Salmon farming and whitefish fueled Austevoll Seafood’s Q3 earnings

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Low activity in the traditional core area of pelagic fishing.

The group controlling a majority stake in salmon farmer Leroy Seafood Group (LSG) reported operating revenue of NOK 4,903 million in the quarter, compared with NOK 4,611 million in Q3 2016. The increase in revenue comes from both the operating segment for Atlantic salmon/trout/whitefish and the pelagic segment. Subsequent to LSG’s acquisition of Havfisk and Norway Seafoods Group at the end of August 2016, both companies were consolidated with effect from September 2016.

EBITDA in Q3 2017 was NOK 1,051 million, up from NOK 709 million in the same quarter of 2016, stated in the Q3 report released this morning.

The increase in EBITDA was generated by the Atlantic salmon/trout/whitefish operating segment. The seasonal fluctuations in catch volumes for wild catches cause similar fluctuations in the quarterly key figures from year to year. The fall in EBITDA within the pelagic segment from Q3 2016 to Q3 2017 is mainly attributed to the early start for the first fishing season in Peru this year, as early as April. This resulted in a high catch volume in Q2 2017 and a correspondingly high sales volume of finished products in the same quarter. The fishing season started very late in 2016, at the end of June. The catch volumes were therefore reported in the third quarter and the sales volumes for finished products in the third quarter and late 2016.

EBIT before fair value adjustment related to biological assets in Q3 2017 was NOK 822 million.

Profit before tax and fair value adjustment related to biological assets for Q3 2017 amounted to NOK 873 million, compared with NOK 546 million in Q3 2016.