on historical volatility for a selection of comparable companies listed on Oslo Stock Exchange (\u201cOslo B\u00f8rs\u201d). The risk-free interest rate is set to equal the interest on Norwegian government bonds with the same maturity as the option. Average key assumptions are listed below.
Outstanding options (NOK thousands) | 2024 | 2023 |
Outstanding options 1 January | 7 060 | 5 150 |
Options granted | 3 880 | 1 910 |
Options exercised | 0 | 0 |
Options forfeited | 0 | 0 |
Outstanding options at end of period | 10 940 | 7 060 |
(NOK thousands) | 2024 | 2023 | |||
Charges to income statement | 696 | 2 438 | |||
Charges to Asset under Construction | 28 | 0 | |||
Total charges | 725 | 2 438 | |||
Key assumptions | 2024 | 2023 | |||
Average fair value (NOK) | 1,10 | 0,83 | |||
Average exercise price (NOK) | 7,50 | 8,30 | |||
Weighted expected average life (in years) | 5,00 | 3,21 | |||
Estimated dividend per share (NOK) | 0,00 | 0,00 | |||
Expected average volatility | 26,9 % | 19,6 % | |||
Risk-free rate | 3,62 % | 3,31 % | |||
Group management have the following holdings (NOK thousands) | Holding 01.01 | Awarded | Exercised | Forfeitet | Holding 31.12 |
Trond H\u00e5kon Schaug-Pettersen (CEO) | 2 600 | 1 000 | 0 | 0 | 3 600 |
Ingjarl Skarv\u00f8y (COO) | 750 | 300 | 0 | 0 | 1 050 |
Kamilla Mordal Holo (Project Director) | 750 | 300 | 0 | 0 | 1 050 |
Odd Frode Roaldsnes (CCO) | 750 | 300 | 0 | 0 | 1 050 |
Trond Vadset Veibust (CFO) | 500 | 500 | 0 | 0 | 1 000 |
Henriette Nordstrand (Technical Director) | 125 | 150 | 0 | 0 | 275 |
Tore-Jacob Reite (Director Strategic Projects) | 125 | 100 | 0 | 0 | 225 |
Total | 5 600 | 2 650 | 0 | 0 | 8 250 |
Note 10 - Other operating expenses
Other operating expenses (NOK thousands) | 2024 | 2023 |
Cost of premises (not defined as RoU) | 5 968 | 3 506 |
Rented equipment | 6 900 | 5 565 |
Insurance | 5 533 | 5 425 |
Consultancy fees | 10 920 | 24 859 |
Electrisity | 48 287 | 29 428 |
Other operating expenses | 41 329 | 26 201 |
Other administrative expenses | 41 845 | 33 635 |
Total other operating expenses | 160 781 | 128 619 |
Note 10 - Other operating expenses
Other operating expenses (NOK thousands) | 2024 | 2023 |
Cost of premises (not defined as RoU) | 5 968 | 3 506 |
Rented equipment | 6 900 | 5 565 |
Insurance | 5 533 | 5 425 |
Consultancy fees | 10 920 | 24 859 |
Electrisity | 48 287 | 29 428 |
Other operating expenses | 41 329 | 26 201 |
Other administrative expenses | 41 845 | 33 635 |
Total other operating expenses | 160 781 | 128 619 |
Note 11 - Property, plant, equipment and intangible asset
Property, plant, equipment, intangibles & RoU assets (NOK thousands) | Intangible assets | Assets under construction | Assets in use, not allocated | Buildings | Fixtures and fittings | Right-of-use assets | Total |
Cost 1 January 2023 | 65 149 | 1 713 491 | 0 | 7 607 | 26 419 | 18 562 | 1 831 228 |
Additions | 7 201 | 269 490 | 0 | 2 157 | 438 | 3 601 | 282 887 |
Completed constructions | 0 | -1 912 199 | 54 019 | 1 573 232 | 284 031 | 0 | -917 |
Cost 31 December 2023 | 72 350 | 70 781 | 54 019 | 1 582 996 | 310 888 | 22 163 | 2 113 198 |
Accumulated depreciation 1 January 2023 | 0 | 0 | 0 | -951 | -2 534 | -5 561 | -9 046 |
Depreciation for the period | -3 | 0 | 0 | -26 760 | -15 450 | -4 518 | -46 731 |
Net book value 31 December 2023 | 72 347 | 70 781 | 54 019 | 1 555 286 | 292 904 | 12 084 | 2 057 422 |
Property, plant, equipment, intangibles & RoU assets (NOK thousands) | Intangible assets | Assets under construction | Assets in use, not allocated | Buildings | Fixtures and fittings | Right-of-use assets | Total |
Cost 1 January 2024 | 72 350 | 70 781 | 54 019 | 1 582 996 | 310 888 | 22 163 | 2 113 198 |
Additions | 12 184 | 391 137 | 0 | 7 987 | 9 502 | 7 623 | 428 433 |
Reclassified constructions | 0 | 19 859 | -54 019 | 7 756 | 26 404 | 0 | 0 |
Reclassification according to IFRS 16* | 0 | 0 | 0 | 0 | -4 692 | 0 | -4 692 |
Other reclassifications | -3 398 | 0 | 0 | 0 | 0 | 3 398 | 0 |
Cost 31 December 2024 | 81 136 | 481 778 | 0 | 1 598 740 | 342 102 | 33 185 | 2 536 939 |
Acc. depreciation 1 January 2024 | -3 | 0 | 0 | -27 711 | -17 984 | -10 079 | -55 776 |
Depreciation for the period | -32 | 0 | 0 | -40 366 | -30 496 | -5 249 | -76 143 |
Net book value 31 December 2024 | 81 101 | 481 778 | 0 | 1 530 664 | 293 622 | 17 857 | 2 405 020 |
Estimated lifetime | >3 years | n/a | n/a | 10-75 years | 3-50 years | 3-5 years | |
Depreciation method | Linear | n/a | n/a | Linear | Linear | Linear |
* The previously capitalised value of leased land has been reclassified in accordance with IFRS 16 due to the fact that the lease payments are a variable cost based on a percentage of sales.
Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset\u2019s historical cost and estimated residual value at disposal. Depreciation is charged to expense when the property, plant or equipment is ready for intended use.
In April 2023 the Group completed takeover of phase 1 at Indre Har\u00f8y, subsequently the Indre Har\u00f8y facility has been reclassified from asset under construction. These assets have commenced depreciation from May 2023.
Earned grants that goes in the balance sheets is included in new additions and is netted against the related asset\u2019s acquisition. Seenote 16for further information.
Capitalization of costs as asset under construction:
Costs incurred recognised as part of \u201cOther operating expenses\u201d in the \u201cStatement of Profit or Loss\u201d during 2024 has been capitalized as at 31 December 2024 as these costs are deemed to be part of the ongoing assets under construction and qualify for capitalisation in accordance with IAS 16. As a result, the reported \u201cOther operating expenses\u201d in 2024 reflects the incurred costs during this period, net of such capitalized costs related to the entire 12 months period ending 31 December 2024 which amounted to approximately NOK 39 million.
Capitalized internal cost (NOK thousands) | 01.01.2024 | Additions | 31.12.2024 |
Salary | 60 359 | 13 552 | 73 911 |
Rental/equipment | 7 618 | - | 7 618 |
Interest | 55 780 | 25 087 | 80 867 |
Total | 123 757 | 38 639 | 162 396 |
Capitalized internal cost (NOK thousands) | 01.01.2023 | Additions | 31.12.2023 |
Salary | 51 127 | 9 232 | 60 359 |
Rental/equipment | -7 884 | 266 | 7 618 |
Interest | 30 561 | 25 219 | 55 780 |
Total | 89 306 | 34 717 | 123 757 |
Contractual and financial commitments
Construction of phase 1 was completed medio April 2023 and remaining capital expenditures for phase 1 as per 31 December 2023 was moderate, consisting of improvements and adaptations. During 2024 the Group reached an agreement on the final settlement for the construction of phase 1 at Indre Har\u00f8y.
As to phase 2 at Indre Har\u00f8y, the Company has startet the construction, with the first smolt expected entered late Q1 2026.
Intangible Assets
The group is working on several development projects aimed at optimizing both biological processes and technical/building designs. This work is carried out using internal resources across the corporate structure and through purchased services. For accounting purposes, expenses related to development projects are partly capitalized and partly expensed. The use of internal empolyees is primarily expensed, as we consider that the employees\u2019 time spent on development work also benefits ongoing operations.
External services are capitalized as R&D projects, and the depreciation period for each project will be assessed as the projects are completed, allowing for an estimation of their expected useful life.
Most intangible asset is ongoing development cost related to a FOU and Skattefun, and is not amortized. In addition, a substantial part of trademark are defined with indefinite life and therefor not amortized either.
Intangible Assets (NOK thousands) | 01.01.2024 | Reclassifications | Additions | Grants | Depreciations | 31.12.2024 |
Development projects* | 8 137 | 0 | 13 466 | -1 596 | 0 | 20 008 |
Trademark | 3 349 | 0 | 55 | 0 | -32 | 3 372 |
Water rights | 16 597 | -3 398 | 289 | 0 | 0 | 13 487 |
Goodwill | 44 235 | 0 | 0 | 0 | 0 | 44 235 |
Total | 72 318 | -3 398 | 13 810 | -1 596 | -32 | 81 102 |
*See note 16for more information
Intangible Assets (NOK thousands) | 01.01.2023 | Reclassifications | Additions | Grants | Depreciations | 31.12.2023 |
Development projects* | 1 250 | 0 | 7 681 | -794 | 0 | 8 137 |
Trademark | 3 068 | 0 | 283 | 0 | -3 | 3 349 |
Water rights | 16 597 | 0 | 0 | 0 | 0 | 16 597 |
Goodwill | 44 235 | 0 | 0 | 0 | 0 | 44 235 |
Total | 65 149 | 0 | 7 965 | -794 | -3 | 72 318 |
*See note 16for more information
Impairment testing of goodwill and intangibles
Goodwill and intangibles with undefined economic lives is subject to an annual impairment test. The Group did not recognize any impairment of goodwill and intangibles in 2024. In 2024 the Group has asset that need to be impairment tested (including goodwill, water right, trademark). The Group has defined the Farming segment as a cash generating unit (CGU), and goodwill and water rights corresponding to 57.7 mnok is allocated to this CGU.
The impairment is done using the Groups rolling projections which is based on financial budgets where cash generating activities forms the basis of the valuation. This is done over a five-year period. The key assumptions for the analysis are EBITDA, EBITDA development within the company, and WACC.
