NRS share price development until 20 August. (Photo: NRS)

Norway Royal Salmon experiences revenue drop in Q2

Norway Royal Salmon (NRS) obtained a 12 per cent fall year on year in operating revenues in the second quarter of 2014, amounting to NOK 595.7 million (USD 96.7 million) compared to the same period last year, when NOK 675.6 million (USD 109.6 million) had been obtained.

The firm reported a decrease in operational EBIT of NOK 45 million (USD 7.3 million) for the quarter, changing from NOK 71.5 million (USD 11.6 million) in 2013 to NOK 26.5 million (USD 4.3 million) this year.

Both drops were attributable to lower sales prices and lower volumes as well as the increased provision for doubtful receivables related to customers in Russia and Ukraine.

Harvests were reported to be a total of 5,382 tonnes gutted weight in the quarter, a decrease of 21 per cent from the corresponding quarter last year. As a result of accelerated harvesting and extraordinary mortality at two sites, the estimated harvested volume has been reduced by 1,400 tonnes from previous estimates.

At the end of the reporting period, total assets amounted to NOK 1,978 million (USD 321 million), representing an increase of NOK 145 million (USD 23.5 million) from the prior quarter end. The change in total assets is attributable to the increase in the Group’s receivables and in fixed assets.

The Group’s operating activities generated a positive cash flow of NOK 48.6 million (USD 7.8 million) during the quarter, which represents a decrease of NOK 86.3 million (USD 14 million) compared with the corresponding prior-year quarter.

NRS expects a 'turbulent' salmon market in the shrot term and hopes Norwegian exporters will work hard to re-allocate the volume exported to Russia to other markets and regions, such as Europe, America and Asia to avoid further market challenges and pressure on prices.

Thr firm says that for this year it forecasts the salmon worldwide offer will grow between 5 per cent and 9 per cent but in the long term, this growth could be lower, which implies more positive perspectives for the industry.
 
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Address:	Olav Tryggvasons 40
City:	Trondheim
State/ZIP:	(NO-7414)
Country:	Norway
Phone:	+47 73 92 43 00
Fax:	+47 73 92 43 01
E-Mail:	[email protected]
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