NRS EBIT down 36 % in Q2

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Significantly lower harvest volume than last year.

In a financial statement on Tuesday, Norway Royal Salmon (NRS) reports an operational EBIT of EUR 11.5 million for the second quarter of 2019 and EBIT per kg of EUR 2.3. Corresponding figures for the same quarter last year were EUR 18 million (down 36 per cent) and EUR 2.4.

“We are pleased with the result for the quarter in our main region, Region North. Region South has harvested from the same site as in the previous quarter, with announced high production costs. NRS shall grow through sustainable growth, and the Group’s biomass has increased by 26 per cent in comparison to the end of the same quarter last year. NRS had good price achievement and the sales business had a good result in the quarter,” said CEO Charles Høstlund.

Payment of dividend and payments for growth investments in Arctic Offshore Farming and the new smolt facility, as well as the buildup of biomass in the sea has resulted in an increase in net interest-bearing debt in the quarter to EUR 65.6 million.

Equity at the end of the quarter is EUR 22.9 million, which equates an equity ratio of 53 per cent. Return on capital employed for the last four quarters is 31 per cent.

Region North
Region North posted an operational EBIT of MNOK 136.2 in the quarter, compared with MNOK 157.4 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 27.46 compared with NOK 24.73 in the corresponding quarter last year.

Region South
Region South posted an operational EBIT of EUR 360,000 in the quarter, compared with EUR 5.6 million in the corresponding quarter last year. Operational EBIT per kg gutted weight was EUR 0.39, compared with EUR 2.34 in the corresponding quarter last year.

Bigger smolt
NRS harvested 5 830 tonnes gutted weight in the quarter, which is 34 per cent lower than in the same quarter last year. 4 962 tonnes of the total volume were harvested in Region North and 869 tonnes in Region South. Low sea water temperatures in Region North so far this year and preventive measures due to algae bloom have led to lower production, hence estimated harvest volume for 2019 has been reduced to 35 000 tonnes. The sales business sold 17 579 tonnes salmon during the quarter, which is 3 per cent higher than in the corresponding quarter last year.

“To meet the growing demand for healthy Norwegian salmon, NRS continues to increase the activity in Northern Norway. We are now starting the construction of our new smolt facility outside Tromsø (Northern Norwway), and once again we have selected Norwegian suppliers as partners in a major investment project. During the quarter, NRS acquired 50 % of Nordnorsk Smolt. The investment is in line with NRS’s strategy of greater control over this part of the value chain as well as producing bigger smolt,” said Charles Høstlund.