Norway Royal Salmon supersized biomass by 71 percent last quarter

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Norway Royal Salmon (NRS) today reported an operating EBIT of EUR 3.6 million and an EBIT per kg of EUR 2.3 for Q3 2018.

“During the quarter we have focused on building biomass and the biomass in the sea has increased by 71 per cent from the end of the previous quarter. This has resulted in a low harvest volume for the quarter. We have had a positive development in production costs from the previous quarter in Region North,” said CEO Charles Høstlund in a press release.

Net interest-bearing debt increased by EUR 9.1 million to EUR 52.4 million during the quarter, after payment for purchase of 800 tonnes MTB and an biomass increase of 11 927 tonnes.

Region North
Region North posted an operational EBIT of EUR 5.5 million in the quarter, EUR 16.2 million in the corresponding quarter last year. Operational EBIT per kg gutted weight was EUR 2.3 compared with EUR 1.9 in the corresponding quarter last year.

Region South
Region South posted an operational EBIT of EUR 188 thousannd in the quarter, compared with EUR 4,8 million in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK EUR 1.8, compared with EUR 2.1 in the corresponding quarter last year.

Increase
NRS harvested 2 478 tonnes gutted weight in the quarter, which is 76 per cent lower than in the same quarter last year. 2 379 tonnes of the total volume were harvested in Region North and 100 tonnes in Region South. Estimated harvest volume is 36 000 tonnes for 2018, an increase of 13 per cent from 2017. Estimated harvest volume is 40 000 tonnes for 2019, an increase of 11 per cent from 2018. 10.8 million smolts are planned released in 2018. The sales business sold 14 945 tonnes salmon during the quarter, which is 33 per cent lower than the corresponding quarter last year.

For 2018, the slaughter volume is expected to be 36,000 tonnes, an increase of 13 percent from 2017. For 2019, the slaughter volume is expected to be 40,000 tonnes, an increase of 11 percent from 2018. Estimated smolt set for 2018 is 10.8 million pieces. Sold quantity from sales activities in the quarter is 14 945 tonnes of salmon, which is 33 per cent lower than the corresponding quarter last year.

Norway Royal Salmon (NRS) group owns 39 426 tonnes MAB distributed between 34746 tonnes MAB in northern Norway and 4 680 tonnes MAB in southern Norway. In addition, the group has minority interest in three associated Norwegian fish farming companies which together own ten fish farming licenses, as well as Arctic Fish on Iceland.