Good day, everyone. Welcome to the Atlantic Sapphire 2025 Financial Results Presentation. My name is Gunnar Aasbø-Skinderhaug. I'm the CFO of the company, and together with me I have Pedro Courard, the CEO.
Thank you, Gunnar . Hello everybody. I will continue with the presentation. 2025 was a good year for Atlantic Sapphire. Among our most important improvements, our revenues jumped from $23 million in 2024 to more than $43 million in 2025, equivalent to an 87% increase. Reasons behind that were the higher volume and higher average weight, allowing us to reach premium prices. While all operational KPIs improved during 2025, we are now in a challenging financial situation as consequence of lower revenues and the delay in cost reduction. During March 2026, the company entered into a bridge loan agreement for a total amount of $10 million, expecting to reach a final solution to finance our operation until EBITDA breakeven.
Last year, we were able to validate our phase I from an operational standpoint, keeping a stable biology while we consistently increased production parameters like standing biomass and harvest. In terms of operations, the last pending goal is improving feed conversion, process that is linked to the biofiltration and degassing projects that are currently under execution. Being feeding capacity one of our most important KPIs, we have consistently increased it during the last six quarters, showing a good path. Losses has been low, in level not higher than 1% in the saltwater stage. While feed conversion is higher than our ambitions, we are working on a specific plan to improve this relevant parameter. Aligned with our feed consumption increase, we have been able to keep increasing both our biomass gain and standing biomass.
As a consequence of all of the above, during 2025 we increased our harvest volume, harvest average weights, and prices. Premium share in term of price has been kept at above 9%, confirming our good commercial positioning. Positive tendency also remained during Q1 of 2026, validating all the improvement action carried out during last quarters. Gunnar will continue with the presentation.
Revenue increased significantly from 2024 to 2025, mainly driven by increased sales price from selling larger fish in a premium priced market. Revenue was lower than expected. Harvest volume was 5.6% lower with 5,096 tons harvested versus expected harvest volume of 5,400 tons. Average weight was lower than planned, especially in the Q4 , which gave a lower sales price than planned. Harvest waste was lower due to some batches experiencing growth challenges and thus higher FCR towards the end of the cycle. Cost of goods sold in 2025 has been higher than planned. The cost increased by $3 million, with higher harvest volume. Cost per kilogram fish produced was reduced. The cost of cooling water increased in 2025 compared to prior years.
We increased the volume of new water going into the farm, thus also increased the capacity of cooling water. In parallel, we have started implementing new and more efficient cooling systems with more heat exchanger capacity, as well as using water-cooled chillers to replace prior air-cooled chillers. This will improve energy efficiency significantly. The solution will be commissioned throughout the first half of 2026. The farm has had significant costs during 2025 related to maintenance as department by department has performed planned maintenance activities to increase the farm's operating stability. These maintenance costs have been expensed in 2025 and are part of the cost of goods sold. Increased production give an economies of scale effect that partly offsets the increased cost just mentioned.
Administrative cost has decreased in 2025 as the company reduced SG&A costs, partly offset by adding more management resources to the company. The company has done an impairment of non-current assets of $115 million. For valuation of the company's assets, we used a scenario model where resuming construction of phase II is one outcome and maintaining operation of just phase I is another. With today's capital markets and availability of funding for phase II, we consider it to be more likely that the company continues without completing phase II. The scenario weighting has been amended so that the probability of continuing with phase I only is set to 55%, and the probability of completing phase II is set to 45%. These scenario weighting can change going forward dependent on the capital markets and the access to capital for expansion.
Net finance expenses increased by $6 million, driven by increased interest-bearing debt and the cost related to establishing new loan. It's partly offset by financial gain on former convertible loan, which was merged into the new convertible loan at 80% valuation. The 20% reduction of the loan is recorded as financial income. Cash flow from operating activities improved by $26 million in 2025, mainly driven by increased revenue. Operating cash flow is lower than expected, and the company requires funding, and I will come back to that on a separate slide. Investing activities were lower than in 2024. We started several projects in 2025 that will continue and commission into 2026. The majority of payments related to these projects will happen in 2026.
Financing activities of $35 million are linked to the capital raise through the new convertible loan in the second half of 2026. For the balance sheet, the numbers are affected by results in 2025. The $115 million impairment reduces non-current assets and equity. The debt increased with the new convertible loan in 2025 and consists, at the end of the year, of long-term bank loans of $45 million that matures in 2027, a revolving credit facility of up to $20 million dependent on current borrowing base, of which $5 million was drawn at the end of the year, and the convertible loan of $60 million that matures in 2030. The equity is $12 million or 9% at the end of 2025.
As mentioned, the revenue has been lower, and the cost improvements have been delayed compared to the plan for 2025. The consequence is that the company needs additional funding to reach EBITDA breakeven. In late March, we secured a $10 million bridge loan, which is now fully dispersed and which matures on May 15th. The company needs $25 million-$30 million in liquidity to fund the company to EBITDA breakeven status, including repaying the bridge loan that matures on May 15th. We are in dialogue with the largest shareholders that combined represent 63% of the shares and 93% of the convertible loan for a solution.
The bridge loan was provided from these investors. As mentioned in the stock exchange notices in March, the company has received an indicative offer for a comprehensive refinancing from the investor group of the largest current investors.
The potential offer includes a voluntary offer to purchase remaining shares in the company at NOK 0.8 per share and raise capital at NOK 0.10 per share, as well as converting the investor group's share of the convertible loan minus a 23% value reduction into equity at NOK 0.1 per share. The discussions with the investor group are progressing positively, but we have not entered into any final agreement for refinancing yet. We have not received or identified any alternative solution that would solve the financing requirement in a satisfactory manner. That concludes the 2025 annual report presentation. We welcome investors to submit their questions on email at investorrelations@atlanticsapphire.com, and Atlantic Sapphire are aiming to respond to questions in a timely manner. Thank you all