Today Norway
Royal Salmon (NRS) reports the highest quarterly operational EBIT
and margins for a first quarter in the history of the group.
Operational EBIT for the first quarter of 2017 was MNOK 205 and
EBIT per kg was NOK 28.60. Corresponding figures for the same
quarter last year were MNOK 153 and NOK 25.54.
- We are very pleased that NRS
delivers a new record result. The reason for the good quarterly
result is high salmon prices, and that Region South and the Sales
business deliver strong results, says CEO Charles Høstlund.
During the quarter the Group's net
interest bearing debt increased by MNOK 98to MNOK 381, after
acquiring treasury shares for MNOK 101. Equity by the end of the
quarter is MNOK 1 905, which equates an equity ratio of 53.3 per
cent. Return on capital employed for the last four quarters is 52.4
per cent.
Region North
Region North posted an operational EBIT of MNOK 150.1 in the
quarter, compared with MNOK 173.3 in the corresponding quarter last
year. Operational EBIT per kg gutted weight was NOK 27.28, compared
with NOK 26.66 in the corresponding quarter last year.
Region South
Region South posted an operational EBIT of MNOK 55.3 in the
quarter, compared with MNOK 10.8 in the corresponding quarter last
year. Operational EBIT per kg gutted weight was NOK 32.91, compared
with NOK 15.26 in the corresponding quarter last year.
NRS harvested 7 181 tonnes gutted
weight during the quarter, approximately the same as in the same
quarter last year. 5 500 tonnes of the total volume were harvested
in Region North and 1 681 tonnes in Region South. Estimated harvest
volume is 34 000 tonnes for 2017, an increase of 27 per cent
from 2016.
The sales business sold 15 714
tonnes salmon during the quarter, approximately the same as in the
corresponding quarter last year. The sales business had a good
price achievement in the quarter.
- The price of salmon in the
quarter was the highest price recorded in a first quarter for the
last 20 years. For 2017, we expect an increase in the supply to the
global market of 2 to 4 per cent. A continued low supply growth and
good work in the markets provides the basis for a positive market
outlook, says Charles Høstlund.
In May, Norway Royal Salmon and
Grieg Seafood acquired 50 per cent each of Nordnorsk Smolt AS.
Nordnorsk Smolt AS is a smolt plant that supplies big smolt. The
company is located in Hasvik (Finnmark), which is a strategically
good location for the NRS' operations in Region North. The
acquisition will ensure good access to big smolt which will
contribute to better production optimization and shorter production
time in the sea. The investment is in accordance with NRS' strategy
to strengthen smolt production.
For more information, please contact:
-
CEO Charles Høstlund, +47 994 18 449
-
CFO Ola Loe, +47 911 79 411.
Norway Royal Salmon in brief
Norway Royal Salmon (NRS) group owns 35 fish farming licenses, and
is a minority shareholder 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 through an extensive network of
collaborating enterprises and in-house production units, offers
salmon to the market through its own sales organisation. For
further details, please visit www.norwayroyalsalmon.com.
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.