Norway Royal Salmon records strong performance

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Norway Royal Salmon today announced an increased third quarter operating profit or EBIT of NOK 89m (£7.7m) and an EBIT per kilo of NOK 12.13 (£1.05).

The corresponding figures for Q3 last year were NOK 35m (£3m) and NOK 4.21 (£0.36) per kg. Its Iceland based operation, Arctic Fish, performed particularly well, producing a large profit.

NRS has been under new ownership since the summer when it was bought by the NTS group following a prolonged takeover battle with SalMar.

The new NRS CEO Klaus Hatlebrekke said it was gratifying to see that production costs were lower and prices higher than in Q3 last year.

“At the same time the operational EBIT was impacted by high non-recurring costs associated with NTS’ mandatory offer for the company, as well as incidents at external smolt suppliers which meant that NRS had to cull smolts.

“The culling has reduced this year’s release of smolts and will have a negative effect on the harvest volume in 2022.

“We are pleased that the production at our new smolt facility in Dåfjord has been good, this will secure NRS smolt from next spring.”

He said NRS was in a solid financial position with NOK 1.448bn (£125.7m) in unutilised credit facilities and NOK 80m (£7m) in bank deposits.

Farming Norway posted an operational EBIT of NOK105.8m (£9.2m) in the quarter, compared with NOK 42.3m (£3.6m) in the corresponding quarter last year. The operational EBIT per kg gutted weight was NOK 12.69 compared with NOK 4.21 in Q3 2020.

Farming Iceland posted an operational EBIT of NOK 30.9m (£2.7m) compared with just NOK 800,000 a year ago. The operational EBIT per kg jumped from NOK 0.30 to NOK 10.55.

The harvest this year should total 48,000 tonnes with 36,500 tonnes from Norway and 11,500 tonnes from Iceland.

Next year NRS expects the figure to rise to 51,500 tonnes (38,500 in Norway and 13,000 tonnes from Iceland).