Q1-17 - BEST FIRST QUARTER RESULT IN THE HISTORY OF NORWAY ROYAL SALMON
PRESS RELEASE: Q1 17 - Best first quarter result in the history of Norway Royal Salmon
(Trondheim, 23. may 2017)
Today Norway Royal Salmon (NRS) reports the highest quarterly operational EBIT and margins for a first quarter in the history of the group.
Today Norway Royal Salmon (NRS) reports the highest quarterly operational EBIT and margins for a first quarter in the history of the group. Operational EBIT for the first quarter of 2017 was MNOK 205 and EBIT per kg was NOK 28.60. Corresponding figures for the same quarter last year were MNOK 153 and NOK 25.54.
- We are very pleased that NRS delivers a new record result. The reason for the good quarterly result is high salmon prices, and that Region South and the Sales business deliver strong results, says CEO Charles Høstlund.
During the quarter the Group's net interest bearing debt increased by MNOK 98 to MNOK 381, after acquiring treasury shares for MNOK 101. Equity by the end of the quarter is MNOK 1 905, which equates an equity ratio of 53.3 per cent. Return on capital employed for the last four quarters is 52.4 per cent.
Region North posted an operational EBIT of MNOK 150.1 in the quarter, compared with MNOK 173.3 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 27.28, compared with NOK 26.66 in the corresponding quarter last year.
Region South posted an operational EBIT of MNOK 55.3 in the quarter, compared with MNOK 10.8 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 32.91, compared with NOK 15.26 in the corresponding quarter last year.
NRS harvested 7 181 tonnes gutted weight during the quarter, approximately the same as in the same quarter last year. 5 500 tonnes of the total volume were harvested in Region North and 1 681 tonnes in Region South. Estimated harvest volume is 34 000 tonnes for 2017, an increase of 27 per cent from 2016.
The sales business sold 15 714 tonnes salmon during the quarter, approximately the same as in the corresponding quarter last year. The sales business had a good price achievement in the quarter.
- The price of salmon in the quarter was the highest price recorded in a first quarter for the last 20 years. For 2017, we expect an increase in the supply to the global market of 2 to 4 per cent. A continued low supply growth and good work in the markets provides the basis for a positive market outlook, says Charles Høstlund.
In May, Norway Royal Salmon and Grieg Seafood acquired 50 per cent each of Nordnorsk Smolt AS. Nordnorsk Smolt AS is a smolt plant that supplies big smolt. The company is located in Hasvik (Finnmark), which is a strategically good location for the NRS’ operations in Region North. The acquisition will ensure good access to big smolt which will contribute to better production optimization and shorter production time in the sea. The investment is in accordance with NRS’ strategy to strengthen smolt production.
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 35 fish farming licenses, and is a minority shareholder 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 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.