Budgeted EBITDA margin is calculated using a forward salmon price in line with marked expectations, and an expected cost of production that is somewhat declining over the coming years (in line with scalling of operations). Further, the annual reinvestment is assumed to be equal to annual depreciations. Cash flow forecasts are estimated after tax, and weighted average cost of capital is set to be 8%. The cost of capital is calculated using a WACC model where market expecations in regards to risk free rate and risk premiums (both marked and debt risk), and the beta is calculated using the average beta of several peers. It is not expected that using a before tax rate would have given any value adjustments. Terminal value is calculated using Gordons Growth Model and a growth rate of 2%. As a result of the impairment testing, no need for impairment has been identified.
Note 11 - Property, plant, equipment and intangible asset
Property, plant, equipment, intangibles & RoU assets (NOK thousands) | Intangible assets | Assets under construction | Assets in use, not allocated | Buildings | Fixtures and fittings | Right-of-use assets | Total |
Cost 1 January 2023 | 65 149 | 1 713 491 | 0 | 7 607 | 26 419 | 18 562 | 1 831 228 |
Additions | 7 201 | 269 490 | 0 | 2 157 | 438 | 3 601 | 282 887 |
Completed constructions | 0 | -1 912 199 | 54 019 | 1 573 232 | 284 031 | 0 | -917 |
Cost 31 December 2023 | 72 350 | 70 781 | 54 019 | 1 582 996 | 310 888 | 22 163 | 2 113 198 |
Accumulated depreciation 1 January 2023 | 0 | 0 | 0 | -951 | -2 534 | -5 561 | -9 046 |
Depreciation for the period | -3 | 0 | 0 | -26 760 | -15 450 | -4 518 | -46 731 |
Net book value 31 December 2023 | 72 347 | 70 781 | 54 019 | 1 555 286 | 292 904 | 12 084 | 2 057 422 |
Property, plant, equipment, intangibles & RoU assets (NOK thousands) | Intangible assets | Assets under construction | Assets in use, not allocated | Buildings | Fixtures and fittings | Right-of-use assets | Total |
Cost 1 January 2024 | 72 350 | 70 781 | 54 019 | 1 582 996 | 310 888 | 22 163 | 2 113 198 |
Additions | 12 184 | 391 137 | 0 | 7 987 | 9 502 | 7 623 | 428 433 |
Reclassified constructions | 0 | 19 859 | -54 019 | 7 756 | 26 404 | 0 | 0 |
Reclassification according to IFRS 16* | 0 | 0 | 0 | 0 | -4 692 | 0 | -4 692 |
Other reclassifications | -3 398 | 0 | 0 | 0 | 0 | 3 398 | 0 |
Cost 31 December 2024 | 81 136 | 481 778 | 0 | 1 598 740 | 342 102 | 33 185 | 2 536 939 |
Acc. depreciation 1 January 2024 | -3 | 0 | 0 | -27 711 | -17 984 | -10 079 | -55 776 |
Depreciation for the period | -32 | 0 | 0 | -40 366 | -30 496 | -5 249 | -76 143 |
Net book value 31 December 2024 | 81 101 | 481 778 | 0 | 1 530 664 | 293 622 | 17 857 | 2 405 020 |
Estimated lifetime | >3 years | n/a | n/a | 10-75 years | 3-50 years | 3-5 years | |
Depreciation method | Linear | n/a | n/a | Linear | Linear | Linear |
* The previously capitalised value of leased land has been reclassified in accordance with IFRS 16 due to the fact that the lease payments are a variable cost based on a percentage of sales.
Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset\u2019s historical cost and estimated residual value at disposal. Depreciation is charged to expense when the property, plant or equipment is ready for intended use.
In April 2023 the Group completed takeover of phase 1 at Indre Har\u00f8y, subsequently the Indre Har\u00f8y facility has been reclassified from asset under construction. These assets have commenced depreciation from May 2023.
Earned grants that goes in the balance sheets is included in new additions and is netted against the related asset\u2019s acquisition. Seenote 16for further information.
Capitalization of costs as asset under construction:
Costs incurred recognised as part of \u201cOther operating expenses\u201d in the \u201cStatement of Profit or Loss\u201d during 2024 has been capitalized as at 31 December 2024 as these costs are deemed to be part of the ongoing assets under construction and qualify for capitalisation in accordance with IAS 16. As a result, the reported \u201cOther operating expenses\u201d in 2024 reflects the incurred costs during this period, net of such capitalized costs related to the entire 12 months period ending 31 December 2024 which amounted to approximately NOK 39 million.
Capitalized internal cost (NOK thousands) | 01.01.2024 | Additions | 31.12.2024 |
Salary | 60 359 | 13 552 | 73 911 |
Rental/equipment | 7 618 | - | 7 618 |
Interest | 55 780 | 25 087 | 80 867 |
Total | 123 757 | 38 639 | 162 396 |
Capitalized internal cost (NOK thousands) | 01.01.2023 | Additions | 31.12.2023 |
Salary | 51 127 | 9 232 | 60 359 |
Rental/equipment | -7 884 | 266 | 7 618 |
Interest | 30 561 | 25 219 | 55 780 |
Total | 89 306 | 34 717 | 123 757 |
Contractual and financial commitments
Construction of phase 1 was completed medio April 2023 and remaining capital expenditures for phase 1 as per 31 December 2023 was moderate, consisting of improvements and adaptations. During 2024 the Group reached an agreement on the final settlement for the construction of phase 1 at Indre Har\u00f8y.
As to phase 2 at Indre Har\u00f8y, the Company has startet the construction, with the first smolt expected entered late Q1 2026.
Note 11 - Property, plant, equipment and intangible asset
Property, plant, equipment, intangibles & RoU assets (NOK thousands) | Intangible assets | Assets under construction | Assets in use, not allocated | Buildings | Fixtures and fittings | Right-of-use assets | Total |
Cost 1 January 2023 | 65 149 | 1 713 491 | 0 | 7 607 | 26 419 | 18 562 | 1 831 228 |
Additions | 7 201 | 269 490 | 0 | 2 157 | 438 | 3 601 | 282 887 |
Completed constructions | 0 | -1 912 199 | 54 019 | 1 573 232 | 284 031 | 0 | -917 |
Cost 31 December 2023 | 72 350 | 70 781 | 54 019 | 1 582 996 | 310 888 | 22 163 | 2 113 198 |
Accumulated depreciation 1 January 2023 | 0 | 0 | 0 | -951 | -2 534 | -5 561 | -9 046 |
Depreciation for the period | -3 | 0 | 0 | -26 760 | -15 450 | -4 518 | -46 731 |
Net book value 31 December 2023 | 72 347 | 70 781 | 54 019 | 1 555 286 | 292 904 | 12 084 | 2 057 422 |
Property, plant, equipment, intangibles & RoU assets (NOK thousands) | Intangible assets | Assets under construction | Assets in use, not allocated | Buildings | Fixtures and fittings | Right-of-use assets | Total |
Cost 1 January 2024 | 72 350 | 70 781 | 54 019 | 1 582 996 | 310 888 | 22 163 | 2 113 198 |
Additions | 12 184 | 391 137 | 0 | 7 987 | 9 502 | 7 623 | 428 433 |
Reclassified constructions | 0 | 19 859 | -54 019 | 7 756 | 26 404 | 0 | 0 |
Reclassification according to IFRS 16* | 0 | 0 | 0 | 0 | -4 692 | 0 | -4 692 |
Other reclassifications | -3 398 | 0 | 0 | 0 | 0 | 3 398 | 0 |
Cost 31 December 2024 | 81 136 | 481 778 | 0 | 1 598 740 | 342 102 | 33 185 | 2 536 939 |
Acc. depreciation 1 January 2024 | -3 | 0 | 0 | -27 711 | -17 984 | -10 079 | -55 776 |
Depreciation for the period | -32 | 0 | 0 | -40 366 | -30 496 | -5 249 | -76 143 |
Net book value 31 December 2024 | 81 101 | 481 778 | 0 | 1 530 664 | 293 622 | 17 857 | 2 405 020 |
Estimated lifetime | >3 years | n/a | n/a | 10-75 years | 3-50 years | 3-5 years | |
Depreciation method | Linear | n/a | n/a | Linear | Linear | Linear |
* The previously capitalised value of leased land has been reclassified in accordance with IFRS 16 due to the fact that the lease payments are a variable cost based on a percentage of sales.
Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset\u2019s historical cost and estimated residual value at disposal. Depreciation is charged to expense when the property, plant or equipment is ready for intended use.
In April 2023 the Group completed takeover of phase 1 at Indre Har\u00f8y, subsequently the Indre Har\u00f8y facility has been reclassified from asset under construction. These assets have commenced depreciation from May 2023.
Earned grants that goes in the balance sheets is included in new additions and is netted against the related asset\u2019s acquisition. Seenote 16for further information.
Capitalization of costs as asset under construction:
Costs incurred recognised as part of \u201cOther operating expenses\u201d in the \u201cStatement of Profit or Loss\u201d during 2024 has been capitalized as at 31 December 2024 as these costs are deemed to be part of the ongoing assets under construction and qualify for capitalisation in accordance with IAS 16. As a result, the reported \u201cOther operating expenses\u201d in 2024 reflects the incurred costs during this period, net of such capitalized costs related to the entire 12 months period ending 31 December 2024 which amounted to approximately NOK 39 million.
Capitalized internal cost (NOK thousands) | 01.01.2024 | Additions | 31.12.2024 |
Salary | 60 359 | 13 552 | 73 911 |
Rental/equipment | 7 618 | - | 7 618 |
Interest | 55 780 | 25 087 | 80 867 |
Total | 123 757 | 38 639 | 162 396 |
Capitalized internal cost (NOK thousands) | 01.01.2023 | Additions | 31.12.2023 |
Salary | 51 127 | 9 232 | 60 359 |
Rental/equipment | -7 884 | 266 | 7 618 |
Interest | 30 561 | 25 219 | 55 780 |
Total | 89 306 | 34 717 | 123 757 |
Contractual and financial commitments
Construction of phase 1 was completed medio April 2023 and remaining capital expenditures for phase 1 as per 31 December 2023 was moderate, consisting of improvements and adaptations. During 2024 the Group reached an agreement on the final settlement for the construction of phase 1 at Indre Har\u00f8y.
As to phase 2 at Indre Har\u00f8y, the Company has startet the construction, with the first smolt expected entered late Q1 2026.
Intangible Assets
The group is working on several development projects aimed at optimizing both biological processes and technical/building designs. This work is carried out using internal resources across the corporate structure and through purchased services. For accounting purposes, expenses related to development projects are partly capitalized and partly expensed. The use of internal empolyees is primarily expensed, as we consider that the employees\u2019 time spent on development work also benefits ongoing operations.
