Norway Royal Salmon posts its highest operational EBIT ever

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Norway Royal Salmon (NRS) on Tuesday reported an operational EBIT for the fourth quarter of 2018 of NOK 232 million (EUR 23.6 million) at NOK 17.73 (EUR 1.77) per kilo.

“Today we report the highest operational EBIT in the history of NRS for both a quarter and a financial year. We are pleased that Region North continues the positive development in production costs, however biological challenges in Region South are reducing the result,” said CEO Charles Høstlund in a stock exchange announcement.

For the entirety of 2018, NRS has had operating revenues of more than five billion (EUR 500 million) and achieved an operational EBIT of NOK 642 million (EUR 65.3 million).

The board proposes a dividend of NOK 6 (EUR 0.6) per share for 2018.

It is still the case that NRS earns its money in Northern Norway. Region Nord achieved an operational EBIT in the fourth quarter of 2018 of NOK 243.3 million (EUR 24.7 million), while Region South achieved an operational EBIT in the fourth quarter of 2018 of NOK 1 million (EUR 101.8 thousand).

NRS harvested a volume of 13,783 tonnes gutted weight in the quarter, which is 52 per cent higher than the corresponding quarter last year.

In 2019, harvest volume is expected to be 38,000 tonnes, which is an increase of six per cent from 2018. Solid volume from sales activities during the quarter amounted to 27,785 tonnes of salmon. Both harvested and sold volume is the highest in a quarter in the history of NRS.

“NRS takes an active part in the development of a sustainable aquaculture industry through substantial investments over the next three years. We focus on innovation and technology development to ensure our sustainable growth by investing in a smolt facility and offshore fish farms that will create new local jobs,” said Charles Høstlund.

NRS group own 39,426 tonnes MAB distributed between 34 746 tonnes MAB in Region North located in West Finnmark and Troms, Northern Norway, and 4,680 tonnes MAB in Region South in the area around Haugesund, southwestern Norway. In addition, the group has a minority interest in three associated Norwegian fish farming companies which together own ten fish farming licenses, as well as Arctic Fish on Iceland. NRS is an attractively positioned fish farming group, which offers salmon to the market through its own sales organisation.