Norway Royal Salmon (NRS): Q3 21 - Operational EBIT of MNOK 89

Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 89 for the third quarter of 2021 and EBIT per kg of NOK 12.13. Corresponding figures for the same quarter last year were MNOK 35 and NOK 4.21.

- It is gratifying that the production costs are lower, and the prices are higher in this quarter than in the corresponding quarter last year. At the same time is operational EBIT impacted by high non-recurring costs associated with NTS' mandatory offer for the company, as well as incidents at external smolt suppliers which meant that NRS had to cull smolts. The culling of smolts has reduced this year’s release of smolts and will have a negative effect on the harvest volume in 2022. We are pleased that the production at our new smolt facility in Dåfjord has been good, this will secure NRS smolt from next spring, says interim CEO Klaus Hatlebrekke

At the end of the third quarter, NRS has a solid financial position with MNOK 1 448 in unutilised credit facilities and MNOK 80 in bank deposits. Payments for the growth investments in Arctic Offshore Farming and the new smolt facility, as well as the build-up of the biomass in the sea explains the increase in the interest-bearing debt of MNOK 190 to MNOK 2 185 in the third quarter. The equity increased by MNOK 102 to MNOK 4 421, which equates an equity ratio of 55 %.

Farming Norway

Farming Norway posted an operational EBIT of MNOK 105.8 in the quarter, compared with MNOK 42.3 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 12.69 compared with NOK 4.21 in the corresponding quarter last year. Farming Norway harvested 8 340 tonnes gutted weight in the quarter, a decrease of 17 % from the same quarter last year. Sold volume from the sales business in the quarter was 20 167 tonnes salmon, which is 26 % lower than in the corresponding quarter last year.

Farming Iceland

Farming Iceland posted an operational EBIT of MNOK 30.9 in the quarter, compared with MNOK 0.8 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 10.55 compared with NOK 0.30 in the corresponding quarter last year. Farming Iceland harvested 2 925 tonnes gutted weight in the quarter, which is 5 % 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 36 500 tonnes in Norway and 11 500 tonnes in Iceland. This is an increase of 20 % for Norway and 55 % for Iceland compared to 2020. For 2022, the total harvest volume of the group is expected to be 51 500 tonnes, of which 38 500 tonnes in Norway and 13 000 tonnes in Iceland. Estimated smolt release for 2021 is 11.2 million smolts, of which 8.4 million in Norway and 2.8 million in Iceland. For 2022, the smolt release is estimated to be 15.6 million, of which 12.1 in Norway and 3.5 million in Iceland.

- NRS believes that sustainable salmon production is very important for our long-term economic value creation. NRS works to achieve the strictest environmental certificate in our industry, the Aquaculture Stewardship Council (ASC) standard. ASC certified fish are produced in a responsible and sustainable way within very strict requirements. NRS has now achieved ASC certification at all our active sites, both in Norway and Iceland. We have worked towards this goal for several years and NRS is one of the few companies in the world that has achieved 100 % ASC certification. NRS has started the electrification of the feed barges at our fish farms in Norway. The solutions for our feed barges are either batteries charged with fossil fuels (hybrid) or batteries charged from the onshore power grid. 89 % of the feed barges in Norway have now installed batteries and operate on a hybrid solution. As a result of this, we expect a significant reduction in carbon emissions as well as a more cost-effective power supply, says Klaus Hatlebrekke.

For more information, please contact:

• Interim CEO Klaus Hatlebrekke, +47 975 16 757
• 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.