Norway Royal Salmon (NRS): Q2 20 – Operational EBIT of MNOK 120
Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 120 for the second quarter 2020 and EBIT per kg of NOK 17.06. Corresponding figures for the same quarter last year were MNOK 113 and NOK 27.46.
- We have had a quarter characterized by large fluctuations in the market price of salmon, and thus achieved a significantly lower salmon price than at the same time last year. This is largely due to the Covid-19 pandemic. It is gratifying to see that the production cost has a positive development from the previous quarter, where we have achieved good biological and financial results at some sites during the quarter. However, we still see that we have too large fluctuations in performance, which means that our focus going ahead will be on strict cost control and better utilisation of our production capacity, says CEO Charles Høstlund.
NRS has a strong financial position with MNOK 1 454 in unutilised credit facilities at the end of the second quarter of 2020. Net cash flow from operations was positive by MNOK 183 in the quarter. Payment of dividend and purchase of treasury shares, as well as payments for the growth investments in Arctic Offshore Farming and the new smolt facility, have resulted in net interest-bearing debt increasing by MNOK 335 to MNOK 618 in the quarter. The equity at the end of the quarter is MNOK 3 161, which equates an equity ratio of 62 %.
Farming
Farming posted an operational EBIT of MNOK 134.7 in the quarter, compared with MNOK 136.2 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 17.06 compared with NOK 27.46 in the corresponding quarter last year.
NRS harvested 7 894 tonnes gutted weight in the quarter, which is 59 % higher than in the same quarter last year. Estimated harvest volume for 2020 is 35 000 tonnes, an increase of 28 % compared with the volume harvested in 2019. Sold volume from the sales business in the quarter was 20 650 tonnes salmon, which is 18 % higher than in the corresponding quarter last year.
- After the end of the quarter, NRS purchased additional production capacity in Troms and Finnmark through the authorities' traffic light system for growth. The purchase once again highlights the company's strategic commitment to further development of the company in Northern Norway, both through existing production capacity and new investment projects. NRS shall continue with sustainable growth and the Group has 24 % higher biomass in the sea at the end of the quarter compared to the same quarter last year, says Charles Høstlund.
For more information, please contact:
- CEO Charles Høstlund, +47 994 18 449
- CFO Ola Loe, +47 911 79 411.
Norway Royal Salmon in brief
The Norway Royal Salmon (NRS) group owns 36 085 tonnes MAB located in Troms and Finnmark. In addition, the group has minority interest in three associated Norwegian fish farming companies which together own 11 fish farming licenses, as well as Arctic Fish on Iceland that has licenses for 11 800 tonnes in MAB. NRS is an attractively positioned fish farming group, which offers salmon to the market through its own sales organisation. For further details, please visit www.norwayroyalsalmon.com.