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Press release Q3 15

PRESS RELEASE Q3-15: Operational EBIT before non-recurring costs of MNOK 54  (Trondheim, 10 November 2015)

Today Norway Royal Salmon (NRS) reports an operational EBIT before non-recurring items of MNOK 54 for the third quarter of 2015 and an EBIT per kg of NOK 9.24.

PRESS RELEASE Q3-15: Operational EBIT before non-recurring costs of MNOK 54  

(Trondheim, 10 November 2015)

Today Norway Royal Salmon (NRS) reports an operational EBIT before non-recurring items of MNOK 54 for the third quarter of 2015 and an EBIT per kg of NOK 9.24.

- The result is significantly influenced by non-recurring costs totaling MNOK 31.3. The costs consist of MNOK 25.0 related to the fish disease ISA in Region North and MNOK 6.3 related to the verdict against Nord Senja Laks AS, says CEO Charles Høstlund.

The Group achieved an operational EBIT of MNOK 23. The result before tax for the third quarter is MNOK 115, after a gain on fair value adjustments of MNOK 115 was recognized.

Cash flow from operational activities was MNOK 78 in the quarter. The Group's net interest bearing debt decreased by MNOK 67 to MNOK 559 during the quarter. Equity at the quarter end was MNOK 981, which equates an equity ratio of 38.3 per cent.

Region North

Region North posted an operational EBIT of MNOK 60.2 in the quarter, compared with MNOK 26.3 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 9.69, compared with NOK 5.91 in the corresponding quarter last year.

Region South

Region South posted an operational EBIT of MNOK 0.1 in the quarter, compared with MNOK 2.9 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 0.24, compared with NOK 1.76 in the corresponding quarter last year.

- Due to high average weight of harvested fish and sale of ASC-certified fish, NRS had a good price achievement in the quarter. Harvested fish has a high cost caused by high feed cost, but a reduction in the production cost is expected in the coming quarters, says Charles Høstlund.

NRS harvested 6 519 tonnes gutted weight during the quarter, 7 per cent more than in the same quarter last year. 6 206 tonnes of the total volume was harvested in Region North and only 312 tonnes in Region South. Estimated harvest volume for 2015 is 28 000 tonnes, an increase of 25 per cent from 2014. Estimated harvest volume for 2016 is 27 500 tonnes. The destruction of fish with the fish disease ISA at two sites in the third quarter has affected the harvest volume for 2015 and 2016 negatively. NRS expects a significant build-up of biomass next year and virtually full utilisation of the Group’s MAB at the end of 2016, including utilisation of the 10 new licenses.

16 333 tonnes was traded during the quarter; an increase of 29 per cent compared with the same quarter last year. The sales business achieved an operational EBIT of MNOK 1.9 in the second quarter.

The salmon price in the quarter is the highest spot price registered in a third quarter for 20 years. The global supply growth is expected to be around zero for the fourth quarter of 2015 and for 2016. This provides the basis for a positive market outlook for both the fourth quarter of 2015 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.

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