Norway Royal Salmon (NRS): Q2 21 - Operational EBIT of MNOK 94
Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 94 for the second quarter of 2021 and EBIT per kg of NOK 11.74. Corresponding figures for the same quarter last year were MNOK 120 and NOK 17.06.
- During the second quarter, we have had a successful start-up of the smolt facility in Dåfjord and good progress on the Arctic Offshore Farming development project. Together with the company's activity in Iceland, these two projects are important for the group's ambition for volume growth. The smolt facility will in the long run ensure the supply of smolts and reduce production costs. Arctic Offshore Farming is expected to be launched into the to sea in the third quarter of 2021. Regarding the second quarter results, we are not satisfied with the production cost in the quarter, but we expect reduced costs in the third quarter, says CEO Charles Høstlund.
At the end of the second quarter, NRS has a solid financial position with MNOK 1 633 in unutilised credit facilities and MNOK 118 in bank deposits. Net operational cash inflow in the quarter was MNOK 239. Despite payment of dividend and large payments for the growth investments in Arctic Offshore Farming and the new smolt facility, the net interest-bearing debt decreased in the second quarter by MNOK 69 to MNOK 1 955. The equity increased by MNOK 221 to MNOK 4 319, which equates an equity ratio of 55 %.
Farming Norway
Farming Norway posted an operational EBIT of MNOK 96.3 in the quarter, compared with MNOK 134.7 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 12.22 compared with NOK 17.06 in the corresponding quarter last year. Farming Norway harvested 7 879 tonnes gutted weight in the quarter, which is on the same level as the same quarter last year. Sold volume from the sales business in the quarter was 18 776 tonnes salmon, which is 9 % lower than in the corresponding quarter last year.
Farming Iceland
Farming Iceland posted an operational EBIT of MNOK 17.6 in the quarter, compared with MNOK 3.1 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 9.66 compared with NOK 3.88 in the corresponding quarter last year. Farming Iceland harvested 1 824 tonnes gutted weight in the quarter, which is 126 % higher than in the same quarter last year.
For 2021, the total harvest volume of the group is expected to be 48 000 tonnes, of which 36 000 tonnes in Norway and 12 000 tonnes in Iceland. This is an increase of 18 % for Norway and 61 % for Iceland compared to 2020.
- The demand for salmon is increasing and a reduction in the global harvest volumes is expected for the rest of the year. This provides the basis for a positive market view for salmon, says CEO Charles Høstlund.
On 16 July 2021, NTS ASA made a mandatory offer for all shares in NRS at NOK 209 per share. Afterwards, the board of NRS announced that a strategic process had been initiated. Subsequently, NTS ASA increased its offer to NOK 240 per share with an acceptance deadline of 26 August 2021. On 20 August 2021, Salmar ASA announced that they intend to make a voluntary offer for all shares in NRS of NOK 270 per share.
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 for salmon farming located in Troms and Finnmark, and 17 800 tonnes MAB for salmon farming and 5 300 MAB for trout farming in Iceland through the company Arctic Fish. In addition, the group has minority interest in two associated Norwegian fish farming companies which together own 9 fish farming licenses. 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.