Norway Royal Salmon (NRS) achieved operational earnings before interest and taxes (EBIT) of NOK 153.1 million (USD 18.8 million, EUR 16.4 million) in the first quarter of this year, an increase of 121 percent year-on-year.
During the same period, its salmon achieved an operational EBIT of NOK 25.54 (USD 3.14, EUR 2.74) per kg, up from NOK 10.31 (USD 1.27, EUR 1.11) per kg a year previously.
“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,” said Charles Hostlund, CEO of NRS.
The group’s Region North posted an operational EBIT of NOK 173.3 million (USD 21.3 million, EUR 18.6 million) in the last quarter, compared with NOK 64.1 million (USD 7.9 million, EUR 6.9 million) in the corresponding period of 2015. The operational EBIT per kg was NOK 26.66 (USD 3.27, EUR 2.86), compared with NOK 10.21 (USD 1.25, EUR 1.10) in Q1 2015.
Its operational EBIT in Region South, meanwhile, was NOK 10.8 million (USD 1.3 million, EUR 1.1 million), down from NOK 13.3 million (USD 1.6 million, EUR 1.4 million) in Q1 2015. The region’s operational EBIT per kg was NOK 15.26 (USD 1.87, EUR 1.64), up from NOK 10.83 (USD 1.33, EUR 1.10) in Q1 2015.
NRS harvested 7,209 metric tons (MT) gutted weight of salmon in Q1 2016, down four percent year-on-year. However, 500 MT that was planned for harvest in the quarter will instead be harvested in Q2. Its total harvest forecast for 2016 is 27,500 MT.
The group expects the global supply of salmon to decline by five to eight percent in 2016 and will continue to be low in the long-term. This, it said, “provides the basis for a positive market outlook” for the industry for 2016 and beyond.
“In March, NRS and Aker ASA applied for 15 development licenses for farming of salmon. Together, the companies have developed a semi-submersible offshore farm designed for harsh environments. By combining NRS' aquaculture knowledge with Aker's offshore competency, the objective is to further develop a profitable aquaculture industry and help to solve the environmental and area scarcity challenges facing the industry,” said Hostlund.