External services are capitalized as R&D projects, and the depreciation period for each project will be assessed as the projects are completed, allowing for an estimation of their expected useful life.
Most intangible asset is ongoing development cost related to a FOU and Skattefun, and is not amortized. In addition, a substantial part of trademark are defined with indefinite life and therefor not amortized either.
Intangible Assets (NOK thousands) | 01.01.2024 | Reclassifications | Additions | Grants | Depreciations | 31.12.2024 |
Development projects* | 8 137 | 0 | 13 466 | -1 596 | 0 | 20 008 |
Trademark | 3 349 | 0 | 55 | 0 | -32 | 3 372 |
Water rights | 16 597 | -3 398 | 289 | 0 | 0 | 13 487 |
Goodwill | 44 235 | 0 | 0 | 0 | 0 | 44 235 |
Total | 72 318 | -3 398 | 13 810 | -1 596 | -32 | 81 102 |
*See note 16for more information
Intangible Assets (NOK thousands) | 01.01.2023 | Reclassifications | Additions | Grants | Depreciations | 31.12.2023 |
Development projects* | 1 250 | 0 | 7 681 | -794 | 0 | 8 137 |
Trademark | 3 068 | 0 | 283 | 0 | -3 | 3 349 |
Water rights | 16 597 | 0 | 0 | 0 | 0 | 16 597 |
Goodwill | 44 235 | 0 | 0 | 0 | 0 | 44 235 |
Total | 65 149 | 0 | 7 965 | -794 | -3 | 72 318 |
*See note 16for more information
Impairment testing of goodwill and intangibles
Goodwill and intangibles with undefined economic lives is subject to an annual impairment test. The Group did not recognize any impairment of goodwill and intangibles in 2024. In 2024 the Group has asset that need to be impairment tested (including goodwill, water right, trademark). The Group has defined the Farming segment as a cash generating unit (CGU), and goodwill and water rights corresponding to 57.7 mnok is allocated to this CGU.
The impairment is done using the Groups rolling projections which is based on financial budgets where cash generating activities forms the basis of the valuation. This is done over a five-year period. The key assumptions for the analysis are EBITDA, EBITDA development within the company, and WACC.
Budgeted EBITDA margin is calculated using a forward salmon price in line with marked expectations, and an expected cost of production that is somewhat declining over the coming years (in line with scalling of operations). Further, the annual reinvestment is assumed to be equal to annual depreciations. Cash flow forecasts are estimated after tax, and weighted average cost of capital is set to be 8%. The cost of capital is calculated using a WACC model where market expecations in regards to risk free rate and risk premiums (both marked and debt risk), and the beta is calculated using the average beta of several peers. It is not expected that using a before tax rate would have given any value adjustments. Terminal value is calculated using Gordons Growth Model and a growth rate of 2%. As a result of the impairment testing, no need for impairment has been identified.
Intangible Assets
The group is working on several development projects aimed at optimizing both biological processes and technical/building designs. This work is carried out using internal resources across the corporate structure and through purchased services. For accounting purposes, expenses related to development projects are partly capitalized and partly expensed. The use of internal empolyees is primarily expensed, as we consider that the employees\u2019 time spent on development work also benefits ongoing operations.
External services are capitalized as R&D projects, and the depreciation period for each project will be assessed as the projects are completed, allowing for an estimation of their expected useful life.
Most intangible asset is ongoing development cost related to a FOU and Skattefun, and is not amortized. In addition, a substantial part of trademark are defined with indefinite life and therefor not amortized either.
Intangible Assets (NOK thousands) | 01.01.2024 | Reclassifications | Additions | Grants | Depreciations | 31.12.2024 |
Development projects* | 8 137 | 0 | 13 466 | -1 596 | 0 | 20 008 |
Trademark | 3 349 | 0 | 55 | 0 | -32 | 3 372 |
Water rights | 16 597 | -3 398 | 289 | 0 | 0 | 13 487 |
Goodwill | 44 235 | 0 | 0 | 0 | 0 | 44 235 |
Total | 72 318 | -3 398 | 13 810 | -1 596 | -32 | 81 102 |
*See note 16for more information
Intangible Assets (NOK thousands) | 01.01.2023 | Reclassifications | Additions | Grants | Depreciations | 31.12.2023 |
Development projects* | 1 250 | 0 | 7 681 | -794 | 0 | 8 137 |
Trademark | 3 068 | 0 | 283 | 0 | -3 | 3 349 |
Water rights | 16 597 | 0 | 0 | 0 | 0 | 16 597 |
Goodwill | 44 235 | 0 | 0 | 0 | 0 | 44 235 |
Total | 65 149 | 0 | 7 965 | -794 | -3 | 72 318 |
*See note 16for more information
Impairment testing of goodwill and intangibles
Goodwill and intangibles with undefined economic lives is subject to an annual impairment test. The Group did not recognize any impairment of goodwill and intangibles in 2024. In 2024 the Group has asset that need to be impairment tested (including goodwill, water right, trademark). The Group has defined the Farming segment as a cash generating unit (CGU), and goodwill and water rights corresponding to 57.7 mnok is allocated to this CGU.
The impairment is done using the Groups rolling projections which is based on financial budgets where cash generating activities forms the basis of the valuation. This is done over a five-year period. The key assumptions for the analysis are EBITDA, EBITDA development within the company, and WACC.
Budgeted EBITDA margin is calculated using a forward salmon price in line with marked expectations, and an expected cost of production that is somewhat declining over the coming years (in line with scalling of operations). Further, the annual reinvestment is assumed to be equal to annual depreciations. Cash flow forecasts are estimated after tax, and weighted average cost of capital is set to be 8%. The cost of capital is calculated using a WACC model where market expecations in regards to risk free rate and risk premiums (both marked and debt risk), and the beta is calculated using the average beta of several peers. It is not expected that using a before tax rate would have given any value adjustments. Terminal value is calculated using Gordons Growth Model and a growth rate of 2%. As a result of the impairment testing, no need for impairment has been identified.
Impairment testing of goodwill and intangibles
Goodwill and intangibles with undefined economic lives is subject to an annual impairment test. The Group did not recognize any impairment of goodwill and intangibles in 2024. In 2024 the Group has asset that need to be impairment tested (including goodwill, water right, trademark). The Group has defined the Farming segment as a cash generating unit (CGU), and goodwill and water rights corresponding to 57.7 mnok is allocated to this CGU.
The impairment is done using the Groups rolling projections which is based on financial budgets where cash generating activities forms the basis of the valuation. This is done over a five-year period. The key assumptions for the analysis are EBITDA, EBITDA development within the company, and WACC.
Budgeted EBITDA margin is calculated using a forward salmon price in line with marked expectations, and an expected cost of production that is somewhat declining over the coming years (in line with scalling of operations). Further, the annual reinvestment is assumed to be equal to annual depreciations. Cash flow forecasts are estimated after tax, and weighted average cost of capital is set to be 8%. The cost of capital is calculated using a WACC model where market expecations in regards to risk free rate and risk premiums (both marked and debt risk), and the beta is calculated using the average beta of several peers. It is not expected that using a before tax rate would have given any value adjustments. Terminal value is calculated using Gordons Growth Model and a growth rate of 2%. As a result of the impairment testing, no need for impairment has been identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__83": { "value": "Note 12 - Finance income & finance cost
Finance income (NOK thousands) | 2024 | 2023 |
Interest income | 21 250 | 15 591 |
Net change in value of financial derivatives | 977 | 947 |
Foreign exchange gains | 5 338 | 4 937 |
Other finance income | 674 | 6 |
Financial income | 28 239 | 21 481 |
Share of net income from associated companies | -7 809 | -7 098 |
Total financial income | 20 430 | 14 383 |
Finance expenses (NOK thousands) | 2024 | 2023 |
Interest on debts and borrowings | 53 232 | 33 914 |
Realized loss/-gain on interest derivative | -5 966 | -3 027 |
Foreign exchange losses | 4 460 | 4 195 |
Reduced value of contract related to power supply | 0 | 13 903 |
Other finance expenses | 884 | 640 |
Total financial expenses | 52 610 | 49 624 |
Net financial income/- expenses | -32 180 | -35 241 |
Fair value adjustments - financial assets (NOK thousands) | 2024 | 2023 |
Unrealised changes in the value of interest rate swap | 977 | 947 |
Unrealised changes in the value of contract related to power supply | 0 | -13 903 |
Realised profit (loss) related to power supply contract | 0 | 0 |
Fair value adjustments recognised in profit and loss | 977 | -12 956 |
Interest income is mainly related to interest on cash deposits held with Norwegian financial institutions.
Incurred interest expenses and establishing fees are capitalized as part of assets under construction in accordance with IAS 23.
The negative impact from share of net income from associated companies are related to a loss at K\u00a0Smart Farming.
The Group did not have any fair value adjustments of financial liabilities in 2024, nor in 2023.
Note 12 - Finance income & finance cost
Finance income (NOK thousands) | 2024 | 2023 |
Interest income | 21 250 | 15 591 |
Net change in value of financial derivatives | 977 | 947 |
Foreign exchange gains | 5 338 | 4 937 |
Other finance income | 674 | 6 |
Financial income | 28 239 | 21 481 |
Share of net income from associated companies | -7 809 | -7 098 |
Total financial income | 20 430 | 14 383 |
Finance expenses (NOK thousands) | 2024 | 2023 |
Interest on debts and borrowings | 53 232 | 33 914 |
Realized loss/-gain on interest derivative | -5 966 | -3 027 |
Foreign exchange losses | 4 460 | 4 195 |
Reduced value of contract related to power supply | 0 | 13 903 |
Other finance expenses | 884 | 640 |
Total financial expenses | 52 610 | 49 624 |
Net financial income/- expenses | -32 180 | -35 241 |
Interest income is mainly related to interest on cash deposits held with Norwegian financial institutions.
