Gain from asset sale lift Norway Royal Salmon: pays EUR 43 million in dividend

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Solid balance sheet and cash stock open up for new opportunities.

Today Norway Royal Salmon (NRS) reports an operational EBIT of EUR 13 million for the fourth quarter of 2019 and EBIT per kg of EUR 1.65

“The sale of Region South was completed on 16 December 2019 and increased the result after tax with a gain of EUR 91 million in the quarter. Increased production costs have reduced the margin in the quarter, while the price of salmon increased during the quarter. Norway Royal Salmon (NRS) shall grow through sustainable growth, the Group has at the end of the quarter 20 % higher biomass in Region North compared with the corresponding quarter last year,” says CEO Charles Høstlund in a stock exchange announcement.

For the financial year of 2019, NRS has operating revenues of EUR 553 million, achieved an operational EBIT of EUR 53 million and a profit after tax of EUR 130 million.

The Board proposes a dividend of NOK 10.00 per share for 2019.

The sale of Region South is the main reason for the net interest-bearing debt decreasing by EUR 88 million to EUR 0.3 million in the quarter. Equity at the end of the quarter is EUR 331 million, which equates an equity ratio of 72 per cent.

Region North posted an operational EBIT of EUR 14 million in the quarter. Operational EBIT per kg gutted weight was EUR 0.7. Region South posted an operational EBIT before the time of the sale of EUR 0.5 million in the quarter. Operational EBIT per kg gutted weight was EUR 0.66.

NRS harvested 9 070 tonnes gutted weight in the quarter, which is 34 % lower than in the same quarter last year. 8 243 tonnes of the total volume were harvested in Region North and 826 tonnes in Region South. Estimated harvest volume for 2020 is 37 000 tonnes, an increase of 36 per cent compared with the volume of Region North in 2019.

The sales business had a good result in the quarter and sold 24 726 tonnes salmon, which is 11 % lower than in the corresponding quarter last year.

“In the fourth quarter, the Group was granted NOK 400 million (EUR 39 million) in green funding and 75 % of the NRS’s sites are now ASC-certified. It is gratifying to see that the commitment to sustainable production results in more favourable loan terms and is appreciated by the bank, ” says CEO Charles Høstlund.