Norway Royal Salmon (NRS): Q2 22 - Operational EBIT of MNOK 32

Norway Royal Salmon (NRS) reports an operational EBIT before depreciation of offshore equipment of MNOK 32 for the second quarter of 2022 and EBIT per kg of NOK 16.26. Corresponding figures for the same quarter last year were MNOK 94 and NOK 11.74.

- The second quarter of 2022 has been a quarter with record level salmon prices. NRS has harvested a low volume and as announced in the previous quarterly presentation we therefore have an unusually high share of the Norwegian volume on fixed price contracts. The price achievement in relation to the spot price has thus been low and this significantly affects the result in this quarter, says CEO Charles Høstlund.

At the end of the second quarter, NRS has a solid financial position with MNOK 1 694 in unutilised credit facilities and MNOK 80 in bank deposits. A positive EBITDA and reduced working capital explain the decrease in interest-bearing debt of MNOK 91 to MNOK 2 153 in the second quarter. The equity was MNOK 4 657 at the end of the quarter, which equates an equity ratio of 53 %.

Farming Norway

Farming Norway posted an operational EBIT of MNOK 34.8 in the quarter, compared with MNOK 96.3 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 48.16 compared with NOK 12.49 in the corresponding quarter last year. Farming Norway harvested 3 442 tonnes gutted weight in the quarter, a decrease of 56 % from the same quarter last year. Sold volume from the sales business in the quarter was 15 405 tonnes salmon, which is 18 % lower than in the corresponding quarter last year.

Farming Iceland

Farming Iceland posted an operational EBIT of MNOK 37.9 in the quarter, compared with MNOK 17.6 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 36.84 compared with NOK 9.66 in the corresponding quarter last year. Farming Iceland harvested 1 029 tonnes gutted weight in the quarter, a decrease of 44 % from the corresponding quarter last year.

- The merger plan between NRS and SalMar has been approved in both general meetings. These are companies that have clear complementary activities in Norway, Iceland and through offshore aquaculture. There is therefore a solid industrial rationale for the merger and a significant synergy potential. Through smolt from our own smolt plant and the phasing out of sterile fish, NRS expects to gradually deliver more a competitive production cost and fewer biological challenges going forward. The foundation is therefore in place and the merger provides an even stronger basis for value creation and employment in the areas where NRS operates, says Charles Høstlund.

For more information, please contact:

• CEO Charles Høstlund, +47 994 184 49

Norway Royal Salmon in brief

The Norway Royal Salmon (NRS) group owns 36 455 tonnes MAB for salmon farming located in Troms and Finnmark, and 21 800 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.