Norway Royal Salmon farm. (Photo Credit: NRS)

Norway Royal Salmon has best Q1 results ever

Norway Royal Salmon (NRS) has reported  the  best  results ever for Q1 2013 with an operational EBIT of NOK 45 million (EUR 5.9 million) against  NOK 10 million (EUR 1.3 million) year-on-year thanks to a strong salmon market and higher prices.

Operating  revenues hit NOK 528 million (EUR 69 million) compared with NOK 381.6 million (EUR 49.9 million) in  the same quarter of 2012 due to  higher prices and sales. EBIT per kg was NOK 9.26 (EUR 1.21) compared to NOK  3.24 (EUR 0.42).

NRS has reached its planned growth in Q1 and the estimate of 30,000 tonnes in harvest volume for 2013 is up 42 per cent from 2012.

Region North had an operational EBIT of NOK 44.1 million (EUR 5.8 million) in the  first quarter of 2013, compared with NOK 14.1 million (EUR 1.8 million) a year ago, with operational EBIT per kg gutted weight of NOK 9.86 (EUR 1.29) compared with NOK 3.41 (EUR 0.45). The production cost  improved even more, and is slightly lower than in Q4 2012, leaving Region North’s biological status in a favourable state.

Region South registered an operational EBIT of NOK 5.9 million (EUR 772,128) in the first quarter 2013, compared  with NOK 0.6 million (EUR 78,522) in Q1 2012. The operational EBIT per kg gutted weight was NOK 6.36 (EUR 0.83) against NOK 1.40 (EUR 0.18) in the corresponding quarter last year. 

The production cost has increased since Q4 2012 due to the effects of last year’s algae attack, which were bigger than expected. Otherwise, the biological status is good for Region South as well.

NRS harvested 5,405 tonnes during the quarter, an increase of 19 per cent  compared with the same quarter last year, with 4,473 tonnes harvested in Region North and 932 tonnes in Region South. In total, 13,574 tonnes was traded during the quarter, up 6 per cent compared with the same quarter  last year.

Thanks to the continued strong demand for salmon in most markets, the  market situation ahead is regarded as positive. However, the supply growth has slowed as a result of low sea temperatures in Norway, meaning that the volumes of salmon from Norway should be lower this year, but growth is still expected from Chile.

Consequently, both forward prices and spot prices have increased significantly through the first two quarters.

NRS believes that it is in the right place at the right time for the allocation of new licenses. It has 19 licenses in Troms  and Finnmark, again prioritised as the most important growth region in the upcoming new licenses allocation and where at least 20 new ones will be allocated to the salmon farming industry.

Related article:

- Norway Royal Salmon revenues fell 5pc

By Natalia Real
[email protected]
www.seafood.media

Address:	Olav Tryggvasons 40
City:	Trondheim
State/ZIP:	(NO-7414)
Country:	Norway
Phone:	+47 73 92 43 00
Fax:	+47 73 92 43 01
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