Demanding quarter, but NTS posts comfortable operating profit

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Fully integrated aquaculture group, NTS posted operating revenues of EUR 41 million in the third quarter. This resulted in an EBITDA (before fair value adjustment of biomass value) of EUR 13.3 million against EUR 11.3 million in the same period last year.

The Central Norway based company harvested 5,326 tonnes of salmon during the quarter, which produced an operating profit of EUR 1 per kilo.

“The result is characterised by low average prices, but high volumes, and there have been challenges related to lice in some localities, which have had a negative impact on profits,” the company wrote in its quarterly report.

The quarterly accounts also include a sale gain of the company’s 23.05 percent ownership stake in the associated company AQS Holding. The gain of EUR 761,000 is included in net financial income.

NTS had a pre-tax profit of minus EUR 1.1 million. This includes a value adjustment of biomass of EUR 11 million. Adjusted for this, the company made a comfortable profit.

For the year as a whole, NTS expects a harvest volume of 16,000 tonnes of salmon in Norway. This is expected to increase to 18,500 next year.

In Iceland, the company harvested “no significant volumes” during the quarter. It nevertheless maintained an operating profit of EUR 0.3 million. NTS will harvest 6,000 tonnes in Iceland in 2019.

The NTS Group owns ten well boats, three of which are under construction, and four other transport vessels. All but one of the vessels goes out on fixed contracts.

On the salmon farming side, the company has licenses to produce a total of almost 34,000 tonnes of salmon, distributed in central Norway and Iceland.