Incurred interest expenses and establishing fees are capitalized as part of assets under construction in accordance with IAS 23.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300P2OB7L255PF765", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__88-1": { "value": "Note 12 - Finance income & finance cost
Finance income (NOK thousands) | 2024 | 2023 |
Interest income | 21 250 | 15 591 |
Net change in value of financial derivatives | 977 | 947 |
Foreign exchange gains | 5 338 | 4 937 |
Other finance income | 674 | 6 |
Financial income | 28 239 | 21 481 |
Share of net income from associated companies | -7 809 | -7 098 |
Total financial income | 20 430 | 14 383 |
Note 12 - Finance income & finance cost
Finance income (NOK thousands) | 2024 | 2023 |
Interest income | 21 250 | 15 591 |
Net change in value of financial derivatives | 977 | 947 |
Foreign exchange gains | 5 338 | 4 937 |
Other finance income | 674 | 6 |
Financial income | 28 239 | 21 481 |
Share of net income from associated companies | -7 809 | -7 098 |
Total financial income | 20 430 | 14 383 |
Finance expenses (NOK thousands) | 2024 | 2023 |
Interest on debts and borrowings | 53 232 | 33 914 |
Realized loss/-gain on interest derivative | -5 966 | -3 027 |
Foreign exchange losses | 4 460 | 4 195 |
Reduced value of contract related to power supply | 0 | 13 903 |
Other finance expenses | 884 | 640 |
Total financial expenses | 52 610 | 49 624 |
Net financial income/- expenses | -32 180 | -35 241 |
Fair value adjustments - financial assets (NOK thousands) | 2024 | 2023 |
Unrealised changes in the value of interest rate swap | 977 | 947 |
Unrealised changes in the value of contract related to power supply | 0 | -13 903 |
Realised profit (loss) related to power supply contract | 0 | 0 |
Fair value adjustments recognised in profit and loss | 977 | -12 956 |
Interest income is mainly related to interest on cash deposits held with Norwegian financial institutions.
Incurred interest expenses and establishing fees are capitalized as part of assets under construction in accordance with IAS 23.
The negative impact from share of net income from associated companies are related to a loss at K\u00a0Smart Farming.
The Group did not have any fair value adjustments of financial liabilities in 2024, nor in 2023.
Note 12 - Finance income & finance cost
Finance income (NOK thousands) | 2024 | 2023 |
Interest income | 21 250 | 15 591 |
Net change in value of financial derivatives | 977 | 947 |
Foreign exchange gains | 5 338 | 4 937 |
Other finance income | 674 | 6 |
Financial income | 28 239 | 21 481 |
Share of net income from associated companies | -7 809 | -7 098 |
Total financial income | 20 430 | 14 383 |
Finance expenses (NOK thousands) | 2024 | 2023 |
Interest on debts and borrowings | 53 232 | 33 914 |
Realized loss/-gain on interest derivative | -5 966 | -3 027 |
Foreign exchange losses | 4 460 | 4 195 |
Reduced value of contract related to power supply | 0 | 13 903 |
Other finance expenses | 884 | 640 |
Total financial expenses | 52 610 | 49 624 |
Net financial income/- expenses | -32 180 | -35 241 |
Fair value adjustments - financial assets (NOK thousands) | 2024 | 2023 |
Unrealised changes in the value of interest rate swap | 977 | 947 |
Unrealised changes in the value of contract related to power supply | 0 | -13 903 |
Realised profit (loss) related to power supply contract | 0 | 0 |
Fair value adjustments recognised in profit and loss | 977 | -12 956 |
Interest income is mainly related to interest on cash deposits held with Norwegian financial institutions.
Incurred interest expenses and establishing fees are capitalized as part of assets under construction in accordance with IAS 23.
The negative impact from share of net income from associated companies are related to a loss at K\u00a0Smart Farming.
The Group did not have any fair value adjustments of financial liabilities in 2024, nor in 2023.
Finance expenses (NOK thousands) | 2024 | 2023 |
Interest on debts and borrowings | 53 232 | 33 914 |
Realized loss/-gain on interest derivative | -5 966 | -3 027 |
Foreign exchange losses | 4 460 | 4 195 |
Reduced value of contract related to power supply | 0 | 13 903 |
Other finance expenses | 884 | 640 |
Total financial expenses | 52 610 | 49 624 |
Net financial income/- expenses | -32 180 | -35 241 |
Note 13 - Investment in assosiated companies
The group has the following investments in associated companies:
Location and place of business | Ownership | Voting share | |
K Smart Farming Co., Ltd | Gangwangnak-ro, South Korea | 49 % | 49 % |
Net book value 31 December 2022 | 26 635 | ||
Share of net income 2023 | -7 098 | ||
Foreign currency translation gain/(loss) YTD 2023 | -861 | ||
Net book value 31 Dec 2023 | 18 676 | ||
Share of net income YTD 2024 | -7 809 | ||
Foreign currency translation gain/(loss) YTD 2024 | -178 | ||
Net book value 31 Dec 2024 | 10 689 |
Investments in associated companies are recognized using the equity method.
K Smart Farming Co., Ltd is a joint venture between Salmon Evolution and the south Korean seafood firm Dongwon Industries, with Dongwon Industries holding 51 % ownership and voting rights. The JV agreement includes several elements that is in place to balance the controll.
The Company currently sees the overall project economics as challenging, primarily driven by site specific circumstances at the Yangyang grow-out site, in particular related to the intake and discharge water solution due to a relatively long and shallow shoreline at the grow-out site. Additionally, given that Korea has no existing salmon farming industry, certain other infrastructure items are impacting the project cost as well as operating cost.
The project is currently working with authorities in South Korea on governmental financial support, further clarifications are expected during 2025. Meanwhile project activities have been scaled down and cash burn has been reduced to a minimum.
Note 13 - Investment in assosiated companies
The group has the following investments in associated companies:
Location and place of business | Ownership | Voting share | |
K Smart Farming Co., Ltd | Gangwangnak-ro, South Korea | 49 % | 49 % |
Net book value 31 December 2022 | 26 635 | ||
Share of net income 2023 | -7 098 | ||
Foreign currency translation gain/(loss) YTD 2023 | -861 | ||
Net book value 31 Dec 2023 | 18 676 | ||
Share of net income YTD 2024 | -7 809 | ||
Foreign currency translation gain/(loss) YTD 2024 | -178 | ||
Net book value 31 Dec 2024 | 10 689 |
Investments in associated companies are recognized using the equity method.
K Smart Farming Co., Ltd is a joint venture between Salmon Evolution and the south Korean seafood firm Dongwon Industries, with Dongwon Industries holding 51 % ownership and voting rights. The JV agreement includes several elements that is in place to balance the controll.
The Company currently sees the overall project economics as challenging, primarily driven by site specific circumstances at the Yangyang grow-out site, in particular related to the intake and discharge water solution due to a relatively long and shallow shoreline at the grow-out site. Additionally, given that Korea has no existing salmon farming industry, certain other infrastructure items are impacting the project cost as well as operating cost.
The project is currently working with authorities in South Korea on governmental financial support, further clarifications are expected during 2025. Meanwhile project activities have been scaled down and cash burn has been reduced to a minimum.
Note 14 - Taxes
Calculation of current and deferred tax/deferred tax benefit (NOK thousands) | 2024 | 2023 |
Intangible assets | 57 722 | 57 722 |
Fixed assets | 230 277 | 145 389 |
Accounts receivable | -115 | -267 |
Inventories | 171 004 | 153 790 |
Right-of-use assets | 17 857 | 19 886 |
Lease liabilities | -18 629 | -21 240 |
Other current liabilities | 0 | 0 |
Net temporary differences | 458 117 | 355 280 |
Tax losses carried forward | -805 166 | -642 780 |
Change due to unrealized financial instruments | 12 666 | 12 900 |
Basis for deferred tax (deferred tax asset) | -334 383 | -274 600 |
Deferred tax (22%) | -73 564 | -60 412 |
Deferred tax benefit not recognized in the balance sheet* | 73 564 | 59 997 |
Deferred tax in the balance sheet | 0 | -415 |
*Deferred tax benefit has historically not been recognized in the balance sheet as the Group is in its start-up phase and does not have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit. As of 31.12.2024 there is a basis for payable tax in the subsidiary Salmon Evolution Sales AS. This will be offset with a group contribution from Salmon Evolution ASA. The tax effect of the group contribution is recognized as a deferred tax asset.
Basis for income tax expense, changes in deferred tax and tax payable (NOK thousands) | 2024 | 2023 |
Result before taxes | -47 405 | -145 773 |
Permanent differences in relation to skattefunn | -2 258 | -2 037 |
Other permanent differences | -8 121 | -1 244 |
Basis for the tax expense | -57 784 | -149 054 |
Change in temporary differences | -103 874 | -219 880 |
Change due to equity transactions | 0 | 0 |
Change in tax losses carried forward | -161 658 | -368 934 |
Basis for payable taxes in the income statement | 0 | 1 887 |
Components of the tax expense (NOK thousands) | 2024 | 2023 |
Payable tax on this year's result | 0 | 415 |
Total payable tax | 0 | 415 |
Change in deferred tax | -13 152 | -33 878 |
Change in deferred tax due to previous year group contribution | -415 | -2 077 |
Change in deferred tax not capitalized in the balance sheet | 13 567 | 35 539 |
Tax expense | 0 | 0 |
Reconciliation of the tax expense with the nominal tax rate (NOK thousands) | 2024 | 2023 |
Result before taxes | -47 405 | -145 773 |
Calculated tax (22%) | -10 429 | -32 070 |
Tax expense | 0 | 0 |
Difference | 10 429 | 32 070 |
The difference consists of: | ||
Tax on permanent differences | -2 283 | -722 |
Change in tax rate | 0 | 0 |
Change in deferred tax | 0 | 0 |
Change in deferred tax due to change in tax rate | 0 | 0 |
Change in deferred tax not shown in the balance sheet | 13 567 | 35 539 |
Change in defferred tax due to acquisition | 0 | 0 |
Change due to unrealized financial instruments | -855 | -2 747 |
Sum explained differences | 10 429 | 32 070 |
Basis for income tax expense, changes in deferred tax and tax payable (NOK thousands) | 2024 | 2023 |
Result before taxes | -47 405 | -145 773 |
Permanent differences in relation to skattefunn | -2 258 | -2 037 |
Other permanent differences | -8 121 | -1 244 |
Basis for the tax expense | -57 784 | -149 054 |
Change in temporary differences | -103 874 | -219 880 |
Change due to equity transactions | 0 | 0 |
Change in tax losses carried forward | -161 658 | -368 934 |
Basis for payable taxes in the income statement | 0 | 1 887 |
Components of the tax expense (NOK thousands) | 2024 | 2023 |
Payable tax on this year's result | 0 | 415 |
Total payable tax | 0 | 415 |
Change in deferred tax | -13 152 | -33 878 |
Change in deferred tax due to previous year group contribution | -415 | -2 077 |
Change in deferred tax not capitalized in the balance sheet | 13 567 | 35 539 |
Tax expense | 0 | 0 |
Reconciliation of the tax expense with the nominal tax rate (NOK thousands) | 2024 | 2023 |
Result before taxes | -47 405 | -145 773 |
Calculated tax (22%) | -10 429 | -32 070 |
Tax expense | 0 | 0 |
Difference | 10 429 | 32 070 |
The difference consists of: | ||
Tax on permanent differences | -2 283 | -722 |
Change in tax rate | 0 | 0 |
Change in deferred tax | 0 | 0 |
Change in deferred tax due to change in tax rate | 0 | 0 |
Change in deferred tax not shown in the balance sheet | 13 567 | 35 539 |
Change in defferred tax due to acquisition | 0 | 0 |
Change due to unrealized financial instruments | -855 | -2 747 |
Sum explained differences | 10 429 | 32 070 |
Basis for income tax expense, changes in deferred tax and tax payable (NOK thousands) | 2024 | 2023 |
Result before taxes | -47 405 | -145 773 |
Permanent differences in relation to skattefunn | -2 258 | -2 037 |
Other permanent differences | -8 121 | -1 244 |
Basis for the tax expense | -57 784 | -149 054 |
Change in temporary differences | -103 874 | -219 880 |
Change due to equity transactions | 0 | 0 |
Change in tax losses carried forward | -161 658 | -368 934 |
Basis for payable taxes in the income statement | 0 | 1 887 |
Components of the tax expense (NOK thousands) | 2024 | 2023 |
Payable tax on this year's result | 0 | 415 |
Total payable tax | 0 | 415 |
Change in deferred tax | -13 152 | -33 878 |
Change in deferred tax due to previous year group contribution | -415 | -2 077 |
Change in deferred tax not capitalized in the balance sheet | 13 567 | 35 539 |
Tax expense | 0 | 0 |
Reconciliation of the tax expense with the nominal tax rate (NOK thousands) | 2024 | 2023 |
Result before taxes | -47 405 | -145 773 |
Calculated tax (22%) | -10 429 | -32 070 |
Tax expense | 0 | 0 |
Difference | 10 429 | 32 070 |
Note 15 - Earnings per share
Earnings per share (NOK thousands) | 2024 | 2023 |
Loss atributable to the equity owners of the Parent company | -47 405 | -145 773 |
Loss for calculation of diluted earnings per share | -47 405 | -145 773 |
Weighted average number of shares outstanding | 440 297 748 | 391 209 367 |
Dilutive options | 0 | 0 |
Average number of shares and options used in calculation for diluted EPS | 440 297 748 | 391 209 367 |
Basic earnings per share (NOK) | -0,11 | -0,37 |
Diluted earnings per share (NOK) | -0,11 | -0,37 |
Basic earnings per share are based on the weighted average number of common shares outstanding during the period.
