Today Norway Royal Salmon (NRS) reports the highest quarterly operational EBIT and margins in the history of the group. Operational EBIT for the third quarter of 2016 was MNOK 218 and EBIT per kg was NOK 30.35. Corresponding figures for the same quarter last year are MNOK 23 and NOK 9.24.
- We are very pleased that NRS achieved a record result for the third consecutive quarter. The reason for the good quarterly result is high salmon prices as well as low and stable production costs in Region North and substantially lower production costs compared to last quarter in Region South, says CEO Charles Høstlund.
The result before tax and fair value adjustments for the third quarter was MNOK 269, after a gain from financial assets of MNOK 39 were recognized. Earnings per share before fair value adjustments was NOK 4.92 for the quarter.
Cash flow from operational activities was MNOK 119 in the quarter. The Group's net interest bearing debt decreased in the quarter by MNOK 160. The group now has net bank deposits of MNOK 13. Total equity increased by MNOK 237 to MNOK 1 605 at the end of the quarter, which equates an equity ratio of 50 per cent. Return on equity after tax and fair value adjustments for the last four quarters is 65 per cent.
Region North
Region North posted an operational EBIT of MNOK 220.3 in the quarter, compared with MNOK 60.2 in the corresponding quarter last year. Operational EBIT per kg gutted weight before fixed price contracts was NOK 34.15, compared with NOK 9.69 in the corresponding quarter last year.
Region South
Region South posted an operational EBIT of MNOK 8.5 in the quarter, compared with MNOK 0.1 in the corresponding quarter last year. Operational EBIT per kg gutted weight before fixed price contracts was NOK 21.79, compared with NOK 0.24 in the corresponding quarter last year.
NRS harvested 7 537 tonnes gutted weight during the quarter, 16 per cent more than in the same quarter last year. 7 086 tonnes of the total volume was harvested in Region North and 451 tonnes in Region South. Estimated harvest volume is 26 700 tonnes for 2016 and 34 000 tonnes for 2017, an increase of 27 per cent.
- NRS has released 10.1 million smolts to the sea in 2016 and expects a significant build-up of biomass next year, says Charles Høstlund.
The sales business sold 17 662 tonnes during the quarter, 8 % more than in the corresponding quarter last year. The sales business had a good price achievement in the quarter.
The price of salmon in the quarter was the second highest price recorded in a quarter for the last 20 years, only the second quarter of 2016 have had higher prices. For 2016, expected global supply growth will be negative in the range of 6 to 8 per cent and in the longer term, global growth is expected to continue to be low. This provides the basis for a positive market outlook for 2016 and in the longer term for the industry.
For more information, please contact:
- CEO Charles Høstlund, +47 994 18 449
- CFO Ola Loe, +47 911 79 411.
Norway Royal Salmon ASA in brief
Norway Royal Salmon ASA (NRS) is the majority shareholder in four fish farming companies, which own a combined total of 35 production licenses, and is a minority shareholder in three fish farming companies (associates) which together own ten production licenses. NRS is an attractively positioned fish farming group, which through an extensive network of collaborating enterprises and in-house production units, offers salmon to the market through its own sales organisation. For further details, please visit www.norwayroyalsalmon.com.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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