Norway Royal Salmon ASA (NRS): NRS cancels the acquisition of MAB growth following the resource rent tax proposal
Earlier this year, NRS purchased 370 tonnes of maximum permitted biomass for a total value of NOK 62 million. The board has decided to cancel the purchase of this capacity. This is caused by the Government's proposal for resource rent tax of 40% and a total effective tax rate of 62%.
Over the past few years, NRS has invested significant amounts in strengthening the value chain through a new smolt facility in Dåfjord in Karlsøy municipality, development of the sea locations and investing in aquaculture at sea through Arctic Offshore Farming. The introduction of a resource rent tax will lead to a significantly weakened investment ability for the company. For the time being, the company's larger future investments are therefore being put on hold. This means that the planned expansion of the smolt facility in Dåfjord of NOK 400 million is postponed.
-NRS has a proud history, and over the years we have developed our farming activity in Troms and Finnmark. We want to develop the company further and create jobs at the coastal areas in northern Norway. We are always looking for growth opportunities, but now we don't dare. A good tax system must be both fair and predictable. The government's proposal for resource rent tax is neither and puts new investments on hold all along the coast. Such unpredictable framework for the aquaculture industry means that the risk is considered as too high, says CEO Charles Høstlund.
For more information, please contact:
-CEO Charles Høstlund, +47 994 18 449
.
About Norway Royal Salmon:
The Norway Royal Salmon (NRS) group owns 36 085 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 on Iceland through the company Arctic Fish. In addition, the group has minority interest in two associated Norwegian fish farming companies which together own nine 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.