FY 2024: The Company had 413,936,640 until mid June 2024. In June the Company made an issue of 48,666,660 new shares in a capital raise. Therefor the weighted average number of shares outstanding in 2024 has been calculated by applying a weight of 5.5/12 of the number of shares before the capital raise, and 6.5/12 of the total number of shares after the capital raise (462,603,300 shares).
FY 2023: The Company had 345,754,822 shares for the first four months of the year. In April the Company made an issue of 68,181,818 new shares in a capital raise. Therefor the weighted average number of shares outstanding in 2023 has been calculated by applying a weight of 4/12 of the number of shares before the capital raise, and 8/12 of the total number of shares after the capital raise (413,936,640 shares).
Note 16 - Government grants
The Group has received a commitment from the The Norwegian Resarch Council (Norsk Forskningsr\u00e5d) for two projects started in 2023. The grant is given for one period of three years and is related to the tax incentive scheme SkatteFUNN which is a government program designed to stimulate research and development (R&D) in Norwegian trade and industry. The receivable is accounted for as a short-term receivable from the tax authorities. In the financial accounts the receivable related to the grant is netted partly against the related asset\u2019s acquisition cost, partly against expenses recognised in the income statement. Grants for 2024 amounted to NOK 2,258 thousand (NOK 2,037 thousands in 2023).
SkatteFUNN (NOK thousands) | Expense | Capitalized | FY 2024 |
Systems for data input, handling and analytics | 839 | 6 107 | 6 946 |
Grants | -159 | -1 160 | -1 320 |
Landbased Salmon | 1 828 | 1 822 | 3 650 |
Grants | -347 | -346 | -694 |
Light in the fry phase | 817 | 469 | 1 286 |
Grants | -155 | -89 | -244 |
Total SkatteFUNN project costs | 2 823 | 6 803 | 9 624 |
SkatteFUNN (NOK thousands) | Expense | Capitalized | FY 2024 |
Systems for data input, handling and analytics | 2 514 | 4 378 | 6 892 |
Grants | -768 | -542 | -1 310 |
Landbased Salmon | 2 278 | 1 551 | 3 829 |
Grants | -505 | -222 | -727 |
Total SkatteFUNN project costs | 3 519 | 5 165 | 8 684 |
Further, the Group has received a comittment from Fisheries and Aquaculture Industry Research Funding (FHF) for the project \u201c Realization of the potential sensor data for improved efficiency and fish welfare. In the financial accounts, these grants are recognised as income in the P&L. Grants for 2024 amounted to NOK 1,673 million.
Other grants received (NOK thousands) | 2024 | 2023 |
RFF | - | 500 |
FHF | 1 673 | 1 755 |
Total grants received | 1 673 | 2 255 |
Note 17 - Leases
Amounts recognised in the balance sheet (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Right-of-use assets | ||
Water rights (reclassified from intangibles as of 31.12.2024)* | 3 398 | 0 |
Rent of premises | 4 630 | 6 153 |
Car | 1 911 | 2 639 |
Other equipment | 7 918 | 3 292 |
Total right-of-use assets | 17 857 | 12 084 |
Lease liabilities | ||
Current | 5 317 | 4 350 |
Non-current | 13 311 | 8 189 |
Total lease liabilities | 18 629 | 12 539 |
* Leased water rights at Dale have previously been classified as intangible assets, but have been reclassified to ROU from 31.12.2024 in accordance with IFRS 16. See note 11.
Amounts recognised in the statement of profit or loss (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Depreciation right-of-use assets | ||
Rent of premises | 2 149 | 2 058 |
Car | 764 | 988 |
Other equipment | 2 336 | 1 472 |
Gross depreciation | 5 249 | 4 518 |
- Capitalized as assets under construction | 0 | 0 |
Net depreciation | 5 249 | 4 518 |
Interest expense lease liability | 690 | 633 |
The total cash outflow for leases in 2024 was NOK 5,390 thousand.
2023 (NOK thousands) | Rent of premises | Vechicles | Equipment | |
Right-of-use assets 01.01.2023 | 8 211 | 1 079 | 3 711 | |
Additions | 0 | 2 548 | 1 053 | |
Depreciations | -2 058 | -988 | -1 472 | |
Right-of-use assets 31.12.2023 | 6 153 | 2 639 | 3 292 | |
Lease liabilities 01.01.2023 | 8 175 | 1 119 | 3 934 | |
Additions | 0 | 2 548 | 1 053 | |
Repayments | -1 782 | -1 674 | -835 | |
Lease liabilities 31.12.2023 | 6 393 | 1 993 | 4 152 | |
2024 (NOK thousands) | Water rights | Rent of premises | Vechicles | Equipment |
Right-of-use assets 01.01.2024 | 0 | 6 153 | 2 639 | 3 292 |
Reclassifications | 3 398 | 0 | 0 | 0 |
Additions | 0 | 626 | 36 | 6 962 |
Depreciations | 0 | -2 149 | -764 | -2 336 |
Right-of-use assets 31.12.2024 | 3 398 | 4 630 | 1 911 | 7 918 |
Lease liabilities 01.01.2024 | 0 | 6 393 | 2 792 | 3 353 |
Additions | 3 643 | 626 | 36 | 6 962 |
Repayments | 0 | -2 097 | -323 | -2 756 |
Lease liabilities 31.12.2024 | 3 643 | 4 922 | 2 505 | 7 559 |
Leasing period | Infinite | 3-5 years | 3-10 years | 3-8 years |
The Group has entered into several lease agreements that are considered to qualify as short-term and/or low-value in accordance with IFRS 16. Payments associated with such short-term and low-value leases are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture. The total cost of renting equipment not categorized as ROU amounted to 6,9 MNOK in 2024.
Note 18 - Other current receivables and prepayments
Other current receivables (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 | |
Other current prepayments | 22 745 | 24 684 | |
VAT receivable | 26 129 | 0 | |
Other receivables | 10 | 4 400 | |
Tax incentive scheme (\"Skattefunn\") | 2 258 | 2 037 | |
Total other currenct receivables and prepayments | 51 142 | 31 121 | |
Current receivables pr 31.12.24 (NOK thousands) | 0-3 months | 4-12 months | Total |
VAT receivables | 26 129 | 0 | 26 129 |
Other receivables | 10 | 0 | 10 |
Tax incentive scheme (\"Skattefunn\") | 0 | 2 258 | 2 258 |
Total other current receivables | 26 139 | 2 258 | 28 397 |
As of 31 December 2024 all of the Group\u2019s other current receivables were due within one year and considered fully collectible. Accordingly, the fair value of the Group\u2019s other current receivables was equal to nominal value, no bad debt was recognized for the years then ended, and management did not consider a provision for uncollectible accounts necessary.
As of 31 December 2024 the Group did not have any currenct receivables in foreign currencies, nor in 2023.
Note 18 - Other current receivables and prepayments
Other current receivables (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 | |
Other current prepayments | 22 745 | 24 684 | |
VAT receivable | 26 129 | 0 | |
Other receivables | 10 | 4 400 | |
Tax incentive scheme (\"Skattefunn\") | 2 258 | 2 037 | |
Total other currenct receivables and prepayments | 51 142 | 31 121 | |
Current receivables pr 31.12.24 (NOK thousands) | 0-3 months | 4-12 months | Total |
VAT receivables | 26 129 | 0 | 26 129 |
Other receivables | 10 | 0 | 10 |
Tax incentive scheme (\"Skattefunn\") | 0 | 2 258 | 2 258 |
Total other current receivables | 26 139 | 2 258 | 28 397 |
As of 31 December 2024 all of the Group\u2019s other current receivables were due within one year and considered fully collectible. Accordingly, the fair value of the Group\u2019s other current receivables was equal to nominal value, no bad debt was recognized for the years then ended, and management did not consider a provision for uncollectible accounts necessary.
As of 31 December 2024 the Group did not have any currenct receivables in foreign currencies, nor in 2023.
Note 19 - Derivative financial instruments
Financial assets (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Derivative financial assets | ||
Derivatives not designated as hedging instruments | ||
Interest rate swaps | 13 643 | 12 666 |
Currency hedging | 0 | 234 |
Total derivative financial assets | 13 643 | 12 900 |
The derivative financial assets relate to hedging contracts for the Company\u2019s interest rate exposure and consist of an interest rate swap contract of NOK 50 million in Sparebanken Vest and a similar contract of NOK 150 million in Nordea. Both contracts are due in January 2028 and have a fixed interest swap of 1.79%. Changes in market value are registered as unrealized profit/loss under financial income and allocated as unrealized profit/loss under other current receivables in the balance sheet.
