Andfjord Salmon beat first-quarter earnings expectations as lower construction spending and an accelerated post-smolt sale improved the outlook for the Norwegian land-based salmon farmer, analysts said Thursday.
EBITDA came in at NOK -17 million (€1.58 million), ahead of a NOK -19 million (€1.77 million) FactSet consensus and above Fearnley Securities’ NOK -28 million (€2.6 million) estimate.
The company, which remains pre-revenue, also reported capex of NOK 129 million (€12 million), below both Fearnley and Arctic Securities forecasts, helping reduce net debt including leases to NOK 1.58 billion (€147 million).
Analysts focused on the timing of Andfjord’s first planned post-smolt sale to Eidsfjord Sjøfarm, now expected in mid-June after stronger-than-expected growth in pool K1. The company plans to sell about 450,000 fish at 1.3-1.4 kilograms live weight, implying volumes of as much as 630 tonnes.
That compares with Fearnley Securities’ previous estimate of 333 tonnes.
Arctic Securities analyst Christian Olsen Nordby said the earlier sale should bring forward cash generation and ease short-term financing pressure.
The bank also pointed to continued strong biological performance, with standing biomass reaching 1,584 tonnes and near-zero mortality in pool K1 after about 750,000 smolt were stocked in November.
Andfjord separately signed fixed-price construction contracts for pools K5 and K7, a move Arctic said reduces exposure to further cost overruns as the company expands production capacity at Kvalnes.
The contractor dispute tied to earlier construction phases remains a key overhang on the shares, according to Arctic. Disputed trade payables rose to NOK 690 million (€64.2 million) at the end of the quarter, from NOK 458 million (€42.6 million) three months earlier.
Fearnley Securities maintained a Hold recommendation and NOK 30 target price on the stock, while Arctic Securities reiterated its Buy recommendation and NOK 39 target price.
