Salmon Evolution secures $25 million facility to weather weak market conditions.
Leading land-based salmon producer, Salmon Evolution, has secured a new credit facility of up to NOK 250 million ($24.75 million/€21.75 million) from DNB Bank and Nordea Bank, as it looks to strengthen financial flexibility amid sustained weakness in salmon prices.
Land-based salmon producers typically rely on prices staying above a certain threshold to remain viable. Unlike traditional net-pen operations, their cost base is higher due to infrastructure, energy, and recirculation system demands. In recent months, market prices have fallen short of expectations, placing pressure on balance sheets across the segment. As one of the sector’s most prominent operators, Salmon Evolution’s move signals the challenges facing even its leading players.
The new 12-month facility, with an option to extend for a further six months, has received credit committee approvals and is subject to final documentation. In addition, the company has increased its existing overdraft facility with Nordea from NOK 150 million to NOK 200 million ($19.80 million/€17.40 million).
A portion of the new funding will be used for the pre-grow-out department at Indre Harøy, where the second phase of construction is progressing on schedule, according to the company’s Q1 2025 report.
To accommodate current conditions, Salmon Evolution has also agreed with its lenders to amend EBITDA covenant requirements through 2025. This move provides the company with headroom as it continues to scale operations while navigating softer-than-anticipated market dynamics.
The company stated that the credit facilities are based on standard market terms and aim to ensure operational continuity during a volatile period.