Norway Royal Salmon (NRS) reports an operational EBIT of MNOK 35 for the third quarter 2020 and EBIT per kg of NOK 4.21. Corresponding figures for the same quarter last year were MNOK 131 and NOK 19.60.
- The market price of salmon has, as normal, been seasonally low in the quarter but is also impacted by the Covid-19 pandemic. In the quarter NRS finished harvest of a generation that has had high production costs. Our margins in this quarter are therefore affected by this. We have had good growth throughout the quarter, and by starting to harvest a new generation we expect lower production costs in the next quarter, says CEO Charles Høstlund.
NRS has a strong financial position with MNOK 1 103 in unutilized credit facilities at the end of the third quarter of 2020. After the end of the quarter, NRS was offered MNOK 800 in an increased loan facility with a sustainability term loan, which will further increase the group's financial headroom. Net cash flow from operations was positive by MNOK 268 in the quarter. Payments for acquisition of MAB through the governmental MAB-auction and payments for the growth investments in Arctic Offshore Farming and the new smolt facility, have resulted in an increase in net interest-bearing by MNOK 327 to MNOK 944 in the quarter. The equity at the end of the quarter is MNOK 3 312, which equates an equity ratio of 58 %.
Farming posted an operational EBIT of MNOK 42.3 in the quarter, compared with MNOK 138.7 in the corresponding quarter last year. Operational EBIT per kg gutted weight was NOK 4.21 compared with NOK 19.60 in the corresponding quarter last year.
NRS harvested 10 058 tonnes gutted weight in the quarter, which is 42 % higher than in the same quarter last year. For 2020, the harvest volume is expected to be 32 500 tonnes gutted weight and for 2021 the harvest volume is estimated to 40 000 tonnes, which is an increase of 23 % compared with 2020. The estimated smolt put to sea for 2020 is 10.0 million smolts. Sold volume from the sales business in the quarter was 27 110 tonnes salmon, which is 10 % higher than in the corresponding quarter last year.
- NRS has high expectations to our aquaculture investment in Iceland, through Arctic Fish which we own 50 %. We want to take this company a step further and have therefore engaged financial advisers to explore a potential listing of Arctic Fish on Merkur Market. A possible result of the process is that NRS will surpass majority ownership in Arctic Fish after the transaction, says Charles Høstlund.
For more information, please contact:
· CEO Charles Høstlund, +47 994 18 449
· CFO Ola Loe, +47 911 79 411.
Quarterly report Q3-20Quarterly presentation Q3-20
Norway Royal Salmon in brief
The Norway Royal Salmon (NRS) group owns 36 085 tonnes MAB located in Troms and Finnmark. In addition, the group has minority interest in three associated Norwegian fish farming companies which together own 11 fish farming licenses, as well as Arctic Fish on Iceland that has salmon farming licenses for 11 800 tonnes in MAB. 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.