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Record year for Norway Royal Salmon

12 February 2019, at 8:59am

A record fourth quarter helped make 2018 the most profitable year in Norway Royal Salmon’s history.

The company’s Q4 report, published today, reveals that in Q4 Norway Royal Salmon (NRS) achieved an operational EBIT of 232 million kroner at an EBIT per kg of 17.73 kroner. Corresponding figures for the same quarter last year were 95 million kroner and 15.51 kroner/kg.

“Today we report the highest operational EBIT in the history of NRS for both a quarter and a financial year. We are pleased that Region North continues the positive development in production costs, however biological challenges in Region South are reducing the result,” says CEO, Charles Høstlund.

For the financial year of 2018, NRS has operating revenues of more than 5 billion kroner and achieved an operational EBIT of 642 million NOK. As a result the board has proposed a dividend of 6 kroner per share for 2018.

Regional differences

The company’s operations in Region North posted an operational EBIT of 243.3 million kroner in the quarter, compared with 116 million in the corresponding quarter last year. Operational EBIT per kg gutted weight was 20.20 kroner compared with 15.84 kroner in the corresponding quarter last year.

Total production costs per kg for harvested fish was in Region North was 33.78 kroner, which is 2.80 kroner lower than in the corresponding period last year. While their operations in Finnmark achieved low production costs, harvest of fish from areas with temporary restrictions resulted in high wellboat and harvest costs in Troms. The estimated 2019 harvest volume for their sites in Region North is 33,000 tonnes gutted weight.

However, their southern operations performed much less successfully, posting an operational EBIT of 1 million kroner in the quarter, compared with 24.4 million kroner in the corresponding quarter last year, while operational EBIT per kg gutted weight was 0.60 kroner, compared with 14.12 kroner.

This was, the company says "due to high mortality on harvestable fish as a result of the fish disease yersiniosis" which pushed up production costs for harvested fish to 51.60 kroner/kg, which is 13 kroner/kg higher than in the corresponding period last year.

As a result of the outbreak the company expects to only harvest 5,000 tonnes gutted weight in from Region South this year and high production costs are expected until the fish have been harvested. All smolt will be vaccinated for the disease in the future.

NRS harvested 13,783 tonnes gutted weight in the quarter, which is 52 per cent higher than in the same quarter last year. 12,042 tonnes of the total volume were harvested in Region North and 1,741 tonnes in Region South.

Sales

The sales business sold 27,785 tonnes of salmon during the quarter, which is 24 per cent higher than the corresponding quarter last year. Both harvested and sold volume is the highest in a quarter in the history of NRS.

“NRS takes an active part in the development of a sustainable aquaculture industry through substantial investments over the next three years. We focus on innovation and technology development to ensure our sustainable growth by investing in a smolt facility and offshore fish farms that will create new local jobs,” says Høstlund.

 

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