EBIT down 6%, but NRS has record Q1 on sales front

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Norway Royal Salmon has posted an operational EBIT of EUR 20.8 million for the first quarter 2018, and the result was down six percent over the year-ago period.

The company achieved an EBIT per kilogram of EUR 1.95, which was down from the EUR 2.98 achieved in the same span of 2017.

“The achieved salmon price was lower in the first quarter of 2018 compared to the same quarter last year. The price of salmon increased significantly during the quarter and demand for salmon is seen as strong,” said CEO Charles Hostlund.

The operational said its cash flow in the first quarter was EUR 32.9 million. Although the Group paid EUR 6.9 million for 551 tonnes of extra biomass allowances, net interest-bearing debt decreased in the quarter by EUR 19.5 million to EUR 46.4 million.

Management said a return on capital employed during the last four quarters was 38 percent.

Norway growth
In north Norway, the company’s Region North unit saw an operational EBIT of EUR 19.2 million in the quarter, compared with EUR 15.6 million in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 19.22 compared with NOK 27.28 in the corresponding quarter last year.

In Region South posted an operational EBIT of EUR 2.2 million in the quarter, compared with EUR 5.8 million in the corresponding quarter last year. Operational EBIT per kg gutted weight was EUR 1.63 compared with EUR 3.42 in the corresponding quarter last year.

NRS harvested its highest volume in a quarter of 10, 935 tonnes gutted weight, which is 52 per cent higher than in the same quarter last year. 9 597 tonnes of the total volume were harvested in Region North and 1 338 tonnes in Region South. Estimated harvest volume is 40,000 tonnes for 2018, an increase of 25 percent from 2017.

Historic
The sales business sold 22,540 tonnes salmon during the quarter, an increase of 43 per cent from the corresponding quarter last year. This is the highest sold volume for a quarter in the history of NRS.

“NRS was awarded 8 development permits (5 990 t in maximum allowable biomass) for the development of Arctic Offshore Farming, an offshore facility that allows for farming in more exposed areas. This is a recognition of the active role in the development of the aquaculture industry for the future that Norway Royal Salmon takes, Hostlund said.