Norway Royal Salmon: Q2 19 – Operational EBIT of MNOK 116

Today Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 116 for the second quarter 2019 and EBIT per kg of NOK 23.95. Corresponding figures for the same quarter last year were MNOK 181 and NOK 24.39.

- We are pleased with the result for the quarter in our main region, Region North. Region South has harvested from the same site as in the previous quarter, with announced high production costs. NRS shall grow through sustainable growth, and the Group’s biomass has increased 26 % in comparison to the end of the same quarter last year. NRS had good price achievement and the sales business had a good result in the quarter, says CEO Charles Høstlund.

Payment of dividend and payments for growth investments in Arctic Offshore Farming and the new smolt facility, as well as the buildup of biomass in the sea has resulted in an increase in net interest-bearing debt in the quarter to MNOK 657. Equity at the end of the quarter is MNOK 2 300, which equates an equity ratio of 53 per cent. Return on capital employed for the last four quarters is 31 per cent.

Region North

Region North posted an operational EBIT of MNOK 136.2 in the quarter, compared with MNOK 157.4 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 27.46 compared with NOK 24.73 in the corresponding quarter last year.

Region South

Region South posted an operational EBIT of MNOK 3.4 in the quarter, compared with MNOK 56.5 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 3.95, compared with NOK 23.49 in the corresponding quarter last year.

NRS harvested 5 830 tonnes gutted weight in the quarter, which is 34 % lower than in the same quarter last year. 4 962 tonnes of the total volume were harvested in Region North and 869 tonnes in Region South. Low sea water temperatures in Region North so far this year and preventive measures due to algae bloom have led to lower production, hence estimated harvest volume for 2019 has been reduced to 35 000 tonnes. The sales business sold 17 579 tonnes salmon during the quarter, which is 3 % higher than in the corresponding quarter last year.

- To meet the growing demand for healthy Norwegian salmon, NRS continues to increase the activity in Northern Norway. We are now starting the construction of our new smolt facility outside Tromsø, and once again we have selected Norwegian suppliers as partners in a major investment project. During the quarter, NRS acquired 50 % of Nordnorsk Smolt. The investment is in line with NRS's strategy of greater control over this part of the value chain as well as producing bigger smolt, 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.