In addition, the Company holds Power Purchase Agreements (PPAs), which are contracts to purchase electricity at a fixed price for its own consumption. These agreements are established to secure future electricity prices and are exclusively for internal use. Since they are not intended for trading and involve the physical delivery of electricity, they do not meet the criteria for recognition as derivatives. Consequently, the financial implications of these agreements are not reflected on the balance sheet as derivative instruments.
See note 3for further description and more details on valuation method.
Note 19 - Derivative financial instruments
Financial assets (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Derivative financial assets | ||
Derivatives not designated as hedging instruments | ||
Interest rate swaps | 13 643 | 12 666 |
Currency hedging | 0 | 234 |
Total derivative financial assets | 13 643 | 12 900 |
The derivative financial assets relate to hedging contracts for the Company\u2019s interest rate exposure and consist of an interest rate swap contract of NOK 50 million in Sparebanken Vest and a similar contract of NOK 150 million in Nordea. Both contracts are due in January 2028 and have a fixed interest swap of 1.79%. Changes in market value are registered as unrealized profit/loss under financial income and allocated as unrealized profit/loss under other current receivables in the balance sheet.
In addition, the Company holds Power Purchase Agreements (PPAs), which are contracts to purchase electricity at a fixed price for its own consumption. These agreements are established to secure future electricity prices and are exclusively for internal use. Since they are not intended for trading and involve the physical delivery of electricity, they do not meet the criteria for recognition as derivatives. Consequently, the financial implications of these agreements are not reflected on the balance sheet as derivative instruments.
See note 3for further description and more details on valuation method.
Note 19 - Derivative financial instruments
Financial assets (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Derivative financial assets | ||
Derivatives not designated as hedging instruments | ||
Interest rate swaps | 13 643 | 12 666 |
Currency hedging | 0 | 234 |
Total derivative financial assets | 13 643 | 12 900 |
The derivative financial assets relate to hedging contracts for the Company\u2019s interest rate exposure and consist of an interest rate swap contract of NOK 50 million in Sparebanken Vest and a similar contract of NOK 150 million in Nordea. Both contracts are due in January 2028 and have a fixed interest swap of 1.79%. Changes in market value are registered as unrealized profit/loss under financial income and allocated as unrealized profit/loss under other current receivables in the balance sheet.
In addition, the Company holds Power Purchase Agreements (PPAs), which are contracts to purchase electricity at a fixed price for its own consumption. These agreements are established to secure future electricity prices and are exclusively for internal use. Since they are not intended for trading and involve the physical delivery of electricity, they do not meet the criteria for recognition as derivatives. Consequently, the financial implications of these agreements are not reflected on the balance sheet as derivative instruments.
See note 3for further description and more details on valuation method.
Note 20 - Cash and restricted cash
Cash and cash equivalents (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Cash in bank | 425 818 | 382 826 |
Restricted bank deposits | 3 644 | 3 570 |
Total cash and cash equivalents | 429 462 | 386 396 |
Restricted cash are related to tax witholdings for employees (NOK 3,644 thousand).
Note 20 - Cash and restricted cash
Cash and cash equivalents (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Cash in bank | 425 818 | 382 826 |
Restricted bank deposits | 3 644 | 3 570 |
Total cash and cash equivalents | 429 462 | 386 396 |
Restricted cash are related to tax witholdings for employees (NOK 3,644 thousand).
Note 21 - Share Capital & Capital history
(NOK thousands) | |||
Nominal value | |||
31 Dec 2024 | 31 Dec 2023 | ||
Ordinary shares | 0,05 | 462 603 306 | 413 936 640 |
Average number of shares | 0,05 | 440 297 748 | 395 531 302 |
Share capital | 23 130 | 20 697 | |
Share premium | 2 415 049 | 2 124 647 | |
Total | 2 438 179 | 2 145 344 |
The number of shares issued in the company at 31 December 2024 was 462,603,306 with a nominal value of NOK 0.05 each. All shares carry equal voting rights.
20 largest shareholders as of 31.12.24 | No of shares | Percentage share |
Ronja Capital Investment AS | 32 407 311 | 7,0 % |
DNB Asset Management | 30 181 466 | 6,5 % |
Arctic Fund Management | 24 569 080 | 5,3 % |
Handelsbanken Fonder | 22 931 481 | 5,0 % |
Farvatn AS | 21 168 366 | 4,6 % |
Dongwon Industries | 17 932 838 | 3,9 % |
Nordea Investment Management | 16 702 022 | 3,6 % |
Rofisk AS | 15 204 563 | 3,3 % |
Kj\u00f8l\u00e5s Stansekniver AS | 13 173 105 | 2,8 % |
Stette Invest AS | 12 410 954 | 2,7 % |
Jakob Hatteland Holding AS | 9 790 519 | 2,1 % |
Ewos AS | 9 480 984 | 2,0 % |
Mevold Invest AS | 9 074 474 | 2,0 % |
Lyngheim Invest AS | 8 449 252 | 1,8 % |
Kristofer Reiten | 7 569 330 | 1,6 % |
Bond\u00f8 Invest AS | 4 614 718 | 1,0 % |
Salmoserve AS | 4 136 666 | 0,9 % |
Hustadlitt AS | 3 624 094 | 0,8 % |
Nordnet Livsforsikring AS | 3 349 404 | 0,7 % |
AS Straen | 3 300 000 | 0,7 % |
Total 20 largest shareholders | 270 070 627 | 58,4 % |
Other shareholders | 192 532 679 | 41,6 % |
Total number of shares | 462 603 306 | 100,0 % |
As of 31 December 2024, shares directly held by members of the Board of Directors, Chief Executive officer, and Executive Management consisted of the following:
No of shares | Percentage share | |
Peder Stette, Member of the board - Stette Invest AS | 12 410 954 | 2,8 % |
Vibecke Bond\u00f8, Member of the board - Bond\u00f8 Invest AS | 4 614 718 | 0,5 % |
Ingjarl Skarv\u00f8y, COO - Terra Mare AS and private | 1 800 150 | 0,4 % |
Trond H\u00e5kon Schaug-Pettersen, CEO - Troha Invest AS | 500 000 | 0,1 % |
Odd Frode Roaldsnes, CCO - Anno Invest AS | 275 000 | 0,1 % |
Jan-Emil Johannessen, Member of the board - Jawendel AS | 173 333 | 0,0 % |
Anne Breiby, Member of the board | 168 935 | 0,0 % |
Kamilla Mordal Holo, Project Director - C10 Holding AS & private | 160 060 | 0,0 % |
Trond Vadset Veibust, CFO - Trollkyrkja AS | 90 000 | 0,0 % |
Henriette Nordstrand, Technical Director - Heno Holding AS | 50 000 | 0,0 % |
Tore-Jakob Reite, Director Strategic Projects | 1 250 | 0,0 % |
Total | 20 244 400 | 4,0 % |
Capital history (NOK thousands) | Date | CapitalIncrease | Share CapitalAfter Change | Par Value | Subscription priceper share | New shares | Total no. of outstanding shares |
Opening balance 1 July 2020 | 5 375 159 | 0,05 | 107 503 182 | ||||
Share options exercised | 10 July 2020 | 30 000 | 5 405 159 | 0,05 | 3,33 | 600 000 | 108 103 182 |
Private placement | 23 July 2020 | 581 395 | 5 986 554 | 0,05 | 4,30 | 11 627 906 | 119 731 088 |
Private placement | 11 September 2020 | 5 000 000 | 10 986 554 | 0,05 | 5,00 | 100 000 000 | 219 731 088 |
Private placement | 23 March 2021 | 4 166 667 | 15 153 221 | 0,05 | 6,00 | 83 333 333 | 303 064 421 |
Acquisition Kraft Laks | 16 August 2021 | 109 535 | 15 262 756 | 0,05 | 7,58 | 2 190 694 | 305 255 115 |
Private placement | 12 October 2021 | 277 068 | 15 539 824 | 0,05 | 7,71 | 5 541 374 | 310 796 489 |
Share options exercised | 26 March 2022 | 81 250 | 15 621 074 | 0,05 | 4,80 | 1 625 000 | 312 421 489 |
Private placement | 5 April 2022 | 1 666 667 | 17 287 741 | 0,05 | 9,00 | 33 333 333 | 345 754 822 |
Private placement | 18 April 2023 | 3 409 091 | 20 696 832 | 0,05 | 7,70 | 68 181 818 | 413 936 640 |
Private placement | 18 June 2024 | 2 433 333 | 23 130 165 | 0,05 | 7,50 | 48 666 660 | 462 603 300 |
The Company entered into an investment agreement with Dongwon Industries and completed a NOK 50 million private placement towards Dongwon Industries in July 2020.
The Company raised NOK 500 million in a private placement in connection with its initial public offering related to the admission on Merkur Market (now Oslo B\u00f8rs) in September 2020. Further, the Company also raised another NOK 500 million in a private placement in March 2021.
In August 2021 the Company acquired 100% of the shares in Kraft Laks AS. As part of the settlement the Company issued 2,190,694 new shares of NOK 7.5775 per share, and thereby increased its equity by NOK 16.6 million. In October 2021 the Company carried out a private placement of USD 5m (NOK ~43m) towards Cargill.
Further, in April 2022 the Company carried out a private placement raising gross proceeds of NOK\u00a0300\u00a0million at a subscription price of NOK 9.00 per share, bringing total raised equity to more than NOK 1.7 billion.
In April 2023 the Company carried out a private placement raising gross proceeds of NOK 525 million at a subscription price of NOK 7.7 per share, bringing total raised equity to more than NOK 2.2 billion.
In June 2024 the Company carried out a private placement raising gross proceed of NOK 365 million at a subsciption price of NOK 7.5 per share, bringing total raised equity to more than NOK 2.5 billion.
Note 21 - Share Capital & Capital history
(NOK thousands) | |||
Nominal value | |||
31 Dec 2024 | 31 Dec 2023 | ||
Ordinary shares | 0,05 | 462 603 306 | 413 936 640 |
Average number of shares | 0,05 | 440 297 748 | 395 531 302 |
Share capital | 23 130 | 20 697 | |
Share premium | 2 415 049 | 2 124 647 | |
Total | 2 438 179 | 2 145 344 |
The number of shares issued in the company at 31 December 2024 was 462,603,306 with a nominal value of NOK 0.05 each. All shares carry equal voting rights.
