NRS earned more per kilo from its Icelandic operations in Q4 than those in Norway

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“With a very strong demand and expectation of a decline in global harvest volumes in the first half of 2022, this provides a basis for a very positive market view of salmon in the future.”

On Wednesday morning, Norway Royal Salmon (NRS) report an operational EBIT for the fourth quarter of 2021 of NOK 102 million (€10 million) and an EBIT / kg of NOK 9.43 (€0.94). The corresponding figures from the same quarter last year are NOK 17 million (€1.7 million) and NOK 5.05 (€0.50).

Acting CEO Klaus Hatlebrekke commented in a statement, “Demand for salmon increased through the fourth quarter and into the first quarter. With a very strong demand and expectation of a decline in global harvest volumes in the first half of 2022, this provides a basis for a very positive market view of salmon in the future.”

“Production of fish delivered from the new smolt plant and phasing out of triploid fish in the coming years are expected to lead to a decrease in our production costs in the coming years. We are pleased that the production in our new smolt plant in Dåfjord has been good, which will ensure NRS smolt supply from the second quarter.”

For the whole of 2021, NRS has operating revenues of NOK 5.8 billion (€580 million), which is an increase of 23 per cent from 2020. Operational EBIT for 2021 was NOK 344 million (€34 million), which is an increase of 40 per cent from the previous year.

Growth investments
NRS has a good financial position with NOK 1,192 million (€120 million) in unused credit facilities, as well as NOK 65 million (€6.5 million) in bank deposits at the end of the fourth quarter. Payments to the company’s growth investments in Arctic Offshore Farming and the expansion of the hatchery in Iceland, as well as increased accounts receivable, explain that net interest-bearing debt increased in the fourth quarter by NOK 396 million (€40 million) to NOK 2,581 million (€258 million). The equity at the end of the quarter is NOK 4,443 million (€444 million), which gives an equity ratio of 53 per cent.

Farming Norway achieved an operational EBIT in the fourth quarter of 2021 of NOK 95.4 million (€9.5 million), while operational EBIT per. kg gutted weight was NOK 9.25 (€0.92). Farming Norway harvested a volume of 10,319 tonnes gutted weight in the quarter. The volume sold from the sales business in the quarter was 23,871 tonnes of salmon.

Farming Iceland achieved an operational EBIT in the fourth quarter of 2021 of NOK 29.5 million (€3 million) against NOK -13.8 million (-€1.4) in the corresponding quarter the year before. Operational EBIT per kg gutted weight was NOK 10.05 (€1.00). Farming Iceland harvested a volume of 2,938 tonnes gutted weight in the quarter.

Challenges
“In the first quarter of 2022, Arctic Fish experienced biological challenges at two of its sites. Our skilled employees have made a great effort to handle the situation in the best possible way. The situation is now considered to be stable,” said Klaus Hatlebrekke.

Read also: Up to 2,000 tonnes of salmon crushed to death in Icelandic storms

For 2021, the total harvest volume was 49,640 tonnes and for 2022, the harvest volume is expected to be 45,100 tonnes, of which 35,000 tonnes in Norway and 10,100 tonnes in Iceland. For 2023, the group’s total harvest volume is expected to be 63,000 tonnes, of which 50,000 tonnes in Norway and 13,000 tonnes in Iceland.

Smolt release in 2021 was 10.7 million smolts, of which 8.0 million were in Norway and 2.7 million in Iceland. For 2022, the smolt release is estimated to be 16.6 million, of which 13.0 million will be in Norway and 3.6 million in Iceland. This significant increase in smolt releases supports the expectations of a significant increase in harvest volumes in the coming years.