About the company
The Company is a public limited company incorporated under the laws of the Republic of Cyprus, established for the purpose of providing business-critical services to salmon farmers, including transportation- and biological treatment of fish. The Company’s fully owned subsidiaries have entered into contracts for the construction of four 5,000 m³ Live Fish Carriers (LFCs) (the “Vessels”) to be delivered in 2029. The Company also holds options for up to six additional similar LFC vessels.
The Company is focused on the large-capacity segment of the wellboat market. Whilst the size of modern wellboats generally ranges from 2,500 to 4,000 m³, the Company’s Vessels will each have a length overall of 87.1 metres, a breadth moulded of 20.9 metres, a live fish hold capacity of approximately 5,000 m³, and accommodation for 18 persons on board. The Vessels will be equipped with dynamic positioning capability and have an installed effect of approximately 5,700 eKW, with main propulsion provided by two diesel-electric engines of 1,499 kW each, giving a service speed of 12.0 knots.
The Vessels have been designed by Salt Ship Design and MMC First Process will deliver state-of-the-art fish handling systems for the vessels. The Vessels will incorporate MMC AQU Green circulation technology, providing lower energy consumption and a more hygienic water circulation system. The base fish handling package includes transverse circulation, movable sliding bulkheads, loading hoses, dewatering capacities, a freshwater buffer of approximately 300 m³, UV treatment, a biomass system and RSW cooling, amongst other items. The Vessels are ordered without treatment equipment installed in order to maintain full flexibility for individual charterers, who may install either mechanical delousing equipment or freshwater treatment via a Reverse Osmosis plant of up to 10,000 m³/24 hours, or a combination of both.
Construction will be carried out on a turnkey basis by CIMC Raffles in China, with an expected delivery schedule from Q1 2029 to Q4 2029 and a contract price of USD 63.85 million per Vessel.
The main objective of the Company is to provide maritime aqua-services for the salmon farming industry. The Company has been able to secure attractive newbuild contracts for a series of wellboats at a Tier 1 yard in China at significantly lower newbuild prices compared to yards in Norway and Europe. The initial order is for four firm vessels and up to six optional vessels. Upon delivery of the vessels, the Company aims to provide high-quality services and is committed to maintaining the highest standards within fish welfare, biosafety and HSEQ. This is considered critical to adhere to the increased regulations and requirements in the salmon farming industry.
Financial objectives: The wellboat industry is characterized by medium to long term charter contracts to salmon farmers. The Company’s objective will to be pursue similar contracts for its fleet of wellboats. The Company aims to maximize the return to its shareholders by entering into charter contracts providing attractive return on its capital employed. The Company believes it is well position to secure attractive financing on its vessels upon securing term charter contracts for its vessels. One of the Company’s objectives will be to optimize its financing basis its secured charter contract, to maximize the free cash flow available per share for potential dividend payments. A wide range of financing sources will be explored, including the Chinese leasing market.
Non-financial objectives: The Company is committed to operating to the highest standards of fish welfare, biosafety and HSEQ. These non-financial objectives are considered core to the Company’s commercial proposition, as salmon farmers increasingly require service providers that can demonstrate compliance with evolving Norwegian and international regulatory frameworks governing treatment methods, biosecurity protocols and environmental impact. The Company’s vessels are designed with full flexibility to accommodate current and future treatment systems, supporting the Group’s objective of remaining a preferred partner to salmon farmers across different regulatory environments.
Future challenges and prospects: The Company’s near-term priorities and key challenges include: (i) securing long-term time charter contracts with creditworthy salmon farmers ahead of vessel deliveries; (ii) securing debt financing for the Vessels on acceptable terms ahead of vessel deliveries (iii) successfully overseeing the construction and timely delivery of all four Vessels from CIMC Raffles in China; and (iv) building the organisation and operational platform required to commence commercial operations.
Growth strategy: The Company believes its options for up to six additional wellboats are attractively priced and aims to grow its fleet beyond the initial four firm vessel. However, the Company will be disciplined in its approach in evaluating if any of the options are to be declared or not, and only pursue growth if it’s viewed as accretive to its shareholders.