Norway
United Kingdom
Spain
Germany
France
China
Japan

Q4 15 – Strong result in the fourth quarter.

PRESS RELEASE: Q4 15 – Strong result in the fourth quarter.

 (Trondheim, 16 February 2016)

PRESS RELEASE

Q4 15 – Strong result in the fourth quarter

(Trondheim, 16 February 2016)

 Today Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 91 for the fourth quarter of 2015 and an EBIT per kg of NOK 12.63. Corresponding figures for the same quarter last year are MNOK 59 and NOK 12.80. The board proposes an ordinary dividend of NOK 2.60 per share,

- The reason for the good quarterly result is an improvement in production costs in Region North compared to the previous quarter, as well as good salmon prices. It is gratifying to see improvements in the biological key performance indicators that have resulted in lower production costs, says CEO Charles Høstlund.

For the financial year 2015 has NRS operating revenues of MNOK 3 211 and achieved an operational EBIT of MNOK 202 and a profit before tax of MNOK 270. Earnings per share before fair value adjustments was NOK 5.0 for 2015.

The result before tax for the fourth quarter is MNOK 214, after a gain on fair value adjustments of MNOK 65 and a gain from financial assets of MNOK 50 were recognized.

Cash flow from operational activities was MNOK 133 in the quarter and MNOK 340 for 2015. The Group's net interest bearing debt decreased by MNOK 60 to MNOK 499 during the quarter. Equity increased by MNOK 206 in the quarter to MNOK 1 187, which equates an equity ratio of 41.3 per cent.

Region North

Region North posted an operational EBIT of MNOK 98.9 in the quarter, compared with MNOK 67.6 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 14.54, compared with NOK 12.84 in the corresponding quarter last year.

Region South

Region South posted an operational EBIT of MNOK 5.2 in the quarter, compared with MNOK 1.8 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 3.63, compared with NOK 11.40 in the corresponding quarter last year.

NRS harvested 8 251 tonnes gutted weight during the quarter, 52 per cent more than in the same quarter last year. 6 806 tonnes of the total volume was harvested in Region North and 1 445 tonnes in Region South. Estimated harvest volume for 2016 is 27 500 tonnes.

- NRS expects a significant build-up of biomass in 2016 because the Group will start to utilise the green licenses, says Charles Høstlund.

20 558 tonnes was traded during the quarter and 69 971 tonnes was traded in 2015. This is the highest sold volume both for a quarter and for a year in NRS’s history. The sales business achieved an operational EBIT of MNOK 7.5 in the second quarter.

The salmon price in the quarter is the highest spot price registered in a fourth quarter for 20 years. The global supply growth is expected to be negative in the area of 2 to 4 per cent for 2016 and in the long term the global supply growth is expected to continue to be low. This provides the basis for a positive market outlook for 2016 and in the long term for the industry.

For more information, please contact:

·  CEO Charles Høstlund, +47 994 18 449

·  CFO Ola Loe, +47 911 79 411.

Norway Royal Salmon ASA in brief

Norway Royal Salmon ASA (NRS) is the majority shareholder in four fish farming companies, which own a combined total of 35 production licenses, and is a minority shareholder in three fish farming companies (associates) which together own ten production licenses. NRS is an attractively positioned fish farming group, which through an extensive network of collaborating enterprises and in-house production units, offers salmon to the market through its own sales organisation. For further details, please visit www.norwayroyalsalmon.com.

[Back]