20 largest shareholders as of 31.12.24 | No of shares | Percentage share |
Ronja Capital Investment AS | 32 407 311 | 7,0 % |
DNB Asset Management | 30 181 466 | 6,5 % |
Arctic Fund Management | 24 569 080 | 5,3 % |
Handelsbanken Fonder | 22 931 481 | 5,0 % |
Farvatn AS | 21 168 366 | 4,6 % |
Dongwon Industries | 17 932 838 | 3,9 % |
Nordea Investment Management | 16 702 022 | 3,6 % |
Rofisk AS | 15 204 563 | 3,3 % |
Kj\u00f8l\u00e5s Stansekniver AS | 13 173 105 | 2,8 % |
Stette Invest AS | 12 410 954 | 2,7 % |
Jakob Hatteland Holding AS | 9 790 519 | 2,1 % |
Ewos AS | 9 480 984 | 2,0 % |
Mevold Invest AS | 9 074 474 | 2,0 % |
Lyngheim Invest AS | 8 449 252 | 1,8 % |
Kristofer Reiten | 7 569 330 | 1,6 % |
Bond\u00f8 Invest AS | 4 614 718 | 1,0 % |
Salmoserve AS | 4 136 666 | 0,9 % |
Hustadlitt AS | 3 624 094 | 0,8 % |
Nordnet Livsforsikring AS | 3 349 404 | 0,7 % |
AS Straen | 3 300 000 | 0,7 % |
Total 20 largest shareholders | 270 070 627 | 58,4 % |
Other shareholders | 192 532 679 | 41,6 % |
Total number of shares | 462 603 306 | 100,0 % |
As of 31 December 2024, shares directly held by members of the Board of Directors, Chief Executive officer, and Executive Management consisted of the following:
No of shares | Percentage share | |
Peder Stette, Member of the board - Stette Invest AS | 12 410 954 | 2,8 % |
Vibecke Bond\u00f8, Member of the board - Bond\u00f8 Invest AS | 4 614 718 | 0,5 % |
Ingjarl Skarv\u00f8y, COO - Terra Mare AS and private | 1 800 150 | 0,4 % |
Trond H\u00e5kon Schaug-Pettersen, CEO - Troha Invest AS | 500 000 | 0,1 % |
Odd Frode Roaldsnes, CCO - Anno Invest AS | 275 000 | 0,1 % |
Jan-Emil Johannessen, Member of the board - Jawendel AS | 173 333 | 0,0 % |
Anne Breiby, Member of the board | 168 935 | 0,0 % |
Kamilla Mordal Holo, Project Director - C10 Holding AS & private | 160 060 | 0,0 % |
Trond Vadset Veibust, CFO - Trollkyrkja AS | 90 000 | 0,0 % |
Henriette Nordstrand, Technical Director - Heno Holding AS | 50 000 | 0,0 % |
Tore-Jakob Reite, Director Strategic Projects | 1 250 | 0,0 % |
Total | 20 244 400 | 4,0 % |
Capital history (NOK thousands) | Date | CapitalIncrease | Share CapitalAfter Change | Par Value | Subscription priceper share | New shares | Total no. of outstanding shares |
Opening balance 1 July 2020 | 5 375 159 | 0,05 | 107 503 182 | ||||
Share options exercised | 10 July 2020 | 30 000 | 5 405 159 | 0,05 | 3,33 | 600 000 | 108 103 182 |
Private placement | 23 July 2020 | 581 395 | 5 986 554 | 0,05 | 4,30 | 11 627 906 | 119 731 088 |
Private placement | 11 September 2020 | 5 000 000 | 10 986 554 | 0,05 | 5,00 | 100 000 000 | 219 731 088 |
Private placement | 23 March 2021 | 4 166 667 | 15 153 221 | 0,05 | 6,00 | 83 333 333 | 303 064 421 |
Acquisition Kraft Laks | 16 August 2021 | 109 535 | 15 262 756 | 0,05 | 7,58 | 2 190 694 | 305 255 115 |
Private placement | 12 October 2021 | 277 068 | 15 539 824 | 0,05 | 7,71 | 5 541 374 | 310 796 489 |
Share options exercised | 26 March 2022 | 81 250 | 15 621 074 | 0,05 | 4,80 | 1 625 000 | 312 421 489 |
Private placement | 5 April 2022 | 1 666 667 | 17 287 741 | 0,05 | 9,00 | 33 333 333 | 345 754 822 |
Private placement | 18 April 2023 | 3 409 091 | 20 696 832 | 0,05 | 7,70 | 68 181 818 | 413 936 640 |
Private placement | 18 June 2024 | 2 433 333 | 23 130 165 | 0,05 | 7,50 | 48 666 660 | 462 603 300 |
The Company entered into an investment agreement with Dongwon Industries and completed a NOK 50 million private placement towards Dongwon Industries in July 2020.
The Company raised NOK 500 million in a private placement in connection with its initial public offering related to the admission on Merkur Market (now Oslo B\u00f8rs) in September 2020. Further, the Company also raised another NOK 500 million in a private placement in March 2021.
In August 2021 the Company acquired 100% of the shares in Kraft Laks AS. As part of the settlement the Company issued 2,190,694 new shares of NOK 7.5775 per share, and thereby increased its equity by NOK 16.6 million. In October 2021 the Company carried out a private placement of USD 5m (NOK ~43m) towards Cargill.
Further, in April 2022 the Company carried out a private placement raising gross proceeds of NOK\u00a0300\u00a0million at a subscription price of NOK 9.00 per share, bringing total raised equity to more than NOK 1.7 billion.
In April 2023 the Company carried out a private placement raising gross proceeds of NOK 525 million at a subscription price of NOK 7.7 per share, bringing total raised equity to more than NOK 2.2 billion.
In June 2024 the Company carried out a private placement raising gross proceed of NOK 365 million at a subsciption price of NOK 7.5 per share, bringing total raised equity to more than NOK 2.5 billion.
Note 22 - Interest bearing debt
Long-term interest bearing debt (NOK thousands) | 31.12.2024 | 31.12.2023 |
Debt to credit institutions | 569 100 | 569 969 |
Other long-term interest bearing debt | 0 | 0 |
Leasing liabilities | 9 668 | 8 189 |
Total long-term interest-bearing debt | 578 768 | 578 158 |
Short-term interest bearing debt (NOK thousands) | 31.12.2024 | 31.12.2023 |
Debt to credit institutions | 158 488 | 103 275 |
Other short-term interest bearing debt | 0 | 0 |
Leasing liabilitites | 5 317 | 4 350 |
Total short-term interest-bearing debt | 163 805 | 107 625 |
Total interest-bearing debt | 742 573 | 685 783 |
Cash & cash equivalents | 429 462 | 386 396 |
Net interest-bearing debt | 313 111 | 299 387 |
In Q1 2023 the Group signed a NOK 1,550 million green debt financing package with DNB and Nordea relating to phase 1 and 2 at Indre Har\u00f8y, thus refinancing the existing senior secured debt financing package. The new package consisted of a NOK 525 million non-amortizing term loan facility to the existing NOK 525 million construction loan relating to phase 1, a NOK 250 million revolving credit facility available for general corporate purposes including Indre Har\u00f8y phase 2 capex and a NOK 775 million construction facility available for financing of capex relating to phase 2 at Indre Har\u00f8y.
In June 2024 the Group expanded its existing senior secured debt financing package related to Indre Har\u00f8y Phase 1 and 2, from 1,550 NOKm to 2,225 NOKm. Additionally, the Company has a NOK 150 million Overdraft Facility with Nordea.
As per 31 December 2024, NOK 525 million was drawn of the secured green debt financing package. In ad-dition, the Company has drawn NOK 145 million, of the NOK 150 million available, of the Overdraft Facility.
The Group has also entered into loan agreements for a total of NOK 60 million relating to Salmon Evolution Dale AS of which around NOK 58 million was drawn as per 31 December 2024. This financing is for financing of working capital, investments in Salmon Evolution Dale as well as refinancing of the seller\u2019s credit from the acquisition of Salmon Evolution Dale AS.
The above table does not include other long-term liabilities of NOK 3.6 million related to water rights in Salmon Evolution Dale AS.
The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin.
Financial covenants
The most important financial covenants for the long-term financing of the Group are, respectively, a solvency requirement that the borrower\u2019s (Salmon Evolution Norway AS) book equity ratio (including intra-group loans) shall be minimum 45%. Further, there is a profitability requirement linked to the borrower\u2019s EBITDA which shall be greater than NOK 250 million on a last 12-month basis from Q2 2027. Quarterly EBITDA figures shall be measured from Q2 2024 with set minimum EBITDA levels reflecting the company\u2019s gradual ramp up of production volumes and profitability. In anticipation of not being able to meet its minimum EBITDA requirement for Q4 2024, Q1 2025 and Q2 2025 the loan agreement was amended from lender dated 4 December 2024.
Finally, there is a minimum cash requirement that stipulates that the obligors (Salmon Evolution Norway AS, Salmon Evolution Sales AS and Salmon Evolution ASA) cash balance shall be greater than NOK 100 million at any time. Any undrawn and available amounts under the revolving facility and the overdraft is included in the calculation of the cash balance.
As per 31 December 2024 the Company is in compliance with all financial covenants.
Information supporting the cash flows (NOK thousands) | Interest bearing debt | |
Short term | Long term | |
Balance at January 1, 2023 | 58 906 | 531 394 |
Repayment of loans and borrowings | -12 841 | 0 |
Proceeds from new bank loan | 60 763 | 56 800 |
Obligations due to land and water rights | 0 | 153 |
Change in lease liabilities | 797 | -1 487 |
Balance at Dec 31, 2023 | 107 625 | 586 859 |
Balance at January 1, 2024 | 107 625 | 586 859 |
Repayment of loans and borrowings | 0 | -869 |
Proceeds from new bank loan | 55 213 | 0 |
Change in obligations due to land and water rights | 0 | -5 059 |
Change in lease liabilities* | 968 | 1 480 |
Balance at Dec 31, 2024 | 163 805 | 582 411 |
*See note 17for more information about leases
Note 22 - Interest bearing debt
Long-term interest bearing debt (NOK thousands) | 31.12.2024 | 31.12.2023 |
Debt to credit institutions | 569 100 | 569 969 |
Other long-term interest bearing debt | 0 | 0 |
Leasing liabilities | 9 668 | 8 189 |
Total long-term interest-bearing debt | 578 768 | 578 158 |
Short-term interest bearing debt (NOK thousands) | 31.12.2024 | 31.12.2023 |
Debt to credit institutions | 158 488 | 103 275 |
Other short-term interest bearing debt | 0 | 0 |
Leasing liabilitites | 5 317 | 4 350 |
Total short-term interest-bearing debt | 163 805 | 107 625 |
Total interest-bearing debt | 742 573 | 685 783 |
Cash & cash equivalents | 429 462 | 386 396 |
Net interest-bearing debt | 313 111 | 299 387 |
In Q1 2023 the Group signed a NOK 1,550 million green debt financing package with DNB and Nordea relating to phase 1 and 2 at Indre Har\u00f8y, thus refinancing the existing senior secured debt financing package. The new package consisted of a NOK 525 million non-amortizing term loan facility to the existing NOK 525 million construction loan relating to phase 1, a NOK 250 million revolving credit facility available for general corporate purposes including Indre Har\u00f8y phase 2 capex and a NOK 775 million construction facility available for financing of capex relating to phase 2 at Indre Har\u00f8y.
