Norway Royal Salmon: Q4 19 – Operational EBIT of MNOK 136

Today Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 136 for the fourth quarter 2019 and EBIT per kg of NOK 16.71. Corresponding figures for the same quarter last year were MNOK 233 and NOK 17.73.

-  The sale of Region South was completed on 16 December 2019 and increased the result after tax with a gain of MNOK 922 in the quarter. Increased production costs have reduced the margin in the quarter, while the price of salmon increased during the quarter. NRS shall grow through sustainable growth, the Group has at the end of the quarter 20 % higher biomass in Region North compared with the corresponding quarter last year, says CEO Charles Høstlund.

For the financial year of 2019, NRS has operating revenues of NOK 5.6 billion, achieved an operational EBIT of MNOK 543 and a profit after tax of MNOK 1 313. The Board proposes a dividend of NOK 10.00 per share for 2019.

The sale of Region South is the main reason for the net interest-bearing debt decreasing by MNOK 893 to MNOK 33 in the quarter. Equity at the end of the quarter is MNOK 3 357, which equates an equity ratio of 72 per cent.

Region North

Region North posted an operational EBIT of MNOK 146.0 in the quarter, compared with MNOK 243.3 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 17.71 compared with NOK 20.20 in the corresponding quarter last year.

Region South

Region South posted an operational EBIT before the time of the sale of MNOK 5.6 in the quarter, compared with MNOK 1.0 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 6.77, compared with NOK 0.60 in the corresponding quarter last year.

NRS harvested 9 070 tonnes gutted weight in the quarter, which is 34 % lower than in the same quarter last year. 8 243 tonnes of the total volume were harvested in Region North and 826 tonnes in Region South. Estimated harvest volume for 2020 is 37 000 tonnes, an increase of 36 per cent compared with the volume of Region North in 2019. The sales business had a good result in the quarter and sold 24 726 tonnes salmon, which is 11 % lower than in the corresponding quarter last year.

In the fourth quarter, the Group was granted NOK 400 million in green funding and 75 % of the NRS’s sites are now ASC-certified. It is gratifying to see that the commitment to sustainable production results in more favorable loan terms and is appreciated by the bank, says CEO 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

The Norway Royal Salmon (NRS) group owns 34 746 tonnes MAB located in Troms and Finnmark. 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 that has licenses for 11 000 tonnes. 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.