NRS considering strategic alternatives for Region South

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The struggling business of West Norway could be sold.

The Board of Directors of Norway Royal Salmon has decided to engage a financial advisor to assess strategic alternatives for the Group’s operations in Region South, according to the quarterly report of NRS.

Earlier Tuesday Salmobusiness reported that Norway Royal Salmon’s first quarter results were affected by poor performance in Region South.

In Region South production cost per kilo was EUR 5.4 which EUR 0.14 higher than in Q4 2018 and EUR 1.51 higher than in Q1 2018. During the quarter, fish were harvested from the same site as in the previous quarter

“The high production costs at this site are caused by high mortality on harvestable fish in the previous quarter due to the fish disease yersinosis. The remaining fish at this site have been harvested in the second quarter and the operational EBIT is expected to be virtually zero with regards to this fish. As a result of the accelerated harvesting of the fish at this site, the estimated harvest volume for 2019 has been reduced to 4,500 tonnes gutted weight. All smolt will be vaccinated for the disease in the future,” the report said.