Q4 21 – Operational EBIT of MNOK 102
PRESS RELEASE: (Trondheim, 23 February 2022)
Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 102 for the fourth quarter of 2021 and EBIT per kg of NOK 9.43. Corresponding figures for the same quarter last year were MNOK 17 and NOK 5.05.
- Demand for salmon increased during the fourth quarter and into the first quarter of 2022. With a very strong demand and expectations of a decline in global harvest volumes in the first half of 2022, this provides the basis for a very positive market view for salmon in the future. The production of fish delivered from the new smolt facility and the phasing out of triploid fish over the next years are expected to lead to a decrease in production costs in the coming years.
We are pleased that the production at our new smolt facility in Dåfjord has been good, which will ensure NRS smolt from the second quarter, says interim CEO Klaus Hatlebrekke.
For the financial year of 2021, NRS has operating revenues of NOK 5.8 billion, an increase of 23 % from 2020. Operational EBIT for 2021 was MNOK 344, an increase of 40 % from the previous year. The net profit after tax was MNOK 693 for 2021.
At the end of the fourth quarter, NRS has a solid financial position with MNOK 1 192 in unutilised credit facilities and MNOK 65 in bank deposits. Payments for the growth investments in Arctic Offshore Farming and the new smolt facility, as well increased account receivables explain the increase in interest-bearing debt of MNOK 396 to MNOK 2 581 in the fourth quarter. The equity was MNOK 4 443 at the end of the quarter, which equates an equity ratio of 53 %.
Farming Norway posted an operational EBIT of MNOK 95.4 in the quarter, compared with MNOK 36.1 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 9.25 compared with NOK 5.05 in the corresponding quarter last year. Farming Norway harvested 10 319 tonnes gutted weight in the quarter, an increase of 44 % from the same quarter last year. Sold volume from the sales business in the quarter was 23 871 tonnes salmon, which is 3 % higher than in the corresponding quarter last year.
Farming Iceland posted an operational EBIT of MNOK 29.5 in the quarter, compared with MNOK -13.8 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 10.05 compared with NOK -4.62 in the corresponding quarter last year. Farming Iceland harvested 2 938 tonnes gutted weight in the quarter, which is approximately the same as in the corresponding quarter last year.
- In the first quarter of 2022, Arctic Fish experienced biological challenges at two sites. Our skilled employees have made a great effort to handle the situation in the best possible way. The situation is now considered to be stable, says Klaus Hatlebrekke.
For 2021, the total harvest volume of the group was 49 640 tonnes. For 2022, the total harvest volume of the group is expected to be 45 100 tonnes, of which 35 000 tonnes in Norway and 10 100 tonnes in Iceland. For 2023, the total harvest volume of the group is expected to be 63 000 tonnes, of which 50 000 tonnes in Norway and 13 000 tonnes in Iceland. In 2021 the Group release 10.7 million smolts, of which 8.0 million in Norway and 2.7 million in Iceland. For 2022, the smolt release is estimated to be 16.6 million, of which 13.0 million in Norway and 3.6 million in Iceland. This significant increase in smolt releases supports the expectations of a significant increase in harvest volumes in the coming years.
- NRS believes that sustainable salmon production is very important for our long-term economic value creation. NRS achieved the following three ESG ratings from the CDP for 2021; score A- and is classified as one of the leading companies for both supplier involvement in climate change and management of deforestation risk in our supply chain and score B for handling climate change. Although we are only at the beginning of our journey towards a low-carbon economy, we are pleased to see that our efforts so far were rewarded with good scores, says Klaus Hatlebrekke.
For more information, please contact:
• Interim CEO Klaus Hatlebrekke, +47 975 16 757
• CFO Ola Loe, +47 911 79 411
Norway Royal Salmon in brief
The Norway Royal Salmon (NRS) group owns 36 085 tonnes MAB for salmon farming located in Troms and Finnmark, and 17 800 tonnes MAB for salmon farming and 5 300 MAB for trout farming in Iceland through the company Arctic Fish. In addition, the group has minority interest in two associated Norwegian fish farming companies which together own 9 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.