Q2 16 – Another quarter with record high operational EBIT
PRESS RELEASE: Q2 16 - Another quarter with record high operational EBIT
(Trondheim, 24. August 2016)
Today Norway Royal Salmon (NRS) reports the highest quarterly operational EBIT in the history of the group. Operational EBIT for the second quarter of 2016 was MNOK 168 and EBIT per kg was NOK 25.33. Corresponding figures for the same quarter last year are MNOK 19 and NOK 4.83.
- The reason for the good quarterly result is very high salmon prices as well as low and stable production costs from the previous quarter in Region North, says CEO Charles Høstlund.
The result before tax and fair value adjustments for the second quarter was MNOK 225, after a gain from financial assets of MNOK 31 were recognized. Earnings per share before fair value adjustments was NOK 4.18 for the quarter.
Cash flow from operational activities was MNOK 263 in the quarter. The Group's net interest bearing debt decreased in the quarter by MNOK 125 to MNOK 147 after paid dividend of MNOK 112. Total equity was MNOK 1 368 at the end of the quarter, which equates an equity ratio of 48.2 per cent.
Region North posted an operational EBIT of MNOK 165.6 in the quarter, compared with MNOK 20.9 in the corresponding quarter last year. Operational EBIT per kg gutted weight before fixed price contracts was NOK 32.79, compared with NOK 5.68 in the corresponding quarter last year.
Region South posted an operational EBIT of MNOK 21.4 in the quarter, compared with MNOK 6.3 in the corresponding quarter last year. Operational EBIT per kg gutted weight before fixed price contracts was NOK 13.69, compared with NOK 3.23 in the corresponding quarter last year.
NRS harvested 7 381 tonnes gutted weight during the quarter, 31 per cent more than in the same quarter last year. 5 468 tonnes of the total volume was harvested in Region North and 1 912 tonnes in Region South. Estimated harvest volume for 2016 is 27 000 tonnes and 10.3 million smolts are estimated released in 2016. The sales business sold 15 561 tonnes during the quarter. 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 quarter in the last 20 years. For 2016, expected global supply growth will be negative in the range of 5 to 7 per cent and in the longer term, global growth is expected to continue to be low. This provides the basis for a positive market outlook for 2016 and in the longer 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.