Andfjord Salmon: Claim for compensation against main contractor

03 Dec 2025 19:10 CET

3.12.2025 19:10:39 CET | Andfjord Salmon | Non-regulatory press releases

Andfjord Salmon Group AS ("Andfjord Salmon") has submitted a claim of NOK 1+
billion against main contractor AF Hæhre & Contur Ans ("the contractor"). The
claim relates to grossly negligent performance of the contractor's obligations
and wilful breach of its civil works contract in connection with the
construction of Andfjord Salmon's land-based aquaculture facility at Kvalnes,
Andøya, Norway.

The claim, which exceeds NOK 1 billion, reflects previously communicated budget
revisions including the NOK 500 million upward revised capex budget announced on
28 May this year as well as earlier communicated changes.

The claim is related to recovery of incurred costs resulting from the
contractor's gross negligence in executing construction methods recommended by
the contractor, insufficient cost control, inadequate project management and
prioritization of work, incorrect invoicing, and compensation for costs and
losses arising from the contractor's wilful breach of contract. While the
construction method itself is sound, the issues stem from the contractor's
inability to deliver the work within the agreed cost framework.

FISH FARMING OPERATIONS UNAFFECTED

Over the past couple of months, Andfjord Salmon has released a total of NOK 1.1
billion smolt in pools K0 and K1. The smolt releases have been highly
successful, proven by high survival rates and solid growth. The ongoing fish
farming operations are unaffected by the breach of contract.

ENGAGEMENT WITH NEW CONTRACTORS

Pool K0 was completed in 2022, and pool K1 was completed in September this year.
The construction of the next pool, K3, is close to completion. The need for
further new pools for splitting of biomass and new releases will not arise until
the spring/summer of 2026.

Andfjord Salmon has already engaged with several possible new contractors for
completion of the next two pools - K2 and K4 - that are part of the ongoing
build-out phase. Andfjord Salmon estimates mobilisation costs of approximately
NOK 20 million to replace the current main contractor.

The change of contractor is expected to have a non-material effect on the
company's production plans.

Due to Andfjord Salmon's NOK 1+ billion claim, the company has withheld further
payment of invoices to AF Hæhre & Contur.

CONTACTS

* Investors: Bjarne Martinsen, CFO, Andfjord Salmon Group AS, +47 975 08 345,
bjarne.martinsen@andfjord.no
* Media: Martin Rasmussen, CEO, Andfjord Salmon Group AS, +47 975 08 665,
martin@andfjord.no

ABOUT ANDFJORD SALMON

Located at Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord
Salmon is developing the world's most sustainable and fish-friendly aquaculture
facility of its kind. Through a proprietary flow-through system, Andfjord Salmon
combines the best from ocean and land-based salmon farming. In its first
production cycle, the company achieved an industry-leading survival rate of 97.5
percent, feed conversion ratio of 1.05, superior share of 91.1 percent, and
required 1 kWh to produce one kilo of salmon. For more information, see
www.andfjordsalmon.com - http://www.andfjordsalmon.com/.

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