In June 2024 the Group expanded its existing senior secured debt financing package related to Indre Har\u00f8y Phase 1 and 2, from 1,550 NOKm to 2,225 NOKm. Additionally, the Company has a NOK 150 million Overdraft Facility with Nordea.
As per 31 December 2024, NOK 525 million was drawn of the secured green debt financing package. In ad-dition, the Company has drawn NOK 145 million, of the NOK 150 million available, of the Overdraft Facility.
The Group has also entered into loan agreements for a total of NOK 60 million relating to Salmon Evolution Dale AS of which around NOK 58 million was drawn as per 31 December 2024. This financing is for financing of working capital, investments in Salmon Evolution Dale as well as refinancing of the seller\u2019s credit from the acquisition of Salmon Evolution Dale AS.
The above table does not include other long-term liabilities of NOK 3.6 million related to water rights in Salmon Evolution Dale AS.
The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin.
Financial covenants
The most important financial covenants for the long-term financing of the Group are, respectively, a solvency requirement that the borrower\u2019s (Salmon Evolution Norway AS) book equity ratio (including intra-group loans) shall be minimum 45%. Further, there is a profitability requirement linked to the borrower\u2019s EBITDA which shall be greater than NOK 250 million on a last 12-month basis from Q2 2027. Quarterly EBITDA figures shall be measured from Q2 2024 with set minimum EBITDA levels reflecting the company\u2019s gradual ramp up of production volumes and profitability. In anticipation of not being able to meet its minimum EBITDA requirement for Q4 2024, Q1 2025 and Q2 2025 the loan agreement was amended from lender dated 4 December 2024.
Finally, there is a minimum cash requirement that stipulates that the obligors (Salmon Evolution Norway AS, Salmon Evolution Sales AS and Salmon Evolution ASA) cash balance shall be greater than NOK 100 million at any time. Any undrawn and available amounts under the revolving facility and the overdraft is included in the calculation of the cash balance.
As per 31 December 2024 the Company is in compliance with all financial covenants.
Information supporting the cash flows (NOK thousands) | Interest bearing debt | |
Short term | Long term | |
Balance at January 1, 2023 | 58 906 | 531 394 |
Repayment of loans and borrowings | -12 841 | 0 |
Proceeds from new bank loan | 60 763 | 56 800 |
Obligations due to land and water rights | 0 | 153 |
Change in lease liabilities | 797 | -1 487 |
Balance at Dec 31, 2023 | 107 625 | 586 859 |
Balance at January 1, 2024 | 107 625 | 586 859 |
Repayment of loans and borrowings | 0 | -869 |
Proceeds from new bank loan | 55 213 | 0 |
Change in obligations due to land and water rights | 0 | -5 059 |
Change in lease liabilities* | 968 | 1 480 |
Balance at Dec 31, 2024 | 163 805 | 582 411 |
*See note 17for more information about leases
Note 23 - Trade and other current liabilities
Trade payables (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Trade payables operation | 98 527 | 33 812 |
Trade payable constructions | 94 857 | 37 687 |
Total trade payables | 193 384 | 71 499 |
Social security and other taxes (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Tax payable | 0 | 415 |
Payroll withholding tax | 3 641 | 3 563 |
Employer's national insurance contributions | 3 439 | 3 329 |
VAT payable | 0 | 966 |
Total social security and other taxes | 7 080 | 8 273 |
Other current liabilities (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Accrued salaries, holiday pay and bonus provisions | 9 846 | 10 410 |
Accrued interest expense | 4 562 | 4 225 |
Total other current liabilities | 14 408 | 14 635 |
Note 23 - Trade and other current liabilities
Trade payables (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Trade payables operation | 98 527 | 33 812 |
Trade payable constructions | 94 857 | 37 687 |
Total trade payables | 193 384 | 71 499 |
Social security and other taxes (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Tax payable | 0 | 415 |
Payroll withholding tax | 3 641 | 3 563 |
Employer's national insurance contributions | 3 439 | 3 329 |
VAT payable | 0 | 966 |
Total social security and other taxes | 7 080 | 8 273 |
Other current liabilities (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Accrued salaries, holiday pay and bonus provisions | 9 846 | 10 410 |
Accrued interest expense | 4 562 | 4 225 |
Total other current liabilities | 14 408 | 14 635 |
Note 23 - Trade and other current liabilities
Trade payables (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Trade payables operation | 98 527 | 33 812 |
Trade payable constructions | 94 857 | 37 687 |
Total trade payables | 193 384 | 71 499 |
Social security and other taxes (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Tax payable | 0 | 415 |
Payroll withholding tax | 3 641 | 3 563 |
Employer's national insurance contributions | 3 439 | 3 329 |
VAT payable | 0 | 966 |
Total social security and other taxes | 7 080 | 8 273 |
Other current liabilities (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Accrued salaries, holiday pay and bonus provisions | 9 846 | 10 410 |
Accrued interest expense | 4 562 | 4 225 |
Total other current liabilities | 14 408 | 14 635 |
Note 23 - Trade and other current liabilities
Trade payables (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Trade payables operation | 98 527 | 33 812 |
Trade payable constructions | 94 857 | 37 687 |
Total trade payables | 193 384 | 71 499 |
Social security and other taxes (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Tax payable | 0 | 415 |
Payroll withholding tax | 3 641 | 3 563 |
Employer's national insurance contributions | 3 439 | 3 329 |
VAT payable | 0 | 966 |
Total social security and other taxes | 7 080 | 8 273 |
Other current liabilities (NOK thousands) | 31 Dec 2024 | 31 Dec 2023 |
Accrued salaries, holiday pay and bonus provisions | 9 846 | 10 410 |
Accrued interest expense | 4 562 | 4 225 |
Total other current liabilities | 14 408 | 14 635 |
Note 24 - Related party balances and transactions
During the ordinary course of business, the Group engages in certain transactions with related parties. The following is a summary of related party transactions carried out in the period:
The Group has a consultancy agreement with Ronja Capital Investment AS (Tore T\u00f8nseth, chair of the Board) and Kj\u00f8les Stansekniver AS (Frode Kj\u00f8l\u00e5s, chair nomination committee) relating to assistance in certain projects on an ad-hoc basis.
The Group has during 2024 purchased legal services from Adviso Advokatfirma AS in the amount of NOK 55,000 (77,000 in 2023) in its ordinary course of business. Board member Ingvild Vartdal is a partner at Adviso Advokatfirma AS but has not had any role in the services rendered to Salmon Evolution.
In Addition, the Group have purchased well boat services both from Rostein AS in the amount of NOK 10.9 million. Rofisk AS owns Rostein AS (100%), and former board member (until 2023) Glen Allan Bradley is the chair of the Board in Rofisk AS.
Income from related parties (NOK thousands) | 2024 | 2023 |
K Smart Farming Co., Ltd (Board member) | 2 047 | 9 765 |
Total (incl.VAT) | 2 047 | 9 765 |
Expenses to related parties(incl.VAT) (NOK thousands) | 2024 | 2023 |
Rofisk AS (Board member, until 2023) | 10 898 | 4 291 |
Adviso Advokatfirma AS (Board member) | 55 | 77 |
Kj\u00f8l\u00e5s Stansekniver AS (Nomination committee) | 181 | 1 081 |
Stette Eiendom AS (Board member) | 0 | 15 |
Ronja Capital Investment AS (Chair of the board) | 828 | 0 |
Total (incl.VAT) | 11 961 | 5 464 |
Current liabilities to related parties (NOK thousands) | 2024 | 2023 |
Rofisk AS (Board member, until 2023) | 868 | 890 |
Kj\u00f8l\u00e5s Stansekniver AS (Nomination committee) | 0 | 40 |
Total current liabilities to related parties | 868 | 930 |
Current receivables from related parties (NOK thousands) | 2024 | 2023 |
K Smart Farming Co., Ltd (Board member) | 14 834 | 11 326 |
Total current liabilities to related parties | 14 834 | 11 326 |
There were no non-current liabilities to related parties as of 31.12.24
Note 25 - Climate risk
Climate risks may affect both production and financial performance through physical and transitional risk.
Physical Risks
Although the company operates in closed systems, its operations may still be impacted by changes in weather and temperature conditions. Climate change could lead to rising water temperatures, which in turn may affect water quality. As the operation is land-based, the company already closely monitors and controls water quality, which helps minimize the potential negative effects of changes in water temperature.
Furthermore, extreme weather events, such as heavy rainfall, storms, or flooding, could cause operational disruptions, infrastructure damage, and increased maintenance costs, which may affect production. During the design and construction of the facility, physical climate risks were taken into consideration, and contingency plans have been implemented to minimize potential disruptions to operations.
Transitional Risks
Transitional risks include regulatory changes and requirements, as well as shifts in consumer behavior, which could impact the group\u2019s operational and financial performance. The company is actively working to reduce its carbon footprint through energy efficiency measures and circular production processes. The growing demand for sustainable farmed salmon is seen as an opportunity rather than a risk, and the company is well-positioned to meet this demand.
Accounting Implications
In accordance with IFRS, the company considers climate risks as part of its asset and liability valuations. Based on the current assessment of climate risks, the company has concluded that these risks do not currently have a material impact on the financial statements. Necessary investments in technology and compliance with evolving regulations are considered manageable within the company\u2019s existing capital structure. No immediate need for asset impairments or other significant adjustments to
the financial statements due to climate risks has been identified.
The company will continue to monitor the development of climate risks and make any necessary adjustments to ensure long-term sustainable operations and compliance with all regulatory requirements. The group is committed to aligning with climate risk reporting standards. For more information on how we manage climate risks and minimize their impact, please refer to our ESG report.
Note 26 - Events after the reporting date
No material subsequent events.
The Board of Directors of Salmon Evolution ASA
Elnesv\u00e5gen/\u00c5lesund 10 April 2025