Norway Royal Salmon: Q1 19 – Operational EBIT of MNOK 164

Today Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 164 for the first quarter 2019 and EBIT per kg of NOK 22.42. Corresponding figures for the same quarter last year were MNOK 193 and NOK 18.78.

- We are pleased with the operation in our main region, Region North, during the quarter. It is particularly gratifying to see that Finnmark continues the positive trend. Region South has harvested from the same site as in the previous quarter, with announced high production costs due to biological challenges. An important milestone has also been reached in the quarter by harvesting the first salmon from Arctic Fish on Iceland with a good biological result, says CEO Charles Høstlund.

Net operation cash flow amounted to MNOK 319 in the first quarter. Although NRS has purchased own shares for MNOK 103, net interest-bearing debt decreased in the quarter by MNOK 132 to MNOK 288. Equity increased to MNOK 2 355 at the end of the quarter, which equates an equity ratio of 60 per cent. Return on capital employed for the last four quarters is 36 per cent. During the quarter, the credit limit from the Group's bank increased by MNOK 600 to MNOK 2 000.

Region North

Region North posted an operational EBIT of MNOK 179.0 in the quarter, compared with MNOK 184.4 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 25.51 compared with NOK 19.22 in the corresponding quarter last year.

Region South

Region South posted an operational EBIT of MNOK 2.5 in the quarter, compared with MNOK 20.9 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 2.31, compared with NOK 15.64 in the corresponding quarter last year.

NRS harvested 8 096 tonnes gutted weight in the quarter, which is 26 per cent lower than in the same quarter last year. 7 016 tonnes of the total volume were harvested in Region North and 1 080 tonnes in Region South. Estimated harvest volume for 2019 is 37 500 tonnes. The sales business sold 22 838 tonnes salmon during the quarter, approximately the same as in the corresponding quarter last year.

- We continue to develop the company and have continued working on our investment program. It is therefore gratifying that we recently could announce that Fosen Yard will build the cages for our offshore aquaculture facility, Arctic Offshore Farming. We are now developing new technology that will contribute to develop the industry further, and create a number of jobs along the coast, 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

Norway Royal Salmon (NRS) group owns 39 426 tonnes MAB distributed between 34 746 tonnes MAB in Region North located in West Finnmark and Troms and 4 680 tonnes MAB in Region South in the area around Haugesund. In addition, the group has minority interest 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 offers salmon to the market through its own sales organisation. For further details, please visit www.norwayroyalsalmon.com.