Norway Royal Salmon’s revenues rise

THE fish farmer Norway Royal Salmon (NRS) has reported a large increase in operating revenues for the second quarter of this year.
The figure was NOK 1,232.9 million compared to NOK 995 million in the same period last year.
The operational EBIT (earnings before interest and tax) was almost NOK 136 million, down from NOK 168.5 million in 2016, but the EBIT for the year to date is up by almost NOK 20 million to NOK 340 million.
NRS said harvested volumes were 29 per cent lower during the period, but sold volumes were 11 per cent higher, adding there was a ‘stable and good performance in the south region and high production costs in the north region’.  The situation around both fish health and sea lice was good.
The company’s interim report says: ‘Demand for Norwegian salmon in Asia has been good for a long time. The second quarter of 2017 was no exception.
‘The trade problems with China continued in the second quarter, however work is being done to find a solution, which will be very positive in the long term.’
Demand from North America for Norwegian salmon continued its positive upward trend while the company’s sales into Western Europe accounted for 83 per cent of its total exports.
‘Looking ahead, we expect global harvest volumes to increase compared with the same period last year.
In the third quarter, the increase is expected to be nine per cent and in the fourth quarter the increase is expected to be 10 per cent.
‘As a result, in 2017 we expect an increase in supply to world markets of five per cent. Moderate supply growth and good demand provide the basis for a positive market outlook for the industry.’
The report adds: ‘The farming operations in Finnmark have received approval for a new site in Måsøy municipality in Western Finnmark with a MAB of 3,600 tonnes.
‘Another two sites at NRS Finnmark received ASC (Aquaculture Stewardship Council) certification.  NRS are pleased to have another two sites approved by the strictest international environmental standards in the industry. Nine of 16 sites at NRS Finnmark are now ASC certified.’